
Millennials and Gen Z are reshaping the alcohol industry with their distinct drinking habits. Both generations are more deliberate drinkers, with 40% mindful about how much they're drinking and 30% actively limiting their intake. They are also more health-conscious, with a preference for low-alcohol and non-alcoholic beverages. They seek out brands that offer added wellness benefits, such as nutritional value or a boost of energy. Social media influence and a desire for unique experiences also shape their drinking habits. Gen Z, in particular, is driving innovation in the industry with their preference for non-alcoholic choices such as mocktails, and their desire for unique packaging and environmentally conscious brands.
| Characteristics | Values |
|---|---|
| Health-conscious | 38% of Gen Z and 25% of millennials opted for non-alcoholic beverages in place of alcoholic ones |
| Socialising | 49% of Gen Z drinkers drink to have a good time |
| Mindful drinking | 4 out of 10 Gen Z and millennials are mindful about how much they’re drinking |
| Social media influence | Social media has played a significant role in alcohol consumption in terms of drinking less, mindful drinking, and mental health awareness |
| Unique experiences | Gen Z and millennials value unique experiences |
| Sustainability | Gen Z and millennials value sustainability |
| Technological integration | Gen Z and millennials are influenced by technology |
| Diversity and personalisation | Gen Z and millennials value diversity and personalisation |
| Lower alcohol content | Gen Z and millennials favour lower-alcohol beverages |
| Non-alcoholic | Gen Z and millennials favour non-alcoholic beverages |
| Ethical considerations | Gen Z and millennials' choices are influenced by ethical considerations |
| Flavours | Gen Z and millennials seek sophisticated flavours |
| Carbonation | Gen Z does not want carbonation |
| Value-conscious | Gen Z is made up of value-conscious purchasers |
| Social causes | Gen Z expects brands to help move social causes forward |
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What You'll Learn

Health consciousness and wellness
Gen Z and Millennial consumers are increasingly health-conscious and focused on wellness. This has contributed to a notable shift in drinking habits, with a growing preference for low-alcohol and non-alcoholic beverages. Both generations are more deliberate drinkers, with 4 out of 10 mindful about their alcohol consumption and actively limiting their intake. This trend is particularly pronounced in Gen Z, who are less attracted to alcohol than older generations, including Millennials.
Gen Z's health-conscious mindset is reflected in their drinking choices. They are more likely to opt for non-alcoholic alternatives such as juices, sports drinks, mocktails, and CBD-infused beverages. When consuming alcohol, they favour drinks with lower alcohol content, such as hard seltzers, flavoured malt beverages, and pre-mixed cocktails. Additionally, Gen Z prioritises quality and experiences in their beverage choices, seeking out unique and memorable drinking experiences.
Millennials, on the other hand, tend to indulge in cocktails to relax and socialise. However, they are also embracing the trend towards health and wellness, with a growing preference for low-alcohol options. Millennials are the leading demographic in wine consumption, often choosing wine based on their individual preferences and taste. While they may be more inclined to drink alcohol than Gen Z, they are still conscious of their intake and seek healthier alternatives.
The rise in health consciousness among Gen Z and Millennials has significant implications for the beverage industry. To cater to these generations, brands are innovating and expanding their offerings to include low-alcohol and non-alcoholic options. This shift is evident in the increasing popularity of non-alcoholic beer, wine, and spirits, as well as the emergence of sophisticated non-alcoholic spirit brands.
Both generations also value sustainability and social responsibility in their drinking choices. They are attracted to brands that promote social causes and exhibit ethical practices. This awareness of health, sustainability, and social impact sets Gen Z and Millennials apart from older generations and is reshaping the alcohol beverage landscape.
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Social media influence
For Gen Z, in particular, social media platforms have become a space for sharing and promoting sober-curious lifestyles. They are witnessing and engaging in conversations about the benefits of reducing alcohol intake for emotional well-being and mindfulness. This has led to a shift in their drinking habits, with many opting for non-alcoholic alternatives or treating alcohol as an occasional indulgence rather than a regular refreshment. Social media has provided a platform for Gen Z to access and share nutritional information about low- and no-alcohol drinks, influencing their choices with health-conscious options that offer functional benefits like added vitamins.
