Gen Z—the generation born between 1997-2012—can be defined in a number of ways. They are digital natives, dedicated to early 2000s fashions and trends, and deeply concerned about issues like diversity and the environment. And as this generation begins to grow into their buying power and reach the legal drinking age, they have proven “sober curious” is another label that can be used to define them.
Many recent studies share the same findings—Gen Z is drinking less than previous generations. According to AddictionResource.net, 30% of Gen Z members drink weekly compared to 58% of Baby Boomers. A recent study also found that 34% of people in the Gen Z age group are actively making an effort to drink less, while 24% choose not to drink at all.
According to IWSR, among 15 key markets (Australia, Brazil, Canada, China, France, Germany, India, Italy, Japan, Mexico, South Africa, Spain, Taiwan, UK, US), the US shows the second-highest level of abstention among Gen Z, with 54% of Gen Zers claiming not to have drunk alcohol in the past six months.
Gen Z is also spending less money on alcohol, as a recent report by Statista on consumer expenditure found that Gen Z consumers spent just over 2.2 billion U.S. dollars on alcohol in the United States in 2021, the smallest amount among all age groups. However, according to IWSR, when they are buying, they are spending more per transaction in favor of premium products.
Of course, only about a third of Gen Z is of legal drinking age, which could certainly play a role in the low spending and imbibing numbers. But Gen Z’s interests and beliefs are also pointing to a continued trend of teetotaling.
“It is worth noting that it is very early days for Gen Z drinkers in the beverage alcohol market, and close monitoring of their behavior over time will be required to see how their tastes evolve,” said Richard Halstead, COO Consumer Research, IWSR, in a recent report. “However, some of their behaviors – reduction in alcohol quantity consumed, preference for cocktails and premium beverages – is also apparent in the preceding generation known as Millennials (aged from their late 20s to early 40s).”
When Gen Z does reach for an alcoholic drink, they are choosing white spirit-based cocktails, aperitifs, and ready to drink (RTD) offerings, according to IWSR. They are underrepresented in traditional, high-volume categories such as beer and wine.
Gen Z has also been a catalyst for the low-and no-alcohol movement. In fact, a recent report by Statista found that Gen Z was the fastest growing demographic of non-alcoholic drinks consumers.
So why is Gen Z drinking less than previous generations? There are a few reasons.
For one, this generation is more health conscious. AddictionResource.net says one in three young people who decide not to drink do so because of their health. Statista has reported similar findings saying wellness motivations, such as avoiding hangovers and long-term health effects, are common reasons this generation is choosing to drink less or opting for non-alcoholic options.
Other reasons Gen Z is abstaining from alcohol include not liking the taste, wanting to save money, having concerns about becoming addicted, and believing that not drinking can boost their social standing, according to AddictionResource.net.
The on-premise industry should pay attention to these trends within Gen Z, especially as more of this generation reaches the legal drinking age. For one, offering low and no-alcohol cocktails is important. “Nearly half of younger-generation Americans are interested in visiting a sober bar, and roughly 40% wish there were options for alcohol-free or low-alcohol bars in their area,” says AddictionResource.net.
IWSR also advises that the non-alc movement is here to stay as the rising generation dictates demand. The on-premise is uniquely positioned to meet this need as part of an engaging experience—another thing in demand from younger generations.
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