Gen Z is Drinking Less Alcohol: Shift in Consumer Behavior Allows Brands to Steal the Nightlife Spotlight
- Julianne Elise Beffa, Public Relations and Partnership Director
- December 30, 2024
In recent years, a significant cultural shift has emerged as Gen-Z consumers, who are now ages 12-27, embrace health-conscious and mindful lifestyles. This demographic is not only changing the way we view social activities but is also redefining the nightlife landscape. Pre Gen-Z, alcohol brands were the dominant industry in nightlife. Celebrity alcohol brands popped up left and right and alcohol sponsored activations became commonplace.
Now, according to Eventbrite, 44% of Gen Z actively seeks out “sober-friendly” nightlife events, such as alcohol-free parties, wellness raves, and mocktail bars (Eventbrite, 2023). Studies show that Gen Z is drinking less alcohol than previous generations and this trend has sparked a wave of new opportunities for brands looking to capture their attention.
Gen Z is more likely to abstain from alcohol than older generations, with about 26% of adults aged 16-24 reporting that they don’t drink at all, compared to 15% of Millennials (ONS UK, 2022).
Non-Alcoholic Brands Making a Splash
Research indicates that a substantial portion of Gen Z is opting for non-alcoholic beverages. Sales of non-alcoholic beverages are growing rapidly, with the market for non-alcoholic spirits increasing by 113% in recent years (NielsenIQ, 2022). Non-alcoholic brands have crossed into new industries such as Athletic Brewing Co.’s non-alcoholic beer targeted at sports fans and Katy Perry’s De Soi Apéritifs targeting pop fans. These brands piggy backed off the Gen-Z trend of drinking less and capitalized on the latest fad.
Books such as “The Dry Challenge” and “Going Dry” by Hilary Sheinbaum highlight the health benefits of sobriety and amplify the sober-curious trend among Gen-Z. Influencers such as Meg Lee and Dave Wilson have gained social media popularity, further glamorizing not drinking among this key generational cohort. According to Ipsos, Gen Z consumers are 3 times more likely to opt for non-alcoholic alternatives during social outings compared to previous generations (Ipsos, 2023).
As drinking less becomes the norm, non-alcoholic social experiences are also evolving. Events and gatherings are increasingly focusing on inclusivity, offering a wide range of non-alcoholic options. 59% of Gen Z values immersive experiences like themed parties, live performances, or pop-up events over traditional drinking-focused environments (Eventbrite, 2023). This shift allows brands to craft unique experiences that resonate with Gen Z. For example, Listen Bar hosts alcohol-free pop-up bars all over the world with brands like H&M and celebs like Snoop Dog and Emily Ratajkowski in attendance. Alcohol and drug free dance parties are taking place, and communities like Sober Black Girls Club have gained popularity.
Creating a New Brand Experience
Now that nightlife is shifting from being alcohol-centric, brands outside of the alcohol industry can start filling the gaps. 91% of consumers report being more likely to purchase from a brand after engaging in an activation and nightlife venues are the perfect place to host (ATN Talent Site, 2024). Fashion brands can join the party by partnering with influencers and having them dress up in their clothing, bringing viewers through their styling session before a night out. Beauty brands can follow suit.
Fast food chains like McDonald’s, Burger King and Wendy’s can target club goers as the perfect pre-game, late night or hangover meal. Fast food brands also can do a pop-up in a nightclub with fan favorites or a new menu item available at the venue itself. According to a study by ATN Talent Site, 64% of consumers maintain a positive impression of a brand for a month or longer after participating in a brand activation (ATN Talent Site, 2024).
Chase recently partnered with Live Nation to provide a VIP concert viewing experience for users and Lyft provided discounts to concert attendees. Camera brands like FujiFilm can gift influencers and encourage them to take photos on their night out and Rover can launch a campaign for dog walkers during their consumers nights out.
While Gen-Z drinking less significantly impacts the alcohol industry, it also opens up market share in the nightlife industry by allowing other brands to step in. With 26% of Gen-Z not drinking alcohol at all, the sky’s the limit with creativity in the Gen-Z nightlife scene (ONS UK, 2022). Companies that embrace this cultural transformation will not only attract a loyal customer base but also contribute to a broader shift in how society perceives alcohol consumption.
Ready to position your brand in front of changing nightlife consumers? Let’s talk.
