Why you could be drinking more prosecco than Champagne at your New Year's party this year

• Consumers are choosing prosecco over Champagne and opting for cheaper tequila amid economic uncertainty.
• It follows a boom time for top-shelf liquor, which saw double-digit sales growth in 2021.

Drinkers are starting to reach for the cheap stuff after months of booming sales for top-shelf alcohol.

Sales of premium spirits declined 3.7% in the 48 weeks ending December 3, compared to 4% growth in 2021. And while the highest-end liquor — tequila that costs more than $50, for example — is still seeing sales growth, it slowed to 2% this year compared to 24% in 2021, The Wall Street Journal reports, citing an analysis of Nielsen data by beverage industry consulting firm Bump Williams.

The premium alcohol business saw a boom in 2021 thanks to traveling and partying finally being back on the table. According to data from the Distilled Spirits Council of the US published by Forbes, drinkers shelled out for high-end whiskey and tequila at a rate that was more than double the previous five-year average.

Sales of Champagne also reached a record high of $5.7 billion in 2021, 14% higher than the pre-pandemic record, Reuters reported. In fact, heading into New Year's weekend last year, retailers were worried about keeping Champagne in stock as demand jumped and supply chain challenges made it harder to get.

But 2022 looked a lot different. Months of inflation-induced budget stress and worries over what's in store for the economy in 2023 have led shoppers to make different choices, including buying less and trading down to cheaper products, including lower-priced bubbly like prosecco over top-shelf Champagne.

Even before the holidays, retailers were predicting that drinkers would make trade-offs when it came to products like Champagne. Alcohol delivery service Drizly found in its annual retail report that 59% of retailers were anticipating shoppers would choose less expensive Champagne, or switch to other types of sparkling wine altogether, when shopping for the holidays. Liz Paquette, Drizly's head of insights, told The Journal that an average bottle of prosecco costs $16 on Drizly's site, compared to $57 for an average bottle of Champagne.

But before you feel too bad for the Champagne industry, don't worry — it's still on track to beat its 2021 sales record, David Chatillon, chairman of the Union of Champagne Houses, told Reuters.

"We have consumers who are perhaps less impacted by inflation than others, and we have noticed since the end of the pandemic crisis that people want to have fun, they want good products, and opening a bottle of champagne is in itself a celebration," Chatillon said.