Recent data from CGA by NIQ has revealed a concerning trend regarding alcohol consumption among Gen Z. Contrary to earlier beliefs that the younger generation was simply moderating their drinking habits, it is now evident that Gen Z is making a conscious choice to reduce their alcohol intake significantly. This shift has raised alarms within the global wine and spirits industry, as it indicates a potential change in drinking habits among younger consumers.
The data shows that up to 30% of individuals of legal drinking age, up to 24 years old, are drinking less than they did the previous year. Furthermore, 13% of this age group have completely abstained from alcohol. The primary driver behind this change is a focus on health, with 74% of Gen Z individuals stating that they are seeking a healthier lifestyle. This emphasis on well-being extends beyond just avoiding alcohol and reflects a broader cultural shift towards holistic health.
The rise of alcohol-free social media pages and communities has played a significant role in amplifying the trend of reducing alcohol consumption among Gen Z. Platforms like Instagram and TikTok are filled with influencers advocating for non-alcoholic alternatives and promoting a “clean” lifestyle. Alcohol is increasingly viewed as a deterrent to overall wellness, leading younger consumers to make more conscious choices about their drinking habits.
While the declining alcohol consumption among Gen Z may be concerning for the drinks industry, there is still room for innovation and growth. Approximately 60% of individuals in this age group continue to visit bars and restaurants weekly, with a growing preference for ordering soft drinks. This presents a significant opportunity for the drinks sector to develop appealing non-alcoholic options that cater to the health-conscious preferences of today’s consumers. Adapting to these changing preferences and offering high-quality, health-conscious soft drinks will be crucial for suppliers looking to thrive in this evolving market. 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 shifting landscape of alcohol consumption, the challenge for alcohol brands will be to understand and leverage these changing preferences. Rather than viewing the decrease in alcohol consumption among Gen Z as a threat, brands can see it as an opportunity for growth and innovation. By aligning their offerings with the preferences of health-conscious consumers, alcohol brands can thrive in this new era of beverage consumption.
The data regarding the reduction in alcohol consumption among Gen Z signals a significant shift in drinking habits among younger consumers. The emphasis on health and wellness, influenced by social media trends, has led to a decline in alcohol intake among this demographic. However, this shift also presents opportunities for the drinks industry to innovate and cater to the evolving preferences of today’s consumers. By adapting to these changing trends and offering appealing non-alcoholic options, suppliers can position themselves for success in this new era of beverage consumption.