Alcohol Decline: Gen Z Ditching Booze?

Alcohol decline is happening right now. Look at alcohol sales globally. They’re dipping every year. In 2025, sales dipped by 1% across the world, and wine was the hardest hit at 2.4%. Global wine consumption has fallen to its lowest level since 1961. Even the sales of spirits are slowing. And these may look like small figures, but do remember that alcohol was once considered recession-proof. It’s an industry that kept growing for decades, and now it is slowing down.

The Gen Z Factor in Alcohol Decline

And the reason for that could be Gen Z. They’re not drinking as much. On an average, Gen Z drinks 20% less than millennials. And many Gen Zers are abstaining from booze altogether for multiple reasons. One of them is more awareness. That’s one of the reasons. The WHO says no amount of alcohol is good for your body. No amount. Not even that one glass of wine. For all its PR, wine has lost the plot.

Changing Social Habits Fuel Alcohol Decline

Then the nature of socializing is changing. You see, social gatherings used to be associated with alcohol. You get together, you drink, and you spend the rest of the next day recovering. Well, not anymore. More and more people are prioritizing health over temporary indulgence. From reducing their calorie intake to avoiding the dreaded hangover, it is rooted in the desire for a healthier lifestyle.

Rise of Non-Alcoholic Alternatives

Another reason for less drinking is the rise of other options like non-alcoholic beverages. In 2020, the global non-alcoholic beverages market was worth $923 million. By 2028, it could be worth over $1.7 trillion. Non-alcoholic beer is on track to become the world’s second-largest beer category. That’s non-alcoholic beer. The other option is marijuana. The drug is legal in nearly half of all US states for recreational use. And this has led to a shift in consumption patterns.

Economic Pressures and Less Socializing

Reason four is inflation and social media. Everything is more expensive, from rent to food items. So, Gen Z is ditching the pricey cocktails. And reason five, less socializing. The world over, people are hanging out less than ever. Take these numbers from the United States. In the year 2003, people spent almost 30 hours a month with their friends. 30 hours a month. In 2019, that number went down to 10 hours, and less socializing meant less drinking.

Industry Response to Alcohol Decline

Of course, this is not good news for the alcohol industry. They’re not denying the trend. They’re adapting to it. They’re coming up with zero-alcohol beers, alcohol-free spirits, and even large mocktail menus at bars. Sober curious is now a market category. It means you’re curious to see what sober life is. The trend is catching on, but is it here to stay? Will alcohol become the new cigarette?

Will the Trend Reverse?

Well, the popular answer is no. Some analysts say every generation drinks more as it gets older, so Gen Z could be the same. They may not be drinking now, but the trend could reverse later. Second, alcohol still claims cultural space. It is tied to celebrations, to weddings, festivals, even religion, and even rituals that go back centuries. Cigarettes never had that kind of emotional real estate.

So, no, alcohol may not become the next cigarette, but it is becoming something else. A generation ago, drinking was the cool thing. It was a rite of passage and social currency. But with Gen Z, that’s changing. And that might be the most radical shift of all.

Stay tuned for more insights into shifting consumer trends and health movements. Explore our related articles on Gen Z lifestyle changes and non-alcoholic beverage trends to see how these patterns are reshaping industries worldwide.