Insights in Five: Why Moderation Is Key for Millenial and Gen Z Drinkers

Insights in Five:

Why Moderation Is Key for Millennial and Gen Z Drinkers

A Suzy Micro Report

June 2022

Insights in Five:

Why Moderation Is Key for Millennial and Gen Z Drinkers Gen Z and Millennials have a reputation for disrupting industries. Alcohol and spirits is yet another category that these two generations are changing, thanks to their preference for lower alcohol by volume (ABV) or even foregoing alcohol altogether. So what exactly are Gen Z and Millennials choosing when it comes to their beverage choices?

Nearly a third (23%) of Gen Z respondents said they never drink alcohol or spirits compared to 17% of Millennials.

23%

17%

59% Gen Z

57% Millennial

43% Gen Z

TAKING A DEEPER LOOK: Both generations can agree, however, on cutting back on alcohol consumption. A full third (30%) of Zoomers and 28% of Millennials had less than one drink a week.

44%

These generations have similar preferences as well and currently consume:

47%

Spirits, like rum, vodka, tequila, etc

45%

44%

Millennial

Gen Z

Domestic beer

40% Millennial

Hard seltzer

The beverages Gen Z and Millennials are most interested in consuming are:

44% Gen Z

48% Millennial

46%

47%

Gen Z

Millennial

35%

41% Millennial

Gen Z

Both Gen Z (44%) and Millennials (47%) are interested in reduced ABV beverages (between 1.2 and 5.5%).

Natural wine

Canned cocktails

Hard coffee

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The top drinks Gen Z and Millennials consume to replace alcohol are:

22% Gen Z

Soda

20%

Millennials

22% Gen Z

Water

17%

Millennials

12% Gen Z

Coffee

16%

Millennials

Key Takeaways Novelty Over Quantity With Millennials and Zoomers drinking less overall, they seem to be getting the most flavor (not ABV) bang for their buck. Some of the beverages these generations were most interested in trying are canned cocktails, hard coffee and tea, and even hard kombucha. The desire for beverages that go beyond beer, wine, and spirits opens the door for many beverage brands to innovate.

Nonalcoholic Alcohols Have Low Adoption In our research, neither Gen Z or Millennials were that interested in low ABV (between 0.05 and 1.2%). There also wasn’t a ton of interest in nonalcoholic beer, wine, or spirits. When these generations want to drink, they’re going to drink the real thing. And when they're skipping the hard stuff, these generations like basic beverages.

Flip the Script Just as many beverage brands are creating partnerships or alcoholic versions of their top products, alcohol and spirits brands may want to start innovating to reach nondrinkers. Instead of nonalcoholic beer, wine, and seltzer, brands can consider canned mocktails, sparkling seltzers, or even coffee drinks.

Finally, brands can create unique and novel soda flavors.

Bottom Line: The Generation(s) of Sobriety are here. To reach them, alcohol and spirits brands should consider innovative and novel products to drive trial.