The general consumption trends of Gen Z consumers are no less apparent when it comes to their alcohol preferences. Compared to previous generations, Gen Zers are more health-conscious and more interested in new experiences and new products. The emergence of these consumers has led to a shift in the alcohol industry where low and non-alcohol beverages are being increasingly introduced to the market as well alternative alcoholic beverages that seek to offer novel flavors.
Market landscape
According to the most recent figures on
consumer expenditure, Gen Z consumers spent just over 2.2 billion U.S. dollars on alcohol in the United States in 2021, the smallest amount among all age groups. Many in the Gen Z demographic are of course still not of legal drinking age and those that are are relatively new work force entrants with low purchasing power. The bets made now by brands and marketers are for the future impact of these consumers as they mature into a larger spending bloc. When it comes to what variety of alcohol consumer in this demographic prefer,
most volume is currently within spirits, although this
segment actually shrank in 2022. The
spirits share of alcohol consumption is also amongst the lowest for Gen Z consumers out of all age groups in the United States. Gen Zers are some of the biggest consumers of
ready-to-drink alcohol, comprising the largest share of cider, and seltzer buyers.
Low and no-alcohol
Gen Z consumers are generally drinking less alcohol than older generations, a reflection of their attitudes towards health and wellness. In 2022, they were the
fastest growing demographic of non-alcoholic drinks consumers. Among the
reasons given for drinking less alcohol, wellness motivations, such as avoiding hangovers and long-terms health effects were common. When Gen Z consumers
opted for a non-alcoholic alternative to an alcoholic beverage they likewise typically did so for reasons of health and not flavor preferences. As this generation continues to grow and gain a larger influence, it will be interesting to see if the industry can continue to adapt and offer consumers a reason to keep participating in the market.
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Due to varying update cycles, statistics can display more up-to-date
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