Headlines proclaim that Generation Z, the cohort born between the mid-1990s and early 2010s, is drinking far less than those who came before them. Market analysts, health commentators, and beverage companies themselves have embraced the label of a “sober generation.” But as more data comes in, the story looks less like a tale of permanent abstinence and more like one of evolution and context.
The Decline
The case for Gen-Z drinking less rests on some strong numbers. According to a recent Morgan Stanley report, Gen-Z consumes about 30 percent less alcohol than Millennials did at the same age. In the U.S., average weekly drinks among 18-34 year-olds have dropped from 5.2 to 3.6 over the past two decades.
This decline is not limited to young people. Spirits sales fell by 8 percent in a single four-week period this year, while beer volumes are down more than 5 percent year-on-year. Even the once-reliable 35–54 age bracket, long considered the backbone of the alcohol industry, has plateaued after two decades of steady growth.
At the same time, alternatives are thriving. Non-alcoholic and functional beverages are booming: Coke Zero and Monster Energy continue to record strong volume growth, and in Western Europe, no- and low-alcohol beer now holds more than 5 percent of market share. These developments suggest something bigger than a generational quirk—they point toward a structural shift in how consumers view alcohol.
The Context
But here is where the narrative becomes more complicated. Surveys conducted by IWSR’s Bevtrac project paint a different picture of Gen-Z’s habits over the past two years. Across 15 major markets, the share of legal-age Gen-Z consumers who had consumed alcohol in the past six months rose from 66 percent in March 2023 to 73 percent in March 2025.
The gains are particularly striking in countries like the U.S., where the figure jumped from 46 to 70 percent, and Australia, which rose from 61 to 83 percent. So which is it? Are Gen-Zers cutting back, or are they drinking more? The answer lies in understanding both the timing and the context.
Moderation Or Abstinence?
Richard Halstead, COO of Consumer Insights at IWSR, argues that moderation, not abstinence, is the better story. Alcohol consumption has always tracked closely with disposable income. Gen-Z came of age during a cost-of-living crisis: high rent, inflation, and steep price hikes at bars and restaurants hit just as they entered legal drinking age. It is little wonder their initial drinking levels looked lower compared to older cohorts at the same life stage.
As more Gen-Zer’s enter the workforce and achieve financial stability, their consumption levels are climbing. But this does not mean they are returning to the binge-drinking culture once associated with youth. Instead, they are showing a clear preference for intentional drinking: fewer occasions, smaller volumes, and higher-quality products.
The Intentional Generation
Gen-Z’s approach can best be summed up in the word “refinement”. Rather than rejecting alcohol altogether, they are curating their experiences. Craft cocktails, premium spirits, and beverages with strong brand stories or wellness credentials appeal to them more than cheap quantity. This shift reflects wider cultural values. Wellness culture, social media, and a greater awareness of mental health all feed into choices about drinking. A beautifully mixed cocktail or a niche craft beer offers an experience that fits their identity, while a night of excess does not. In this way, Gen-Z is not killing alcohol culture as such. They are reshaping it around intentionality, aesthetics, and meaning.
Industry Implications
For alcohol brands, this duality of less overall volume but renewed interest in quality and experience, poses both challenges and opportunities. The old model of relying on younger generations to “catch up” to the drinking patterns of their elders no longer applies in the same way.
Producers must now cater to two simultaneous demands: moderation and premiumization. That means investing in no- and low-alcohol products while also elevating the experiences around traditional drinks. Storytelling, craftsmanship, and lifestyle alignment matter more than mass-market volume pushes.
Investors have already noticed the pressure. Alcohol stocks like Brown-Forman and Boston Beer are trading well below yearly highs, reflecting doubts about future growth. Yet the rise of functional drinks and the premium segment suggests that value, not volume, will determine the winners in the years ahead.
Understanding Contradictions
The apparent contradiction of decline on one hand, rebound on the other, make sense when seen together. Yes, the statistics confirm that overall alcohol use has declined compared to past decades. But they also show that Gen-Z is not abandoning alcohol entirely. Instead, they are rewriting the rules of engagement, with moderation and meaning at the center.
Image Credit: https://freepik.com
_ _ _
© CHURRASCO PHUKET STEAKHOUSE / ALL RIGHTS RESERVED
Reprinting, reposting & sharing allowed, in exchange for a backlink and credits
Churrasco Phuket Steakhouse serves affordable Wagyu and Black Angus steaks and burgers. We are open daily from 12noon to 11pm at Jungceylon Shopping Center in Patong / Phuket.
We are family-friendly and offer free parking and Wi-Fi for guests. See our menus, reserve your table, find our location, and check all guest reviews here:
https://ChurrascoPhuket.com/
#Churrascophuket #jungceylon #phuketsteakhouse #affordablewagyu #wagyu