Recession and Increased Drinking: Alcoholism on the Rise

Very few Americans can turn on the news as of late and not hear reports of company cut-backs, job losses and reduced spending as the nation settles into one of the worst recessions in decades. The news is not bad in every industry, however. According to the Beverage Information Group, overall sales and consumption of spirits, beer and wine did rise in 2008.

An industry study demonstrates that Americans are buying more alcoholic drinks in the economic downturn than they did the year before when the country was enjoying strong growth. The higher rate of purchasing is not being enjoyed by all categories. Premium drinks and imported beer and wine suffered a loss after enjoying consistent growth.

According to Mintel International, a Chicago-based market analysis firm, consumers are cutting back on drinking in restaurants and bars and are instead consuming more alcohol at home. This trend is expected to continue over the next five years, with light drinkers showing the greatest rate of increase.

The link between the economy and drinking is still unclear as numerous studies done within the industry over the past several decades suggest differing opinions. One 2001 study featured in Health Economics found that binge drinking went up 8 percent when unemployment rose 5 percent. Interestingly, the increase in binge drinking was concentrated most heavily among adults who were still employed.

Whether or not the economic downturn has a direct impact on alcoholism is a different matter altogether as drinking and alcoholism are not the same thing. A person’s drinking habits may increase without alcoholism occurring. Instead, the drinking must be associated with other behaviors, such as increased dependency, violence, lying, irritability and other negative instances.

Alcoholism is often just an outward sign of bigger problems the individual is trying to hide. Depression can be associated with the causes of alcoholism, but job loss and depression are not necessarily synonymous. Consider repeated reports of decreased alcohol consumption in Ireland as a result of the struggling economy. For the Irish and Americans alike, the change in economic status may be forcing people to rethink their purchasing choices.

By contrast, the National Insurance Group Corp. estimates that the number of alcoholics in South Korea increased 23 percent the past two years from 147,886 in 2006 to 171,308 in 2007 and 182,000 last year. Between September and December of 2008 when the economy took a drastic turn, the number of those dependent upon alcohol rose 7.4 percent to 64,215.

In reality, those who are suffering with alcoholism cannot simply decide to make a change due to a decreased availability of discretionary funds. Like any addict, the alcoholic will seek other ways to satisfy their dependence or will hurt those who stand in their way. This is not always a conscience choice, but is often their reality.

So, while sales of light beer are enjoying an increase in the downturn with the Beverage Information group reporting sales growth of 2.2 percent, those who preferred more premium choices seem to be choosing to spend their money elsewhere.