IWSR: Gen Z moderation ‘myth’ debunked

New IWSR consumer research suggests Gen Z now drinks at almost exactly the same rate as the wider adult population, challenging one of the drinks industry’s most persistent assumptions. Instead, the data points to Baby Boomers emerging as the generation drinking least.

The idea that Generation Z is turning its back on alcohol has been “conclusively debunked”, according to new consumer research from IWSR.

The latest edition of the global drinks analyst’s twice-yearly Bevtrac survey found that 74% of legal drinking age Gen Z consumers across 15 key markets now consume alcohol, almost identical to the overall adult participation rate of 76%.

The figure marks a significant increase from 66% three years ago, suggesting Gen Z’s drinking habits have stabilised at levels comparable with older generations.

Speaking about the findings, IWSR president and managing director Marten Lodewijks said: “The narrative that Gen Z is the generation of moderation is now conclusively debunked. While Gen Z consumers are creating new patterns for engaging with beverage alcohol, the evidence demonstrates that Gen Z consumers enjoy drinking at roughly the same levels as the rest of society.”

Boomers become the true generation of moderation

Rather than younger consumers driving moderation, the survey suggests Baby Boomers are now drinking less than any other age group.

Boomers recorded the lowest participation rate of any generation at 71%, down two percentage points over the past three years. They also reported the fewest drinking occasions and consumed the smallest number of drinks per session, averaging 2.6 drinks.

Millennials remain the industry’s biggest drinking cohort, with an 81% participation rate, followed by Generation X on 77%.

Lodewijks said: “Boomer drinking has been tailing off for several years. These latest Bevtrac results, however, show bigger than expected drops in Boomer drinking across all major metrics. If this trend continues, it may actually be the Boomers, not Gen Z, who deserve the title ‘generation of moderation.’”

Different drinking habits, not less drinking

Although Gen Z participation has risen, the generation continues to approach alcohol differently from its predecessors.

More Gen Z consumers reported drinking cocktails during the past six months than any other age group, with 84% choosing the category. They were also the most likely to follow government health guidance on alcohol consumption, with 49% saying they paid attention to official advice.

The generation was also more inclined to drink in larger social groups, with 18% reporting their most recent drinking occasion involved five or more people.

Gen Z currently accounts for 17% of the global drinking population, a figure expected to increase as more consumers reach legal drinking age.

Moderation becomes a structural trend

While participation rates have remained broadly stable, the survey found evidence that moderation is becoming embedded across all generations.

Across the markets surveyed, drinkers reported consuming alcohol less frequently and drinking fewer beverages per occasion. Average consumption fell to 3.9 drinks per occasion, down from 4.4 reported in previous surveys.

Lodewijks believes this reflects a long-term shift rather than a temporary response to economic pressures.

“The number of people drinking remains consistent, but the frequency with which we drink and the amount we drink per occasion is dropping,” he said.

“The moderation trend increasingly appears to be driven by lifestyle choices, resulting in a structural, rather than cyclical, change.”

UK and international picture

The UK’s overall alcohol participation rate remained steady at 82%, while Gen Z participation rose sharply from 66% to 76% over the past three years.

Elsewhere, the US recorded an unchanged overall participation rate of 70%, although Gen Z drinking increased slightly to 71%.

India recorded some of the strongest growth, with alcohol participation among higher-income urban Gen Z consumers rising from 60% to 80%. In China, participation remained high across all generations, with Gen Z unchanged at 85%.

A changing narrative

The findings contrast with much of the recent discussion surrounding younger consumers and alcohol.

As previously reported by the drinks business, research published last year by Rabobank argued that lower Gen Z drinking rates were largely the product of economic circumstances and demographic change rather than a wholesale rejection of alcohol. The latest IWSR data suggests participation among young adults has now largely converged with the wider drinking population, although moderation in terms of frequency and volume continues to strengthen across every generation.

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