The trend of declining alcohol consumption among British Generation Z has intensified over the past year, raising concerns across the global wine industry and other traditional drinks sectors.
According to the latest data from CGA by NIQ (Nielsen), this generational shift could signal a significant change in consumption habits, as younger consumers increasingly opt for alternatives to alcohol.
The Decline in Alcohol Consumption
Over the past decade, there have been signs of a gradual move away from alcohol among younger consumers. Initially, the focus was on the rise of ready-to-drink (RTD) beverages and hard seltzers, which were seen as trendy alternatives to traditional wines and spirits. However, recent findings from CGA by NIQ’s OPUS study reveal a deeper and more concerning trend: a general decline in alcohol consumption among the younger generation. Specifically, individuals between the legal drinking age and 24 years old have shown a notable decrease in their alcohol intake, with 30% of respondents in this age group reporting that they drink less than they did a year ago. Even more striking, 13% of these young adults have chosen to abstain from alcohol altogether.
Health and Well-being as Driving Factors
The primary driver behind this shift is a growing concern for health and well-being. Among the young people surveyed, 74% expressed a strong desire to lead a healthy lifestyle, underscoring the increasing importance of personal well-being among Generation Z. This generation, more than any before, is prioritizing mental and physical health, which is reflected in their changing consumption patterns. This focus on health is leading to a reevaluation of alcohol’s place in their lives, and many are opting to reduce or eliminate alcohol consumption in favor of healthier alternatives.
Implications for the Drinks Industry
For the global drinks industry, this trend presents both challenges and opportunities. Traditional categories such as wine and spirits may struggle as they contend with declining interest from younger consumers. However, the industry can also find growth by adapting to these changing preferences. The rise of non-alcoholic beverages, for example, offers a promising avenue for brands that can develop appealing, high-quality, and health-conscious products.
Interestingly, despite the decrease in alcohol consumption, the hospitality sector may not suffer as much as initially feared. The OPUS study highlights that 60% of 18-24 year-olds continue to frequent bars and pubs at least once a week. However, this has not translated into a significant rise in non-alcoholic drink sales. While these young consumers are 6% more likely to order a non-alcoholic drink than the average consumer, overall soft drink sales have not seen a proportional increase.
Moderation Over Abstinence
The report also discusses the phenomenon of “zebra striping,” where consumers alternate between alcoholic and non-alcoholic drinks during a night out. This indicates that while moderation is a key trend, young people are not entirely giving up alcohol. Instead, they are adopting a more balanced and conscious approach to drinking, where the occasional alcoholic beverage is still part of their social routine.
Adapting to a New Beverage Landscape
Violetta Njunina, Client Director at CGA, emphasizes the importance of beverage suppliers adapting to this evolving landscape. “As moderation becomes a key trend, especially among younger generations, the ability to offer appealing, high-quality, and healthy non-alcoholic beverages is crucial to success,” Njunina explains. Brands that align with these changing preferences will be better positioned to thrive in this new era of beverage consumption.
Conclusion
As British Generation Z continues to redefine their relationship with alcohol, the drinks industry must evolve to meet their needs. While the decline in alcohol consumption may pose challenges for traditional drinks categories, it also presents an opportunity for innovation and growth in non-alcoholic alternatives. The key to success will be understanding and responding to the health-conscious, balanced approach that defines this generation's consumption habits. For brands willing to adapt, this shift could lead to a new era of success in a changing marketplace.