Craft beer must evolve to win back younger drinkers
Fresh findings from CGA by NIQ show craft beer is losing momentum with younger drinkers despite the category’s broad reach in the US on-trade. The data points to an urgent need for new strategies that speak to Gen Z tastes and venues.
Craft beer may still command loyalty in many US on-trade settings but its grasp on younger drinkers is weakening. According to new research, craft’s rate of sale has fallen by 10.3% year on year and the segment has surrendered 1.5% of share to competitors, including imports.
The proportion of 21 to 34-year-olds buying craft has dropped by 7% since 2019. CGA considers this concerning because these consumers represent the category’s long-term future.
Gen Z’s understanding of craft diverges from that of older drinkers. They over-index for interest in flavour, natural ingredients and ABV, making these essential parts of communication. Their lower awareness of regional breweries and craft’s independent heritage creates an opening to explain the movement’s role in diversity and sustainability.
Ben Tilton, CGA by NIQ’s client manager for on premise Beval, said: “Because craft beer sales skew towards older consumers, it’s vital to keep nurturing the next generations of buyers. Gen Zers can be hard to reach and their sentiments are shifting but responding to their needs can help brewers grow share. Our latest research provides the ideal foundations for earning their loyalty and futureproofing sales.”
Where to find the next wave of craft drinkers
CGA reports that Gen Z prefers different drinking environments from older groups. Experiential bars and high-energy venues hold much higher appeal and may offer the strongest opportunity to introduce them to craft. While casual dining restaurants, neighbourhood bars and sports bars remain important to the wider craft drinker base, Gen Z is markedly less likely to visit taprooms and brew pubs, which limits the impact of traditional brewery-led spaces.
Draft remains the beating heart of craft with 82.4% of volumes in the past 12 months, according to CGA. However packaged formats carry more weight in fast-paced venues that Gen Z frequent. Visual presence on cans and bottles as well as distinctive tap handles can serve as a crucial invitation for younger drinkers to try something new.
Broadening the style spectrum
IPAs, pale ales and seasonal releases remain Gen Z’s top three craft segments as reported by CGA but their preferences stretch further. There is room to lead them into hazy styles along with no and low alcohol options that suit moments of lighter drinking.
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CGA’s insights show that recommendations matter greatly to this generation. Social media steers much of their decision-making and the Global Bartender Report identifies staff influence as a significant factor. Menu-led cues also carry weight, especially for those seeking new flavours rather than relying on familiar choices.
A shift away from performative abstinence
Alongside the CGA findings sits a broader market pivot. As reported by the drinks business, the Bevtrac survey commissioned by the IWSR shows that month-long abstinence among Gen Z is declining in most of the 15 markets studied. In the UK rates have fallen from 33% in autumn 2024 to 24% in autumn 2025 and in Australia from 39% to 24%.
France has dropped from 32% to 24%, Italy from 26% to 16% and Brazil from 39% to 35%. The US remains steady at 32% to 31% while Mexico rises from 31% to 35%.
Across all markets Gen Z participation in abstain campaigns now stands at 28%, down from 30% in autumn 2024.
Moderation takes gentler forms
Temporary abstinence across all ages is also softening. The drinks business reports that 39% of adults engaged in temporary abstinence for at least one day in the previous six months down from 40% in autumn 2024 and 41% in spring 2025.
In the US the figure has dipped from 40% to 38% and in the UK from 39% to 35%.
The IWSR also confirms that Gen Z is now drinking more similarly to the general population. In autumn 2025, 74% of Gen Z respondents drank in the past six months up from 73% in spring 2025 and from 66% in spring 2023. With adult participation at 77% the gap has narrowed to 3% from 9% in spring 2023.
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