Iowa Ranks Low On The Alcohol Spending List

A new 2025 study from SmartAsset breaks down how much Americans are spending on alcohol by state, and Iowa isn’t exactly leading the charge.

Iowa Lands in the Lower Half

According to the report, Iowa ranks 34th in the nation for alcohol spending. That puts the state below the national average, despite its social reputation for casual, community-centered drinking.

On average, Iowans spend about $801 per year on alcohol, compared to the national average of roughly $898 per adult.

In other words, while alcohol is certainly part of the culture, Iowans appear to be a bit more budget-conscious than much of the country.

Who’s Spending the Most?

At the top of the list, colder and more rural states dominate:

Alaska ranks #1, with about $1,250 spent per person annually
Wyoming and Colorado follow closely behind

The trend suggests geography, lifestyle, and even climate may play a role in how much residents spend.

And the Least?

States with the lowest alcohol spending include:

• Utah
• West Virginia
• Mississippi
• Oklahoma
• Tennessee

These states consistently rank lower due to a mix of cultural, religious, and economic factors.

An Interesting Contrast in Iowa

While Iowa ranks lower in overall spending, it has historically reported higher-than-average binge drinking rates compared to other states.

That creates an interesting contrast:
Iowans may not be spending the most on alcohol, but when they do drink, they may be drinking more in shorter periods of time.

The Bigger Picture

Nationwide, Americans spent an estimated $228 billion on alcohol over the past year, showing just how significant alcohol consumption remains in everyday life across the country.