Jul 16, 2025

Jul 16, 2025

Jul 16, 2025

Jul 16, 2025

Gen Z Isn’t Going Dry, They’re Going Premium

Gen Z Isn’t Going Dry, They’re Going Premium

Gen Z Isn’t Going Dry, They’re Going Premium

Gen Z Isn’t Going Dry, They’re Going Premium

The next generation of drinkers isn’t saying no to alcohol—just yes to better choices

The next generation of drinkers isn’t saying no to alcohol—just yes to better choices

The next generation of drinkers isn’t saying no to alcohol—just yes to better choices

The next generation of drinkers isn’t saying no to alcohol—just yes to better choices

Forget what you’ve heard—Gen Z is not abandoning alcohol. In fact, they’re coming back stronger, smarter, and more exploratory than ever. As moderation myths soften and premium beer surges, it’s time to reset the narrative around who’s drinking, how often, and why.

📉 Cost of Living Bites, But Not Everywhere
  • Alcohol budgets are shrinking globally due to inflation and moderation trends.

  • Developed markets = most cautious: North America and APAC show lower consumer confidence.

  • India & Brazil = growth engines: High-income urban drinkers continue to spend and experiment.

  • On-premise momentum remains slow—but younger consumers are showing renewed appetite for going out.

🔄 Gen Z’s Revival: The Stats Say It All
  • Global Gen Z participation jumped from 66% (April 2023) to 73% (March 2025).

  • US Gen Z consumption rose from 46% to 70%—a massive turnaround.

  • Australia leads with Gen Z participation now at 83%.

  • Younger consumers = broader drink repertoires, especially across spirits and premium beer.

  • More frequent on-premise visits make Gen Z a high-value demographic for venues.

🔍 Myth-Busting the "Sober Generation"
  • Moderation is nuanced: Gen Z isn't rejecting alcohol—they’re redefining their relationship with it.

  • Exploration > excess: This cohort is curious, brand-aware, and values quality over quantity.

  • More chill about abstinence: They’re not teetotal—they’re just selective.

📈 Premium Beer Is Booming
  • Brazil = 14% growth in premium beer volumes (2024), led by high/mid-income consumers.

  • France & Spain show recovery in super-premium beer—swapping down from spirits, not out of alcohol altogether.

  • India sees premiumisation across the board, with Millennials and Gen Zs leading the charge.

🌏 Affluent Markets Drive Growth
  • India’s Gen Z and Millennial elites are confident, experimental, and high-spending.

  • Brazil’s high-income Millennials are expanding into spirits, cream liqueurs, and no-alcohol options.

  • Premiumisation is evolving, shifting from wine and spirits into high-end beer and hybrid categories.

🧠 Merch & Effect POV

The “Gen Z is sober” narrative is a mirage—and a dangerous one at that.

At Merch & Effect, we see a demographic that’s not disappearing, but diversifying. They’re showing up to the on-premise with intent, choosing craft over chaos, and challenging brands to meet them with clarity, conscience, and creativity.

This is not the time to scale back. It’s the time to show up better. Premium beer, flexible spirits menus, and elevated in-venue storytelling are the new battlegrounds. Want their loyalty? Deliver more than a drink—deliver relevance, discovery, and values that mirror theirs.

The future of alcohol doesn’t lie in more volume—it lies in more meaning. And Gen Z? They’re not just ready. They’re already here.

Forget what you’ve heard—Gen Z is not abandoning alcohol. In fact, they’re coming back stronger, smarter, and more exploratory than ever. As moderation myths soften and premium beer surges, it’s time to reset the narrative around who’s drinking, how often, and why.

📉 Cost of Living Bites, But Not Everywhere
  • Alcohol budgets are shrinking globally due to inflation and moderation trends.

  • Developed markets = most cautious: North America and APAC show lower consumer confidence.

  • India & Brazil = growth engines: High-income urban drinkers continue to spend and experiment.

  • On-premise momentum remains slow—but younger consumers are showing renewed appetite for going out.

🔄 Gen Z’s Revival: The Stats Say It All
  • Global Gen Z participation jumped from 66% (April 2023) to 73% (March 2025).

  • US Gen Z consumption rose from 46% to 70%—a massive turnaround.

  • Australia leads with Gen Z participation now at 83%.

  • Younger consumers = broader drink repertoires, especially across spirits and premium beer.

  • More frequent on-premise visits make Gen Z a high-value demographic for venues.

🔍 Myth-Busting the "Sober Generation"
  • Moderation is nuanced: Gen Z isn't rejecting alcohol—they’re redefining their relationship with it.

