The US State That Spends The Most On Alcohol Isn't New York Or California

If you were guessing which U.S. state has the highest per-person alcohol spending in America, you might assume it's somewhere like New York or California — places with big cities and no shortage of bars and restaurants. Or perhaps someplace like Louisiana or Nevada would come to mind, with their reputation for big parties. But you'd be wrong: It's Alaska. According to SmartAsset, which analyzed data from the U.S. Bureau of Economic Analysis, Alaskan adults spent an average of $1,249.76 per person on alcohol in 2024 — the highest figure in the country. That's around 40% higher than the national average of $898 per adult.

Just a fraction behind Alaska is Wyoming, at $1,238 per adult, followed by Colorado at $1,216. At the other end of the ranking, Utah came in last, with adults spending just over $600 annually. This is not particularly surprising considering the state's large Mormon population and strict alcohol laws. It's also worth flagging that this doesn't mean Alaskans necessarily drink the most alcohol by volume. When it comes to the most alcohol consumed per person, New Hampshire leads the country with 4.2 gallons per person annually. These numbers may be a bit misleading, however, as New Hampshire lures people across state lines to take advantage of its lack of alcohol sales tax. And if we're talking just beer, it's North Dakota that drinks the most.

Alaska comes in 15th place when it comes to the volume of alcohol consumed per person, so while the state's residents are in one of the upper brackets of consumption, their high spend isn't just due to Alaskans buying lots of it. Part of the explanation is that everything costs more in Alaska. Much of the state's food and drinks are imported, so you've got increased transportation costs (especially in far-flung communities without road access where supplies have to be flown in). Alcohol is no exception: A case of a domestic beer like Bud Light runs at just under $34 on average. That's $5 more than the next-most expensive state, Wyoming. The cheapest state (Illinois) sells a comparable case for around half that price on average.

But there are issues with high alcohol consumption in Alaska, too. The state's epidemiology office reported that binge drinking in Alaska was higher than the U.S. average from 1991 to 2016. This has been chalked up to a mix of reasons like geographic isolation (and correspondingly, limited options for recreation, particularly in small towns), drinking as a coping method for intense winters, and limited access to addiction treatment services. So overall, Alaska's high spend comes down to both high prices and some degree of heavy drinking.