The Changing Drinking Habits of Generation Z
Significant shifts in consumer behavior, particularly regarding alcohol consumption, are being driven by Generation Z (also known as Zoomers). This trend is having a profound impact on the global wine market and the wider alcohol industry. Research indicates this generation drinks less, leading to falling demand for wine, especially within the European Union and the United States. The rise of the #underconsumptioncore trend on TikTok and YouTube in 2022 reflects this growing awareness among young people. These changes have already triggered a decline in wine production volumes and affected the restaurant sector.
According to a 2024 report by the International Organisation of Vine and Wine (OIV), wine consumption in the EU has fallen by 5.2% compared to the average of the last five years. The EU wine market volume stands at 103.6 million hectoliters, accounting for 48% of global consumption. In 2024, the EU wine market contracted by 2.8% compared to 2023.
Meanwhile, a sociological survey by the IWSR group highlights Generation Z's moderation:
- 54% of consumers in the US had not consumed alcohol in the previous six months;
- 44% in Canada had abstained for a similar period.
Japan shows the highest level of abstinence among Gen Z consumers (aged 18-26) at 63%. A study by the Katz research group (Brandeis University) found that wine consumption among Gen Z has decreased by 34% since 2019. The main reasons young people choose to abstain include:
- The belief that wine is not healthy (71% of respondents);
- High cost (56%);
- A shift towards non-alcoholic beverages (43%).
The Situation in Ukraine and Market Reactions
Alcohol consumption in Ukraine presents its own distinct pattern. According to a 2024 survey by KIIS in collaboration with the WHO, the highest consumption is in the 18-29 age group (85.8%). In 2024, 53.6% of adult Ukrainians consumed beer, 53.4% wine, and 51.2% spirits. Furthermore, the share of Ukrainian adolescents aged 15-16 engaging in excessive alcohol consumption is 14%. It is also worth noting that only about 50% of Americans under 35 feel confident ordering non-alcoholic drinks in public.
These shifts in alcohol consumption are causing concern among producers and restaurateurs. As one seller from a major wine group noted,
"we are facing an existential threat regarding whether society will continue to drink alcohol, including wine."David Chang, chef and founder of the Momofuku restaurant group, emphasized that the Zoomer habit of drinking less is a genuine existential threat to the restaurant business. Experts believe these trends could have a serious impact on the wine market and the alcohol industry as a whole.
This represents a broader cultural shift, as younger generations increasingly prioritize wellness. The changes in Gen Z's alcohol consumption signal a transformation of cultural and social norms. Amid growing awareness of health and well-being, young people are more frequently choosing alternatives to alcohol, which may permanently alter the market landscape. Producers and restaurateurs must adapt their strategies to meet new consumer preferences, potentially focusing on non-alcoholic drinks and healthier options to attract a younger audience.