A record 32m people were thought to have shunned crowded pubs and bars to celebrate New Year's Eve at home with family and friends.
That is 20% more than last year. Rowdiness, high prices and travel problems are blamed.
Despite fears about 24-hour drinking, research shows Britain's pub culture is now on the decline.
There has been a fall of nearly 25% over the last five years in the number of 18 to 34-year-olds who spend their leisure time in the pub.
Only those pubs serving food have stayed popular, according to Target Group Index's Julian Tooke.
He said the figures boded poorly for the future of pubs.
Meanwhile sparkling-wine producer Freixenet is launching an advertising campaign aimed at women who prefer staying in with friends.
Adverts will use the slogan: "The best nights out don't always involve going out."
The Independent on Sunday 01/01/06 page 16
The Sunday Times 01/01/06 page 3