Gen Z: the generation of moderation?
Is Gen Z really the generation of moderation? Apparently not, according to new data from IWSR Drinks Market Analysis.
IWSR’s most recent Bevtrac survey looked at consumer sentiment. The latest findings show the assumption that Gen Z is drinking less than previous generations might not be the case.
Looking across 15 markets, the results showed the proportion of Gen Z legal-drinking-age (LDA) adults who have consumed alcohol in the past six months has risen from 66% in March 2023 to 73% in March 2025.
In certain markets, this increase was even more pronounced. For example, in the US, the jump went from 46% in 2023 to 70% in 2025. Meanwhile, in the UK, it leapt from 66% to 76%, and Australia went from 61% to 83%.
The overall rate of 73% is still lower than the participation in alcohol consumption across all adults (78%), but not massively different.
Richard Halstead, IWSR COO of consumer insights, said: “Moderation has been a growing trend among all drinkers for several years, but the idea that Gen Z LDA-plus drinkers are somehow fundamentally different from other age groups isn’t supported by the evidence.
“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.”
The survey findings also showed several trends among the younger cohort. IWSR noted their behaviour is more aligned with that of previous generations than has been reported.
The generation is more likely to drink a wider range of alcohol categories as a whole, having reported consuming more than five styles over the six months in question. By comparison, Boomers had tried just over four.
Gen Z is also more likely to drink spirits than all adult drinkers combined.
Furthermore, they are more likely to drink alcohol at a bar, restaurant or club than adult drinkers as a whole. Nearly half of Gen Z respondents said the on-trade was the last place they’d had an alcoholic drink. This compares with just over a third of all adult drinkers.
Earlier this year, a report by Rabobank shunned the narrative that the younger generation is consuming less alcohol because of health concerns linked to social media, calling it “greatly overblown”.
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