LONDON (Realist English). The study, which surveyed more than 26,000 consumers across the world’s 15 largest alcohol markets, found that 73% of Gen Z respondents — defined as legal-age drinkers up to age 27 — had consumed alcohol in the past six months, up from 66% two years ago. This marks the sharpest rise of any generation.
By contrast, baby boomers — those aged 60 and older — slightly reduced their drinking, with 72% reporting alcohol consumption in the same timeframe, down from 73% in 2022.
The findings call into question the widespread assumption that Gen Z is driving a broader cultural shift away from alcohol. Instead, the report suggests that recent declines in youth drinking were primarily linked to economic constraints.
“Rising prices, especially in bars and restaurants that typically attract Gen Z consumers, have likely depressed demand,” said Richard Halstead, head of consumer insights at IWSR. “But with more young adults entering the workforce and earning more, we’re now seeing a rebound.”
Despite the uptick in Gen Z drinking, overall global alcohol volumes continue to decline. IWSR reported a 2% drop in global spirits sales in 2024, following a 1% fall in 2023. Declines in mature markets like China, the US, and Europe outweighed gains in emerging economies such as Brazil, Mexico, and India.
These shifts have triggered debate among analysts and investors about whether the downturn is cyclical or structural. Beverage giants including Diageo, Pernod Ricard, and Heineken have seen share price pressure amid concerns that the drinking slowdown may be long-lasting.
In response, many companies are doubling down on premiumisation — encouraging consumers to spend more per drink — and investing in low- and no-alcohol alternatives. While total consumption has dropped, revenues have held up, suggesting people are opting for fewer but pricier options.
Some commentators point to broader lifestyle trends — such as a growing focus on health or the time Gen Z spends on social media — as contributing factors in shifting consumption patterns.
IWSR’s latest data, however, show a modest resurgence across all generations except boomers. Alcohol consumption rose among Gen X (ages 44–59) from 77% to 79%, and millennials (ages 28–43) from 79% to 83% since 2023.
Notably, 29% of Gen Z respondents said they were drinking more than before, while just 6% of boomers said the same. Nearly half (42%) of Gen Z consumers reported that their social circles were drinking more compared to two years ago.
These results suggest that, far from abandoning alcohol, Gen Z may soon become one of the industry’s most important — and complex — consumer bases.
