Gen Z Accounted for Just 4% of U.S. Alcohol Sales in 2025

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Despite years of industry focus on younger drinkers, Gen Z accounted for just 4% of U.S. alcohol sales in 2025, according to new data from market research firm Circana, as reported Thursday by Brewbound.

The findings reflect the 52-week period ending Dec. 28, 2025. The data shows that older consumers continue to drive the bulk of alcohol spending in the U.S., with Gen X and baby boomers responsible for a combined 70% of sales. Millennials accounted for 25%.

Of course, part of the reason for this trend is owed to the fact that many Gen Z-ers are not yet 21 and thus cannot legally purchase alcohol. While the oldest of the generation were born in 1997, the youngest were born in 2012, making them just 14 years old this year. Thus, large share of the generation has limited influence on alcohol trends.

Among Gen Z consumers who are 21 and older, preferences skew toward bolder flavors and categories such as hard cider, Mexican beer imports, ready-to-drink cocktails and sparkling wine, according to Cara Piotrowski, senior director of sales and client insights for Constellation Brands at Circana. Millennials show similar behavior, while also over-indexing in tequila and flavored malt beverages, she said.

Older generations continue to favor more established, traditional categories. Gen X consumers lean toward domestic premium and super-premium beer, European imports, rum and whiskey. Baby boomers purchase a mix of domestic economy and premium beer, along with table wine, liqueurs, gin, rum, scotch and Cognac, according to the data.

Across age groups, Circana found ongoing movement toward higher-priced products. Super-premium beer accounted for 40.7% of total beer volume in 2025, up from 39.6% in 2023, while both premium and value segments were down. Similar shifts appeared in wine and spirits, though at a slower pace, with mid-range premium brands gaining ground.

Piotrowski told Brewbound that growth in ready-to-drink cocktails is also reshaping price competition, particularly as RTDs expand into price tiers that overlap with both traditional spirits and premium beer.

While overall alcohol volumes remain under pressure, Circana identified some areas of growth. High-ABV products rose 11% year over year, while non-alcoholic beverages increased 26%. Hemp-derived THC drinks also grew rapidly but are not replacing alcohol on a one-to-one basis, according to Circana analysts.

Karl Nemitz, director of sales and client insights at Circana, said consumer behavior shows alcohol and cannabis serve different occasions and needs. Alcohol remains more meal-focused and social, while cannabis use skews toward wellness and relaxation, he said.