  • Exploration > excess: This cohort is curious, brand-aware, and values quality over quantity.

  • More chill about abstinence: They’re not teetotal—they’re just selective.

📈 Premium Beer Is Booming
  • Brazil = 14% growth in premium beer volumes (2024), led by high/mid-income consumers.

  • France & Spain show recovery in super-premium beer—swapping down from spirits, not out of alcohol altogether.

  • India sees premiumisation across the board, with Millennials and Gen Zs leading the charge.

🌏 Affluent Markets Drive Growth
  • India’s Gen Z and Millennial elites are confident, experimental, and high-spending.

  • Brazil’s high-income Millennials are expanding into spirits, cream liqueurs, and no-alcohol options.

  • Premiumisation is evolving, shifting from wine and spirits into high-end beer and hybrid categories.

🧠 Merch & Effect POV

The “Gen Z is sober” narrative is a mirage—and a dangerous one at that.

At Merch & Effect, we see a demographic that’s not disappearing, but diversifying. They’re showing up to the on-premise with intent, choosing craft over chaos, and challenging brands to meet them with clarity, conscience, and creativity.

This is not the time to scale back. It’s the time to show up better. Premium beer, flexible spirits menus, and elevated in-venue storytelling are the new battlegrounds. Want their loyalty? Deliver more than a drink—deliver relevance, discovery, and values that mirror theirs.

The future of alcohol doesn’t lie in more volume—it lies in more meaning. And Gen Z? They’re not just ready. They’re already here.

Forget what you’ve heard—Gen Z is not abandoning alcohol. In fact, they’re coming back stronger, smarter, and more exploratory than ever. As moderation myths soften and premium beer surges, it’s time to reset the narrative around who’s drinking, how often, and why.

📉 Cost of Living Bites, But Not Everywhere
  • Alcohol budgets are shrinking globally due to inflation and moderation trends.

  • Developed markets = most cautious: North America and APAC show lower consumer confidence.

  • India & Brazil = growth engines: High-income urban drinkers continue to spend and experiment.

  • On-premise momentum remains slow—but younger consumers are showing renewed appetite for going out.

🔄 Gen Z’s Revival: The Stats Say It All
  • Global Gen Z participation jumped from 66% (April 2023) to 73% (March 2025).

  • US Gen Z consumption rose from 46% to 70%—a massive turnaround.

  • Australia leads with Gen Z participation now at 83%.

  • Younger consumers = broader drink repertoires, especially across spirits and premium beer.

  • More frequent on-premise visits make Gen Z a high-value demographic for venues.

🔍 Myth-Busting the "Sober Generation"
  • Moderation is nuanced: Gen Z isn't rejecting alcohol—they’re redefining their relationship with it.

  • Exploration > excess: This cohort is curious, brand-aware, and values quality over quantity.

  • More chill about abstinence: They’re not teetotal—they’re just selective.

📈 Premium Beer Is Booming
  • Brazil = 14% growth in premium beer volumes (2024), led by high/mid-income consumers.

  • France & Spain show recovery in super-premium beer—swapping down from spirits, not out of alcohol altogether.

  • India sees premiumisation across the board, with Millennials and Gen Zs leading the charge.

🌏 Affluent Markets Drive Growth
  • India’s Gen Z and Millennial elites are confident, experimental, and high-spending.

  • Brazil’s high-income Millennials are expanding into spirits, cream liqueurs, and no-alcohol options.

  • Premiumisation is evolving, shifting from wine and spirits into high-end beer and hybrid categories.

🧠 Merch & Effect POV

The “Gen Z is sober” narrative is a mirage—and a dangerous one at that.

At Merch & Effect, we see a demographic that’s not disappearing, but diversifying. They’re showing up to the on-premise with intent, choosing craft over chaos, and challenging brands to meet them with clarity, conscience, and creativity.

This is not the time to scale back. It’s the time to show up better. Premium beer, flexible spirits menus, and elevated in-venue storytelling are the new battlegrounds. Want their loyalty? Deliver more than a drink—deliver relevance, discovery, and values that mirror theirs.

The future of alcohol doesn’t lie in more volume—it lies in more meaning. And Gen Z? They’re not just ready. They’re already here.

Source: https://drinks-intel.com/cross-category/more-weight-to-counter-gen-z-abstinence-myth-consumer-intel/

Source: https://drinks-intel.com/cross-category/more-weight-to-counter-gen-z-abstinence-myth-consumer-intel/

Source: https://drinks-intel.com/cross-category/more-weight-to-counter-gen-z-abstinence-myth-consumer-intel/

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