While often labelled as the generation of moderation, the report’s findings show that across 15 key markets, the proportion of legal drinking age Gen Z consumers who have consumed alcohol in the past six months has risen from 66% in March 2023 to 73% in March 2025.
The trend is more pronounced in some key markets over the same time period: from 46% to 70% in the US, from 66% to 76% in the UK and from 61% to 83% in Australia.
“Moderation has been a growing trend among all drinkers for several years, but the idea that Gen Z legal drinking age drinkers are somehow fundamentally different from other age groups isn’t supported by the evidence,” said Richard Halstead, IWSR chief operating officer of Consumer Insights.
“For instance, we know that beverage alcohol consumption correlates with disposable income, and Gen Z came of age during a cost-of-living crisis. Rising prices have been especially acute in bars and restaurants – places that appeal most to Gen Z drinkers.
“With every year that passes, more Gen Z drinkers are entering the workforce, and those already in the workforce are typically earning more. I think we should expect that, as their incomes rise, they will drink more often, just as Millennials did before them.
“The good news for the beverage alcohol industry is that, while moderation is set to be a long-term factor, consumption is not in a tailspin. According to this evidence, much of the recent decline is cyclical, not structural, and is definitely not the ‘fault’ of Gen Z.”
