Gen Z – those born between 1997 and 2012 – has been labelled the “generation that doesn’t drink”. Yet in July this year International Wine & Spirits Research (IWSR) released a report suggesting that Gen Z’s drinking habits are now largely falling in line with the broader population. What transpired were news headlines such as “Gen Z is drinking as much as older generations”, which misses the point at both ends.
“The idea that Gen Z is not drinking at all is wrong,” says Richard Halstead, chief operating officer consumer insights & custom analytics at IWSR. “The idea that Gen Z is drinking in a very different way than the same age group 20 years ago is true. But the fact that participation rates in alcohol consumption for Gen Z are normalising to a close level with the wider population does not mean that Gen Z are suddenly drinking loads. I think there is slightly more nuance to the moderation trend.”
The IWSR report covered 15 key markets including Australia, Brazil, Canada, China, France, Germany, India, Italy, Japan, Mexico, South Africa, Spain, Taiwan, the UK and US. This sample provides a range of geography and economic development to give a comprehensive representation of the global market. But before analysing how people are moderating, it’s important to understand why.
Halstead adds: “If you correlate the rise in iPhone sales with reduction in or abstinence from alcohol, the two correlate inversely. Because of the influence of social media, there’s more social shame for being seen drunk or out of control.
“I think demonstrating your self control is one of the biggest social currencies at the moment. Whether it’s in terms of your looks or in terms of your behaviour or in terms of the goals you’re setting.”
This movement isn’t restricted to Gen Z. Health is a trend which spans generations and is one of the major factors driving moderation globally. The other, which is more specific to Gen Z, is economic. The Covid-19 pandemic brought on a subsequent cost of living crisis globally at a time when the majority of Gen Z became of legal drinking age. “Generally speaking they’ll either be living at home with their parents or if they have their own place then space may be an issue,” says Halstead. “This means they’re more likely to meet and socialise out of the house and have a drink.
“This is the case for the developed markets, like the US, UK, France and then if you go to the developing markets, like Brazil, India and China, almost all socialising happens out of the house – in fact, the idea of hosting people at home is rare because space is limited in a big city.”
Another consequence of the pandemic is a rise in inflation, causing the prices in bars and restaurants to soar. If you combine this economic symptom with Gen Z consumers, many of whom have been in full-time education, the rise in moderation was inevitable.
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“I think that a lot of things have changed for younger people in the last 20-25 years, there’s more to do than just go to the pub and I think that’s another effect we’re properly seeing now,” adds Halstead.
However, as the generation moves from education into full-time work and builds a disposable income, the spending habits are changing. The IWSR report showed that the proportion of legal drinking age Gen Z consumers who have consumed alcohol in the previous six months had risen from 66% in March 2023 to 73% in March 2025. The proportion went from 46% to 70% in the US, 66% to 76% in the UK and from 61% to 83% in Australia.
MODERATION FACTORS
Having established that the drinking habits of Gen Z are situational rather than systemic, other factors are causing moderation across all generations.
“Everyone’s trying to put their best self out there, but in terms of moderation, older people are generally just trying to drink a bit less. Younger people are abstaining for periods of time,” adds Halstead.
“I think it’s become socially acceptable to not drink in a social setting, but also for a period of time because of an upcoming event such as a marathon. Or even trying to detox after a period of partying.”
Social class is another potential factor for the global moderation trend. Halstead says: “For consumer research, defining social class is going to be difficult. I think that the proxy we have is income. What we do know is that moderation tendencies and indeed frequency of consumption do correlate quite strongly with income. If you’re on a low income, you’re more likely to be an abstainer.”
On the flip side, it could be argued that moderation and the trend towards a healthy lifestyle, particularly through social media and smart phones, is being driven by the middle class rather than simply the ability to afford drinking. For years PR agencies and news headlines have claimed younger consumers wanting better quality drinks but on a less-frequent basis.
“The evidence from the consumer data is that if people are doing something less often and on particular occasions, they want something that’s interesting and worthwhile having,” adds Halstead.
“So they’re potentially using price as a proxy for quality. And that’s a very typical younger person behaviour because they’re perhaps not as familiar with a category.
“If you’re not as familiar with the category, what you don’t want to do is to buy the cheapest thing and then find that it’s undrinkable.”
Whether they feel proud or whether they feel victimised as the “generation that doesn’t drink”, Gen-Zers have been incubated in a hostile economic environment. There are some factors being left behind by the generation, such as the transition to full-time work and a recovering economy.
But there are other trends, such as the desire to appear healthy on social media, prove self-control and avoid hangovers, which are trans-generational. These are the ones driving the overall moderation trend across all age groups, not just Gen Z.
