In this article, we are going to discuss the 20 states that consume the most alcohol per capita. You can skip our detailed analysis of the economic cost of excessive drinking, the effect of taxes on alcohol consumption, and the CSR initiatives by various alcohol firms dedicated to promoting responsible drinking, and go directly to 5 States that Consume the Most Alcohol per Capita.
By the 1930s, it was clear that Prohibition had become a public policy failure. The 18th Amendment to the U.S. Constitution had done little to curb the sale, production, and consumption of intoxicating liquors. And while organized crime flourished, tax revenues withered. With the United States stuck in the throes of the Great Depression, money trumped morals, and the federal government turned to alcohol to quench its thirst for desperately needed tax money and put an estimated half-million Americans back to work.
In February 1933, Congress easily passed a proposed 21st Amendment that would repeal the 18th Amendment, which legalized national Prohibition. The end of Prohibition resulted in a financial windfall for the federal government, which collected more than $258 million in alcohol taxes in the first year after repeal. Those millions, which accounted for nearly 9% of the government’s tax revenue, helped to finance Roosevelt’s New Deal programs in the ensuing years.
The Economic Cost of Excessive Drinking:
The top 10% of American drinkers, which equates to around 24 million people, consume an average of 74 alcoholic drinks each week. If you break that number out, that means they consume a little more than 10 drinks each day.
Excessive drinking costs the United States almost $250 billion in 2010 (Latest figures available by the CDC). The federal government picks up roughly $100 billion of the tab, largely through Medicare and Medicaid payments. The median cost per state was $3.5 billion. Several evidence-based strategies can help reduce excessive drinking, including increasing alcohol excise taxes, limiting alcohol outlet density, and commercial host liability.
The Effect of Taxes on Alcohol Consumption:
Over the last two decades, a growing number of economists have examined the impact of alcohol beverage taxes and prices on alcohol consumption and heavy drinking. Several of these studies have focused on high-risk populations, such as youth and young adults, including college students.
This research, using a variety of different data and empirical approaches, has generally found that an increase in the prices of alcoholic beverages led to reductions in drinking, heavy drinking, and the consequences of alcohol use and abuse. These findings indicate that a rise in alcoholic-beverage taxes could be a highly effective option for reducing alcohol abuse and its consequences.
According to a study conducted by the NCD Advisory Council’s signature initiative working group, if countries of the WHO European Region were to introduce a minimum level of 15% tax on the retail price per unit of alcohol, regardless of the type of alcoholic beverage, it would save 133,000 lives each year.
Corporate Social Responsibility Initiatives:
Anheuser-Busch InBev SA/NV (NYSE:BUD) is the Largest Beer Producer in the World and the company launched its Global Smart Drinking Goals initiative in order to make a tangible contribution to reduce the harmful use of alcohol globally.
As part of the initiative, Anheuser-Busch InBev SA/NV (NYSE:BUD) has committed to investing at least $1 billion across its markets in dedicated social marketing campaigns and programs to influence social norms and individual behaviors to reduce harmful use of alcohol. Another goal is to ensure that low- or no-alcohol beer products make up at least 20% of the global beer volume of Anheuser-Busch InBev SA/NV (NYSE:BUD) by 2025. The company is collaborating with the City of Columbus, OH, to launch the first ever city-wide program in the U.S. to understand and help reduce the harmful use of alcohol.
The beer behemoth has been facing some headwinds in the U.S. market after the recent controversy regarding its best-selling brand Bud Light, which resulted in the iconic brand losing its crown as the Top-Selling Beer in America after nearly two decades. Though as we mentioned in our article – 17 Countries with the Highest Percentage of Non-Drinkers – billionaire Bill Gates’ portfolio managers decided to initiate a $96 million position in Anheuser-Busch during the second quarter.
Diageo plc (NYSE:DEO) has also committed to promote positive drinking through its ‘Society 2030: Spirit of Progress’ Action Plan. The plan aims to leverage the spirit giant’s marketing and innovation to make moderation the norm and reach 1 billion people with dedicated responsible drinking messaging. DRINKiQ is a dedicated responsible drinking online platform by Diageo plc (NYSE:DEO) that provides facts about alcohol, the effects of drinking on the body and the mind, and the impact of harmful drinking on individuals and society.
Warren Buffett initiated a position in the company in the first quarter of 2023 with 227,750 shares worth $39.51 million and his position in the company remained unchanged in the second quarter. In Q2, Diageo plc (NYSE:DEO) represented 0.1% of Berkshire Hathaway’s portfolio. The most prominent stakeholder in the company in Q2 was Markel Gayner Asset Management with 1.35 million shares, worth $234.23 million. Diageo plc (NYSE:DEO) ranks among the 12 Best Alcohol Stocks to Own According to Hedge Funds.
With that said, here are the U.S. States that Consume the Most Alcohol in 2023.
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Methodology:
To collect data for this article,, we have referred to the 2023 Surveillance Report by the National Institute on Alcohol Abuse and Alcoholism, looking for the States that Drink the Most Alcohol. Findings in this report are based on alcoholic beverage sales data collected by the Alcohol Epidemiologic Data System (AEDS) from the states or from the National Alcohol Beverage Control Association. The following states have been ranked by their per capita ethanol consumption in gallons, based on population ages 14 and older. The data collected in this report is for the year 2021.
