Alcohol Industry Trends 2025: How Gen Z and Moderation Are Reshaping Drinking Habits

A “Sidecar” cocktail is sitting on a bright background. (Photo by Seung-il Ryu/NurPhoto via AP)

The DISCUS Annual Conference 2025 provided deep insights into the evolving landscape of the beverage alcohol industry, with industry leaders weighing in on key trends shaping consumer behavior. Experts emphasized shifting drinking patterns, particularly among younger generations, and the growing prominence of non-alcoholic and low-alcohol options.

Moderation and the Rise of No- and Low-Alcohol Options

Consumers are increasingly embracing moderation — but not necessarily by abstaining from alcohol altogether. Kaleigh Theriault, director of thought leadership for the Beverage Alcohol Vertical at NielsenIQ, says that 93% of non-alcoholic beverage purchasers are also buying alcohol-containing products.

Theriault highlighted how this shift manifests in multiple ways.

“To start with the idea of moderation, I think it looks like a couple of different things,” Theriault said. “The first is when we talk about premiumization and people drinking less … that’s a form of moderation. Consumers feel like they’re spending the same amount, but they’re actually drinking a little bit less.”

The growing popularity of no- and low-alcohol options is another significant factor. While non-alcoholic beer and wine have gained wider consumer acceptance, Theriault noted that non-alcoholic spirits require more consumer education.

“They really have the ability to flatter their counterparts in bars and restaurants to elevate a mocktail to the next level,” she said. “We also see low-alcohol options being more and more popular too, because somebody doesn’t want a watered-down cocktail. They still want that full flavor, they just don’t want all the impacts of the alcohol.”

Charlotte Voisey, executive director of the Tales of the Cocktail Foundation, reinforced the mainstreaming of non-alcoholic beverages.

“When you go into a proper bar now of a certain degree, it’s usual to see a spirit-free mocktail,” Voisey said, likening the trend to the evolution of vegetarian options on restaurant menus. “It’s not that all of a sudden there are more people drinking these non-alcoholic drinks … but there are many more non-alcoholic spirits. Now, we can all probably name three or four easily, whereas five years ago, we’d be hard-pressed to remember [one].”

Voisey also pointed out that younger consumers are more inclined to view alcohol-free drinks as part of the overall cocktail experience rather than a separate category. “Some cocktail bars you’ll see actually the non-alcoholic cocktails blended in on one menu, which I quite like,” she said.

Gen Z’s Unique Approach to Alcohol Consumption

Contrary to popular belief, the younger generation is drinking — but differently than their predecessors. Theriault addressed misconceptions about Gen Z’s drinking habits, emphasizing that while they are consuming alcohol, they are doing so with more intentionality.

“They are drinking. They’re just not drinking in the same way that other generations came of legal drinking age,” Theriault explained. “The first thing that you have to understand is that not all of them are legal drinking age at this time, so there’s still a lot for us to learn over the next five or so years, as they become all legal drinking age.”

Many Gen Z consumers turned 21 during the COVID-19 pandemic, missing traditional initiation experiences like bar outings and cocktails out at a nice restaurant. This delay in exposure, combined with an increased awareness of responsible drinking, has resulted in a more selective and occasion-driven approach to alcohol consumption.

“Gen Z isn’t the generation that’s going to open up and mix a drink on a random after-their-work day,” Theriault noted. “We’re a generation that is drinking with intent and is very purposeful. So when they do look to alcohol for an occasion, it’s really more celebratory.”

This generation also prioritizes authenticity in branding. “They can read through some of the BS, I guess you could call it, in marketing,” Theriault said.

Thanks to smartphones, she points out, they have the answers to any questions they may ask readily accessible — so it’s important for brands to disseminate honest messaging and build products truly geared toward these younger consumers.

“They do have that phone at their fingertips to understand things — and they want something that’s made for them,” Theriault said. “As much as they’re influenced by their parents when it comes to what they drink, they do still want products that are new and something they feel like is their own.”

The Industry’s Path Forward

The 2025 DISCUS Annual Conference underscored how the beverage alcohol industry is adapting to changing consumer preferences. Whether through the rise of premiumization, non-alcoholic options, or Gen Z’s thoughtful approach to drinking, brands must navigate a landscape that prioritizes moderation, choice, and authenticity. As these trends continue to evolve, industry leaders will need to remain agile in meeting consumer expectations.