For the past several years, headlines declaring that Gen Z isn’t drinking alcohol have dominated the news cycle. But according to new consumer research conducted by the IWSR, Gen Z is actually consuming just as much as older generations, and the overall decline in alcohol consumption is a far more nuanced picture.
As identified by Bevtrac consumer research done by the IWSR in March 2025, the decline in overall alcohol consumption can be attributed to three factors: disposable incomes are under pressure, consumers are prioritizing essential items over alcohol, and the dwindling of on-premise consumption. But, most notably, Gen Z is actually revving up their alcohol consumption while simultaneously increasing their number of consumption occasions.
“Alcohol usage among LDA+ Gen Z adults has increased significantly from April 2023 lows,” IWSR COO of consumer insights Richard Halstead remarked in the report. “There is evidence that the propensity to go out and spend more is recovering among this group — challenging the received wisdom that this generation is ‘abandoning’ alcohol.”
In a Bevtrac study conducted in April 2023, 66 percent of Gen Z consumers in the world’s top 15 markets reported consuming alcohol in the previous six months. When that study was conducted again in March 2025, that figure jumped to 73 percent. In the United States alone, Gen Z consumption catapulted from 46 percent reported in 2023 to a whopping 70 percent in March 2025.
Across the pond in the United Kingdom, alcohol consumption among Zoomers rose from 66 percent to 76 percent in the same time period, while India experienced a 10 percent rise from 60 to 70 percent. Gen Zers in Australia are also drinking more, with consumption in the generation up from 61 percent to 83 percent. The reason for this revival, as argued by the data analytics company, is due to younger consumers’ willingness to explore a wide range of drinks categories, purchasing of a broad range of alcoholic products, and readiness to visit the on-premise frequently.
But while Gen Z consumption might be up, overall alcohol consumption is still down from previously reported data. It just can’t all be blamed on Gen Z. As the IWSR points out, the second Trump administration has brought political instability to North America as the president enacts — and then backs away from — rash global trade and economic policies.
“The current macroeconomic climate is posing a challenge for beverage alcohol, with consumer sentiment neutral to negative, and spend even more subdued. The U.S. and China are seeing some of the biggest falls, and sentiment has weakened across Asia-Pacific, with other markets maintaining the same levels as a year ago,” Halstead explains. “India remains the only market with all three indicators — consumer sentiment, recalled volume and recalled spend — in positive territory, as upper-middle-class consumers continue to drink and spend more.”
This story is a part of VP Pro, our free content platform and newsletter for the drinks industry, covering wine, beer, and liquor — and beyond. Sign up for VP Pro now!