20. California
Ethanol Consumption per Capita: 2.72 gallons
Excessive drinking during the Covid-19 pandemic increased alcoholic liver disease deaths so much that the condition killed more Californians than car accidents or breast cancer. California is the state where people drink the most in the U.S., with 88.59 million gallons of ethanol consumed in 2021.
Sacramento ranks among the Drunkest Cities in America in 2023.
19. Louisiana
Ethanol Consumption per Capita: 2.74 gallons
Invented in the 19th century in a New Orleans coffeehouse, a popular drink in the state is the Sazerac, a local variation of the cognac or whiskey cocktail. With over 31 breweries present in the state, beer is also a big part of the local culture. In New Orleans, the party hasn’t actually started in a long time simply because the party never ends and the bars never close.
18. Massachusetts
Ethanol Consumption per Capita: 2.79 gallons
Alcohol abuse costs Massachusetts at least $5.6 billion annually, while causing thousands of deaths and illnesses, according to a new analysis from Boston University researchers. Yet revenues from alcohol-specific taxes fall far short of repaying these costs, the report concludes.
17. Missouri
Ethanol Consumption per Capita: 2.81 gallons
Missouri is a major center of beer brewing and has some of the most permissive alcohol laws in the U.S. The Midwestern state is also home to Anheuser-Busch, the largest beer producer in the world. The beer giant’s St. Louis brewery is among the Most Famous Breweries in the US.
16. Oregon
Ethanol Consumption per Capita: 2.82 gallons
Despite its high alcohol consumption, Oregon has an extensive history of laws regulating the sale and consumption of alcohol, with also some extended periods of prohibition. Beer production in Oregon began in 1852 and the Beaver State ranks among the U.S. States With the Highest Beer Consumption per Capita.
15. Rhode Island
Ethanol Consumption per Capita: 2.87 gallons
Nearly 1 of every 5 Rhode Island adults (19.7%) reports binge drinking at least once a month. The same goes for high-school students, at 18.3%. Both are higher than their respective national average. Rhode Island currently has the 10th highest tax on wine at $1.40 per gallon, but the 41st highest tax on beer at $0.12 per gallon. This could be a possible point of prevention to decrease alcohol consumption.
14. Minnesota
Ethanol Consumption per Capita: 2.92 gallons
Recent data from the CDC found that over 1,100 Minnesotans died in 2021 as a result of binge drinking. That’s more than homicide and suicide combined.
Minnesota ranks among the Top Drinking States.
13. Alaska
Ethanol Consumption per Capita: 2.92 gallons
Alaska has a reputation as a hard-drinking state with simple tastes. However, the state’s alcohol preferences are changing and it’s drinking less beer, more liquor and more wine. It’s also drinking less mainstream beer and more craft beer.
Many Native Alaskans also avoid alcohol addiction treatment because of the lack of integrating tribal customs and values into treatment.
12. Maine
Ethanol Consumption per Capita: 2.97 gallons
Though famous for its coffee flavored brandy, the Pine Tree State is home to over 90 breweries, with Portland as an important city in the American craft beer industry.
667 Mainers died due to alcohol related causes in 2021 – a 47% increase from 2019.
11. Florida
Ethanol Consumption per Capita: 2.98 gallons
Florida has a number of serious substance abuse issues, but high alcohol consumption continues to be a pervasive problem in the Sunshine State. On top of Florida’s drinking problems among residents, the Sunshine State’s tropical climate has also made it both a spring break destination and a year-round vacation spot. Miami is the top spring break destination in the United States, and Fort Lauderdale is ranked as the booziest spring break destination.
10. Wyoming
Ethanol Consumption per Capita: 3 gallons
Famous for its beautiful nature, including the famed Yellowstone Park, Wyoming is also popular for its moonshine. In the era of prohibition, the state was famous for producing some of the best moonshine in the country. Wyoming also has a budding craft beer culture, with over 40 micro-breweries present.
9. Colorado
Ethanol Consumption per Capita: 3.06 gallons
Colorado sits among the States with the Most Craft Breweries. There are 440 breweries in the Centennial State and together they produce over 834,000 barrels of beer, with a total economic impact of $2.42 billion.
The state is also home to the Brewers Association – the trade group that represents most of the craft breweries in the U.S. – and the Great American Beer Festival.
8. Vermont
Ethanol Consumption per Capita: 3.13 gallons
Vermont is home to a thriving spirits industry, producing a wide variety of products from vodka and maple liqueurs to gin and rye whiskey. The Green Mountain State also boasts over 60 breweries and some of the best-rated craft beers in the world.
7. Wisconsin
Ethanol Consumption per Capita: 3.15 gallons
Wisconsin has one of the lowest alcohol tax rates in the country, resulting in lower retail and wholesale prices. Some of the drunkest counties in America are in Wisconsin and the state has 7 of the 10 U.S. cities that drink the most alcohol per capita.
6. North Dakota
Ethanol Consumption per Capita: 3.3 gallons
Beer is the most popular drink in North Dakota, with the state consuming almost 20.9 million gallons of the tipple in 2021. The heavy influx of oil workers over the last decade has also contributed to the Peace Garden ranking among the Drunkest States in America.
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Disclosure: None. 20 States that Consume the Most Alcohol per Capita is originally published on Insider Monkey.
