Sep 11, 2024
The generation reaching the legal age for consumption of alcohol is drinking less than older age groups, but the reasons behind this trend are contentious.
In August 2023, Gallup found that 62% of adults under the age of 35 say they drink, down from 72% two decades ago.
But is the move to lower alcohol consumption due to higher consciousness about health and lifestyle or is it rooted in the current economic circumstances?
The evidence is conflicted. Sober socialising
A Mintel report earlier this year found that British consumers aged 20-24 “are almost half as likely to prioritise spending on alcoholic drinks for the home than consumers aged over 75”.
This, it said, “suggests that a significant number of Gen Z are shifting their focus away from drinking alcohol, both inside and outside the home, and opting instead for what is called sober socialising.
Today, about a third of those aged 18-24 abstain from alcohol, but those who do drink tend to do so “primarily as a treat, to relax, or to mark a special occasion”, the survey found.
Almost two-thirds of consumers aged 18-24 have said that they “worry about the emotional impact of alcohol”, while a similar proportion reported that they would like to learn more about drinking mindfully.
The conclusion, says Mintel, is that with mental health being a priority for many, Gen Z “has honed in on reducing their alcohol intake as a way to manage their emotional wellbeing and mindfulness”.
Around a quarter of Gen Z consumers reported that they choose low- and no-alcohol drinks because of their lower calorie content or due to added functional benefits (such as prebiotics and vitamins).
With Gen Zers being drawn to non-alcoholic drinks due to potential health benefits at a far greater rate than other age groups, it is clear that many young people perceive nutrition to be one of the primary benefits of “sober curiosity”.
Social media
There is also a wider factor at play. Because much more personal contact than previously among the young takes place over social media rather than by physical presence, there is reduced need for meeting in bars, clubs or restaurants and thus lower consumption. That is supported by research from Carnegie Mellon University published by Nature Mental Health.
It showed adults under 30 consuming less alcohol compared to before the COVID-19 pandemic, adding to evidence that found Gen Z’s drinking habits have affected alcohol brands, causing some to shift into no- and low-alcoholic drinks.
During and after the pandemic, participants, on average, consumed 12.8 fewer alcoholic drinks a month than before the contagion.
“The pandemic was really hard on a lot of people, but for this group of young adults …. the pandemic seems to have had a long-term positive effect,” said Kasey Creswell, lead author and associate professor of psychology at Carnegie Mellon University.
But as evidence mounts of consumers, especially in the US, moving either towards abstinence or lower alcohol products such as beer, there is also a feeling that they are doing so in resistance to pricing as much as health concerns. Growing with ageing
Wine drinking grows with ageing, and on average, wine and spirits are more expensive per unit than beer.
Lawson Whiting, the CEO of Brown Forman, distiller of the iconic Jack Daniels family of bourbons, thinks that price is a major factor today and his company has opted over the past 12 months for more gradual rises of 3% or so at a time to cushion the blow to consumers.
But he is certain that price is influencing attitudes among younger consumers.
“We have seen some research [he did not specify it] that has shown that sort of 21 to 24-year-olds, 21- to 25-year-olds are drinking a little bit less”, he said in an interview reported on X last week.
“People have thrown out the conjecture that they [Gen Z] want to be healthier, but I’m not really buying that so much either.”
It’s the 21- to 25-year old, they don’t have the disposable income. They’re getting their first jobs, whatever it might be, and they’re pinched.
“When inflation comes up, you’re at your first entry-level salary, all of a sudden, everything just seems more expensive,” Whiting said. Source: The Drinks Business, Ron Emler
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