top of page
Search

How Gen Z is reshaping the drinks industry

  • Gemma D.
  • 2 days ago
  • 8 min read

The generation that drinks less... so why is the industry so invested?



Meet Generation Z

How do you define a generation like Gen Z? Many different researchers use slightly different definitions and date ranges. For the purpose of this article, however, I'll keep it simple and use a straightforward definition based on birth years. Gen Z refers to people born between January 1995 and December 2006. At the time of writing, that means the oldest members of Generation Z are around 31 years old, while the youngest are around 19 to 20 years old.


Generation Z is the first generation to have grown up entirely in the digital age. They have never known a world without smartphones, social media or instant access to information. Before buying something in a store, Gen Z consumers have the luxury to compare, review and watch. They can follow creators they trust and research a brand's values within minutes. Brand loyalty is no longer inherited simply because their parents bought a particular product, it's a journey on its own.


Although Gen Z is still a relatively young generation, their influence on our economies is growing as they are entering the workforce and have more disposable income than ever before. Winning over consumers that are in their twenties, and doing it well, could mean building a relationship that will last decades.


Drinking less doesn't mean caring less.

I don't know what your high school and university years were like but mine were definitely filled with lots of fun and exploring the different flavors in drinks that I like when and where I could. Or whenever my parents would let me out of the house. From drinking Bacardi Breezers and 7 Up-and-Coebergh mixers, to my first beer (an Oranjeboom I hated), to receiving my first bottle of whisky (a Glenfiddich I loved), my palate was shaped through a lot of trial and error.


Thankfully, the new generation appears to be skipping some of these dubious experiences and I think many people of my generation are ridiculously grateful that camera phones did not exist yet when we were figuring out our lives.


That said... Gen Z has not necessarily checked out from drinking alcohol. What we are seeing is that their relationship with alcohol simply looks different. Three themes keep coming up again and again in research on the topic: moderation, premiumisation and mindful drinking. Important to point out though is that moderation does not immediately mean abstinence. Instead, it is a conscious shift towards drinking with intention rather than habit. In fact it is a more nuanced reality with plenty of variation in how much this generation actually drinks.


Premiumisation is on the flip side of this coin. While this generation may be consuming less, they make each sip count. So spending more on less, but choosing a higher-quality product as opposed to buying your booze in bulk. Tying this behaviour in with moderation, you get to what we call "mindful drinking". It reflects the general awareness of how alcohol impacts your physical and mental health. It is not a rejection of drinking culture, rather a redesign.



Zebra Striping: The drinking trend with the weirdest name

When I first heard of this trend I didn't know what to expect. When I delved deeper however, I realised, I have been doing this for years, only back then, we just called it being sensible. (Usually on a workday)

Zebra Striping is one of the clearest expressions of Gen Z's mindful approach to drinking. It is nothing more than alternating between alcoholic and non-alcoholic drinks during the evening.


But why does this actually have a name? Because the values of Gen Z are deeply rooted in communal experiences and having a drink without necessarily having to deal with all the side-effects of consuming alcohol is part of this behaviour. It lets people set their own pace, drink less if they like and still feel like they are part of the occasion.


One of the places I find that this is being embraced most is high-end cocktail bars, where non-alcoholic options are no longer treated like the ugly step sister but are now a member of the family. One of my favourite bars in Amsterdam, the Belly of the Beast, is a brilliant example of this in practice. Their menu includes unique options, sans the booze.


The rise of low and no-alcohol products in general, with no-alcohol stores popping up all over the place, signals that same shift in consumer expectations and the production of these products has risen significantly over the recent years.


Ready-to-drink is not only about convenience

Covid-19 was the time we were all becoming Home-Bartenders however, once we were able to get out of our homes again, I feel this trend fizzled out within no time. And though we still (on those very rare occasions) love to make our own unique creations, it would be unfair to write RTD (ready-to-drink) off as a "lazy" beverage for those who cannot be bothered to pick up a shaker.


But why are RTDs booming right now? The most important reason is probably the same as why non-alcoholic beer is getting more traction... the quality of the product has improved beyond recognition. When I was growing up, RTDs had that nasty reputation of being overly sweet, artificial and made with poor quality products, but that is no longer the case. Quality ingredients, variety in choice and interesting collaborations between brands are making the shift happen. Not to mention the portability of the cans.


During King's Day this year, I went into town with my friend and even though he had only a tiny backpack, we still managed to get 6 cans of Bacardi Limon and Lemonade in there to see us through a few hours of dancing! Years earlier I was lugging a bottle of wine around, which was a lot less charming.



