Generation Z, with its unique reliance on social media and other phenomena borne on the digital space, seem to be shaking up the alcohol industry.
Gen Zs have been largely noted as being body-positive, accepting towards the LGBTQIA+ community, being mindful of physical and mental health, and being more conscious about societal issues of today. So it’s no surprise, really, that some non-academic studies show that Gen Zs are more conscious of their alcohol consumption, and their drinking habits are changing the industry. They drink less than previous generations because they care more about their well-being.
According to a report published by an online marketplace for beverage alcohol Gen-Z is perhaps shifting away from high alcohol usage in pursuit of health, well-being, and social responsibility. This shift, while challenging, presents a unique opportunity for the alcohol industry. It educates people, particularly those in the alcohol industry, that in order to compete with this generation, firms must adapt by providing high-quality, healthier, and ethically produced products.
Another survey revealed that Gen-Z drinks 20% less than Millennials, who already consume less alcohol than previous generations. 86% of Gen Z consumers see mental health as equally vital as physical health when determining whether to drink.
This generation’s increased emphasis on well-being has led to the popularity of low- and no-alcohol beverages. Furthermore, a 2024 survey discovered that the amount of Gen Zers intending to drink less alcohol increased by 53% year on year.
Their moderation extends to social situations, where the traditional role of alcohol in socializing is being reevaluated by this generation. “Gen Z prefers beverages that allow them to socialize without the emphasis on alcohol,” according to a consumer trend report.
The rising usage of digital spaces for social connections, which often promote healthier lifestyles, has also contributed to a decrease in alcohol consumption among Gen Z.
Although despite consuming less alcohol, they prioritized quality. They prefer expensive products like tequila, Champagne, and pre-mixed cocktails.
According to the same consumer trend report, this generation overvalued luxury items such as wine spritzers and sparkling wines. Furthermore, individuals are more likely to buy from brands that share their values. This presents a unique opportunity for marketers to connect with over 57% of Gen Zers who choose brands that encourage ethical standards, with a preference for those founded by historically excluded communities.
Generation Z’s trend toward thoughtful, value-driven consumption is not a threat, but an opportunity for the alcohol market. It forces firms to prioritize quality, innovation, and ethical practices, paving the way for exciting new products and experiences that reflect their changing preferences.
As this generation values health, social responsibility, and authentic brand connections, the future of alcohol lies in developing experiences that reflect their changing preferences.
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