Millennials, on the other hand, have also been influenced by social media trends promoting healthier alternatives. They are more likely to be conscious of their alcohol consumption and seek out lower-calorie options or drinks with added functional benefits. Social media platforms have provided Millennials with access to a diverse range of beverage options, including craft cocktails, unique spirits, and premium wines. They seek out sophisticated drinking experiences and are willing to pay a premium for quality and flavour.
Additionally, social media has played a role in influencing the social aspects of drinking for both generations. Gen Z and Millennials are exposed to a variety of socialising options beyond just drinking, such as online gaming, café culture, and cinema trips. They are witnessing and sharing experiences that do not necessarily revolve around alcohol, diversifying their social routines. Social media platforms have also facilitated the sharing of drinking habits and preferences, with both generations influencing each other and their peers through their online presence.
The influence of social media on drinking habits has had a significant impact on the alcohol industry, prompting companies to adapt their offerings to cater to the changing demands of these generations. With Gen Z and Millennials prioritising health, mindfulness, and unique drinking experiences, the industry is responding with innovative beverage options that cater to their evolving preferences.
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Unique experiences
Gen Z and Millennial consumers are reshaping the drinking landscape with their distinct habits, driven by a desire for health and wellness, sustainability, and unique experiences. While both generations value unique drinking experiences, they differ in their preferences for alcoholic and non-alcoholic beverages.
Millennials, born between 1981 and 1996, are currently the largest demographic of drinkers, with 90% of them purchasing alcohol. They favour beer and spirits and are driving the growth of wine consumption, with 50% more millennials buying more wine post-COVID. They were the first generation introduced to social media, and this has influenced their drinking habits, with 86% of them on social media platforms.
Gen Z, on the other hand, is less attracted to alcohol, with only 84% of them buying alcoholic drinks. They are more deliberate drinkers, with many actively limiting their intake. This generation spends more on sweeter spirits like cognac, flavoured malt beverages, cordials, and blush wine. They also seek out low-alcohol and non-alcoholic options, with non-alcoholic cocktails being a popular choice. Gen Z does not want carbonation in their drinks, opting instead for smooth, flavorful refreshers.
Both generations are seeking unique and memorable drinking experiences. They are attracted to themed bars, such as vintage speakeasies or futuristic sci-fi lounges. Interactive elements, such as mixology classes, tasting sessions, and drink-making activities, can enhance their overall experience. This desire for experiential drinking is influenced by social media, with Gen Z being the first generation to grow up with it, shaping their drinking habits and promoting mindful drinking and mental health awareness.
The drinking preferences of Gen Z and Millennials are reshaping the beverage industry. With their focus on health, sustainability, and unique experiences, these generations are driving the development of new beverage categories and challenging traditional alcohol brands to innovate and create unique drinking experiences to attract younger consumers.
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Sustainability
Gen Z and Millennial consumers are increasingly concerned with sustainability and social causes when it comes to their alcohol beverage choices. With their purchasing power, they are reshaping the bar scene and the beverage industry as a whole. Understanding their priorities and values is crucial for brands aiming to attract and retain these consumers.
Gen Z, in particular, has gained recognition for limiting their alcohol consumption and embracing a sober lifestyle. They are known to consume alcohol much less than Millennials and other older generations. This generation is more deliberate about their drinking habits, with many being mindful of how much they are drinking and actively limiting their intake. They are also more likely to seek out non-alcoholic alternatives, such as juices, sports drinks, mocktails, and CBD-infused beverages.
Millennials, on the other hand, are known for their preference for cocktails and beer as social beverages. However, they, too, are embracing the trend towards lower-alcohol and non-alcoholic options. Health and wellness are paramount for this generation, and they are willing to try non-alcoholic spirits, low-alcohol beers, and wines.
Both generations value sustainability and social responsibility in their alcohol choices. They want brands to support social causes and demonstrate ethical practices. Gen Z, especially, considers brand reputation and social values when making purchasing decisions. For example, they are more likely to buy from a brand that openly supports LGBTQIA+ rights and racial inclusivity.