Brand loyalty is no longer number one... Flavour is

When looking at the behaviour that Gen Z is showing, this is probably where we find the most important shift. In generations prior, we were usually stuck to brands that were "inherited". Your parent's coffee brand, your mothers hairspray, or your father's whisky. But Gen Z doesn't inherit loyalty in that same way. What they have now is an inate curiosity and they approach drinking with the same interest as we used to approach fashion brands or music. They are the generation of experimentation, discovering categories, chasing after limited releases and treating this as a rewards rather than assuming this is normal.


Take whisky festivals as an example. These were built to bring brands and unique flavours to the curious consumer. Dozens of distilleries, collectors and ambassadors come together to introduce people to the latest releases or let them discover true and tested core ranges. What these festivals also do is allow the Gen Z consumer, who is out on an adventure like Dora the Explorer, and let them sample, compare and decide for themselves what flavour they prefer, as opposed to taking a brand's word for it.


TikTok made me buy it!

What is interesting to know is that alcohol brands were ahead of the curve when it came to social media marketing strategies. Back in 2024, research was released that showed how alcohol companies were early adopters of social media platforms, not just running ads but forming partnerships and building their own presence from the ground up.


And investing early in building that presence matters more today than ever before. Research has shown that Gen Z's discovery journey happens nearly exclusively online, through social media channels such as TikTok and Instagram. Those looking for more extensive reviews or how-tos find themselves navigating towards YouTube and content creators are building small eco-systems in which the next generation of consumers can cocoon. Relying on these influencers to show them what brands they can trust, which should be avoided: these (often) independent reviewers tend to carry more credibility with this next generation than ever before.


Research on digital alcohol marketing backs this up by linking exposure to online content with actual changes in consumer behaviour and drinking patterns. This means that brands, when developing their social media strategies, need to be mindful that their strategy doesn't have to be the most polished one, but the one that doesn't sound like marketing fluff at all.


Experiences matter more than possessions

When looking at the spending patterns of Gen Z, brands tend to overlook what matters most. For a long time brands have sold themselve through their bottles, the design, the labels, the unique expressions and their marketing. But Gen Z doesn't spend their money like our parents did. In fact, research has shown that increasingly, this generation tends to spend their money more on structured experiences rather than bottles in the cabinet. An event, a festival, a unique cocktail bar. They don't want the merchandise, they want the memories.


To put it simply, a bottle sitting on a shelf gathering dust, cannot tell a story. But a weekend away with friends or a whisky festival does. As with so many other industries out there, brands that solely focus on pushing products and competing on price will lose the Gen Z consumer, who is looking for that special experience, something that cannot be copied and that feels genuine. If companies shift their attention to building this bridge, they will likely gain more loyalty from a generation that is looking for what a drink brings them over what it lets them own.


Conclusion

Gen Z may well be the generation that drinks less but that doesn't mean they are less engaged or less valuable to alcohol brands. In fact, it is quite the opposite. This is a generation that will drink with intention and attention. They will be more likely to spend more per occasion because they care more about the quality of their experience.


When looking at the alcohol industry as a whole, it is one built on traditions and this is the biggest risk they may face. Unless they start seeing it as an opportunity. Even though we see heritage as a unique selling point, the brands that are willing to meet Gen Z where they actually are (online) with curiosity, variety and who manage to engage them, are the ones who are most likely to win their loyalty.


Sources and further reading:

Anderson, P., O'Donnell, A., Kaner, E., Llopis, E. J., Manthey, J., Rehm, J., & Shield, K. D. (2021). Production, consumption, and potential public health impact of low- and no-alcohol products. Nutrients, 13(9), 3152. https://doi.org/10.3390/nu13093152

Atkinson, A. M., Ross-Houle, K. M., Begley, E., & Sumnall, H. (2017). Constructing alcohol identities: The role of social network sites (SNS) in young people's drinking cultures. Addiction Research & Theory, 25(2), 131–141. https://doi.org/10.1080/16066359.2016.1239870

Donaldson, S. I., et al. (2025). Association between exposure to digital alcohol marketing and alcohol use: A systematic review and meta-analysis. The Lancet Regional Health – Americas. https://doi.org/10.1016/j.lana.2025.101069

IWSR Insights. (2024–2026). Industry insights and market reports. https://www.theiwsr.com/insight/

NielsenIQ. (2024–2025). Consumer Insights and Beverage Trends. https://nielseniq.com/global/en/insights/

Ooms, G. I., et al. (2024). Product, individual and environmental factors impacting the consumption of no- and low-alcohol drinks: A systematic review. Food Quality and Preference, 116, 105085. https://doi.org/10.1016/j.foodqual.2024.105085

Rosenthal, S. R., et al. (2020). Exposure to digital alcohol marketing and alcohol use: A systematic review. Alcohol Research: Current Reviews, 40(1). https://doi.org/10.35946/arcr.v40.1.06




Comments

bottom of page