Evolving Consumption Patterns in the U.S. Alcohol Market: Disaggregated Spatial Analysis

Abstract

Global consumption patterns for beer, wine, and other alcoholic beverages are evolving, with some convergence in per capita consumption among nations as traditionally beer-drinking nations increase their consumption of wine and, conversely, wine-consuming nations shift towards beer. This paper explores regional patterns of alcoholic beverage consumption within the United States. One purpose is to see if similar patterns of convergence in consumption patterns can be observed at a finer (sub-national) spatial scale as have been documented in international comparisons. A more fundamental purpose is to explore the converse question and seek to better understand the persistent differences in alcoholic beverage consumption among groups, whether within or among countries. These issues are addressed using annual U.S. national and state-level data over four decades and, for the more recent period, supermarket scanner data at finer scales of geopolitical aggregation.

Keywords: Alcohol Consumption Patterns, Convergence, Rotterdam

JEL Classification: L66, D12, Q11