Generation Zs Alcohol Abstinence Wanes as Financial Position Strengthens

Recent market research reveals a significant shift in Generation Z’s drinking habits, with financial prosperity appearing to be the key driver behind increased alcohol consumption among young adults.

Data from IWSR’s comprehensive survey spanning 15 major drinks markets indicates that 73% of Generation Z respondents (legal drinking age to 27 years) had consumed alcohol within a six-month period, marking a substantial rise from 66% two years prior. The British market witnessed an even more dramatic surge, with consumption rates climbing from 66% to 76%.

The findings challenge the long-held perception of Generation Z as the ‘abstinent generation’. Richard Halstead, head of consumer insights at IWSR, suggests the previous lower consumption rates were more likely attributed to economic constraints rather than a fundamental shift in social behaviour. The correlation between alcohol consumption and disposable income appears particularly relevant as Generation Z enters the workforce and experiences wage progression.

Despite the uptick in consumption, Generation Z’s drinking patterns remain distinct from other demographics. The cohort demonstrates the highest propensity for ‘intermittent abstinence’, with 60% participating in periodic alcohol-free periods compared to 40% across all age groups. Their preference for spirits over other alcoholic beverages also sets them apart from older generations.

The research positions millennials (aged 28-44) as the most active consumers, with 83% reporting alcohol consumption in the previous six months, followed by Generation X at 79%. Baby boomers showed slightly declining consumption rates, with 72% indicating recent alcohol consumption.

These insights offer encouraging signals for the alcoholic beverage industry, which has faced challenging market conditions and depressed share prices amid concerns of structural decline in demand. The data suggests recent consumption patterns reflect cyclical rather than structural changes, potentially heralding a more optimistic outlook for industry stakeholders.