Recent data from CGA by NIQ has revealed a concerning trend among Gen Z consumers – a reduction in alcohol consumption. What was initially seen as a trend towards moderation has now evolved into a lifestyle choice for this generation. This shift has sparked worry within the global wine and spirits industry about potential changes in drinking habits. Previous assumptions that Gen Z was simply swapping out traditional alcoholic beverages for alternatives like RTDs and hard seltzers have been challenged by new OPUS data showing an overall decrease in alcohol intake among Gen Z consumers in the UK.
One of the major drivers behind this shift in alcohol consumption habits is a focus on health. A staggering 74% of Gen Z consumers aged up to 24 revealed that they were seeking a healthier lifestyle. This emphasis on wellness extends beyond avoiding alcohol and reflects a broader cultural movement towards holistic health. Younger consumers are increasingly prioritizing their mental and physical well-being, which naturally impacts their choices both at the bar and in their daily lives.
The rise of alcohol-free social media pages and communities has also played a significant role in shaping Gen Z’s drinking habits. Platforms like Instagram and TikTok are filled with influencers promoting non-alcoholic alternatives and endorsing “clean” living, with alcohol being portrayed as a major deterrent to a healthy lifestyle. These platforms not only mirror consumer preferences but actively influence them, driving the shift towards moderation and alcohol reduction among younger generations.
While the decline in alcohol consumption among Gen Z may not be welcomed news for the drinks industry, there is still room for optimism. Roughly 60% of this age group still frequent bars and restaurants weekly, with data indicating that they are only 6% more likely to order a soft drink. This presents a unique opportunity for the drinks sector to innovate and introduce appealing non-alcoholic options that resonate with today’s health-conscious consumers. By adapting to these changing preferences, suppliers can thrive in this new era of beverage consumption and appeal to the upcoming generation of drinkers.
As Violetta Njunina, client director at CGA, noted, “With moderation becoming a key trend, especially among younger consumers, offering appealing, high-quality, and health-conscious soft drinks is crucial.” In this evolving market, alcohol brands face the challenge of understanding and leveraging these shifting preferences to drive growth and innovation. Rather than viewing the reduction in alcohol consumption as a death knell, it should be seen as an opportunity for the industry to evolve and cater to the changing needs of consumers.
The landscape of alcohol consumption is changing, particularly among Gen Z consumers. The industry must adapt to these shifting preferences by offering innovative non-alcoholic options that appeal to health-conscious consumers. By understanding and leveraging these trends, alcohol brands can thrive in this new era of beverage consumption and remain relevant to the evolving preferences of younger generations.