Additionally, Gen Z and Millennial consumers are driving innovation in the beverage industry. They seek unique and memorable experiences, whether it's through themed bars, interactive drink-making, or trying new and creative beverage options. They are also more likely to be influenced by social media and technology when choosing what to drink. As a result, brands need to stay informed about their evolving preferences and be willing to innovate and adapt to capture the attention of these generations.
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Social justice and inclusivity
Gen Z and Millennial consumers are driving innovation in the alcohol industry with their unique preferences and values. Social justice and inclusivity are vital factors that influence their purchasing decisions. Here are some insights into how these generations are shaping the alcohol beverage market with their commitment to social justice and inclusivity:
- Support for Social Causes: Gen Z and Millennial consumers are value-conscious and expect brands to actively promote social causes. According to Drizly's report, 42% of Gen Z consider brand reputation important when making purchases, the highest of any generation. Brands that demonstrate a commitment to social justice and inclusivity can gain the loyalty of these consumers.
- LGBTQIA+ Rights: Gen Z, in particular, is more likely to purchase from brands that openly support LGBTQIA+ rights. 34% of Gen Z respondents indicated that they prefer brands supporting LGBTQIA+ rights, and this preference climbs to 46% if the brand also advocates for racial inclusivity.
- Racial Inclusivity: In addition to LGBTQIA+ rights, Gen Z consumers strongly support racial inclusivity. Brands that embrace diversity and inclusivity in their marketing and business practices will appeal to these generations.
- Health and Wellness: Both generations prioritize health and wellness, leading to a surge in demand for low-alcohol and non-alcoholic drinks. They seek beverages that fit into a healthier lifestyle, and brands that offer sophisticated non-alcoholic options are gaining popularity.
- Sustainability: Gen Z and Millennials value sustainability in their alcohol choices. For example, Coors, a mainstream brand, is succeeding with this generation by focusing its social presence on environmental issues and an active, outdoorsy lifestyle.
- Unique and Memorable Experiences: Experiential drinking is highly valued by Gen Z and Millennials, who seek unique and memorable experiences when consuming alcohol. Themed bars, mixology classes, tasting sessions, and interactive drink-making can all enhance their overall experience.
- Inclusion in Menus: These generations also appreciate inclusive menus that cater to diverse dietary needs and preferences. Vegan and gluten-free options, as well as international flavors, can attract adventurous drinkers within these generations.
- Personalization: Gen Z and Millennials appreciate personalized offerings. Bars that offer customizable drinks, such as allowing customers to choose their spirits, mixers, and garnishes, can enhance customer satisfaction.
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Frequently asked questions
Gen Z is less interested in alcohol than Millennials, with only 84% of Gen Z shoppers buying alcohol compared to 90% of Millennials. Gen Z also spends less on alcoholic beverages and tends to prefer hard beverages, champagne, and drinks with little to no alcohol. They are more deliberate drinkers, with 4 out of 10 mindful about their consumption and 3 out of 10 actively limiting their intake. They also tend to seek out drinks with added wellness benefits and spend less on non-alcoholic drinks.
Millennials, on the other hand, tend to prefer cocktails to relax and view drinking as a way to indulge. They are more likely to choose beer for social occasions, whereas Gen Z opts for hard seltzers, flavored malt beverages, or mixed cocktails.
Both generations have embraced sobriety and drink less than older generations. They value health and wellness, with a preference for low-alcohol and non-alcoholic options. They also seek unique and memorable drinking experiences, such as themed bars or interactive mixology classes.
Both Gen Z and Millennial consumers prioritize hydration when it comes to non-alcoholic beverages. Gen Z also seeks out brands that offer added wellness benefits, such as nutritional value or a boost of energy. Popular choices include juices, sports drinks, mocktails, and CBD or cannabis-infused beverages. Traditional options like bottled water, sparkling water, sodas, tea, and energy drinks are also favored.
Health consciousness, sustainability, social media influence, and a desire for unique experiences are key factors that shape the drinking preferences of both Gen Z and Millennials. They are also influenced by ethical considerations and seek out brands that align with their values. Visual appeal and shareability are important, with 55% of Gen Z citing interesting or unique packaging as a key factor in their purchasing decisions.











































