Report Claims Gen Z May Be Drinking as Much — if Not More — Than Older Generations, Contrary to Popular Belief

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A report published by the International Wine and Spirits Record has tossed a wrench into the widespread belief that the younger generation is ditching alcohol.

According to research conducted in March 2025, Gen Z is slowly but surely regaining interest in liquor at a time when consumption is nearing a record low. IWSR is quick to note why growth has moved at a sluggish pace. Disposable income is under sustained pressure, trade tensions have impacted market confidence, and on-premise spending has struggled to regain its footing in the years after the COVID-19 pandemic. But data suggests that Gen Z consumers may be charting a different path, thanks in large part to a “broad interest in a repertoire of products.”

“Alcohol usage among LDA+ [legal drinking age] Gen Z adults has increased significantly from April 2023 lows, and there is evidence that the propensity to go out and spend more is recovering among this group – challenging the received wisdom that this generation is ‘abandoning’ alcohol,” said Richard Halstead, COO of Consumer Insights.

IWSR conducted its study in the world’s 15 leading spirits markets, among which, results varied significantly.

One of the biggest shifts appears to have taken place in the United States, where 70% of  Gen Z respondents said that they consumed alcohol over the past six months — up from 46% a little over two years prior. Within the same age cohort and time frame, participation in the UK reportedly rose from 66% to 76%, in Australia from 61% to 83% and in India from 60% to 70%. The study attributes the rise to a relaxed stance on sustained sobriety and “above-average” engagement with spirits.

There’s a lot happening within these statistics that remains unexplained. Though IWSR notes that premium beer is outperforming, the report doesn’t specify which types of liquor have proven particularly popular with Gen Z. Market trends suggest that vodka, tequila and ready-to-drink cocktails are likely at the forefront of the movement. But preferences are known to vary from country to country. India — singled out several times as a strong growth leader — has historically favored whiskey, which makes up over 60% of the nation’s annual liquor consumption. In Brazil, cachaça remains the reigning champion.

If the IWSR’s findings are correct, it would suggest that Gen Z isn’t being wooed by any particular brand, marketing strategy or seasonal trend, but rather by a broad reassessment of their drinking habits.

Were you to ask virtually anyone else in the industry, they’d paint a startlingly different picture. Numerous studies — including those published by IWSR in years past —  have suggested consumption among the Gen Z cohort has declined precipitously. Potential causes have been identified left and right. In an earnings call with analysts, Brown-Forman CEO Lawson Whiting recently blamed the downturn on weight-loss drugs and cannabis use. Asahi Breweries chief executive Atsushi Katsuki suggested that gaming and digital entertainment have driven drinkers away from on-premise spending. Others have pointed toward mounting health concerns and trending sobriety movements like Dry January.

There’s no denying that these factors have played a role in the industry’s growing pains over the past few years. But preferences continue to ebb and flow, oftentimes faster than any one study can keep track of.

Kaleigh Theriault, director of thought leadership for the Beverage Alcohol Vertical at NielsenIQ, argues that moderation doesn’t have to be a zero-sum game for spirits makers. Premium liquor options, particularly those with an emphasis on transparency and cohort-specific branding, continue to be popular with a demographic that’s simultaneously trading in for mocktails and non-alcoholic alternatives. Yes, it’s something of a paradox. But it seems fitting for a generation in flux, especially considering that the youngest Gen Z consumer is still years away from their first legal sip of alcohol.

“They are drinking. They’re just not drinking in the same way that other generations came of legal drinking age,” Theriault explains. “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.”

Theriault continues, “Gen Z isn’t the generation that’s going to open up and mix a drink on a random after-their-work day. 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.”