Younger people don’ t have a drinking problem; they have a marketing problem.
THE ALCOHOL INDUSTRY REMAINS
Resilient
History shows our industry doesn’ t stay down long when bouncing back from disruption.
by KYLE SWARTZ, KRYSTINA SKIBO AND MELISSA DOWLING
Economically, the alcohol industry is in a tricky spot. Covid−19 boom times, fueled by customers stocking up during the pandemic and diving deep into trendy categories like bourbon and tequila, are now years in the rearview. Consumer preferences have shifted significantly.
For one, the youngest, newest LDA generation seems wary of alcohol. Generation Z, by any measure, does not currently drink much. Rather, they consume cannabis. Known broadly as an anxious generation, they prefer the mellowness of THC over the effects of alcohol, with its potential for anxiety-inducing hangovers. Gen Z is still early in their careers, too, and thus watches their wallets closely, choosing more-affordable cannabis products over pricier alcohol.
The youngest LDA generation is also health conscious. They see THC as a“ healthier” alternative to alcohol. Moreover, Gen Z is far from the only cohort counting calories these days. One lasting effect from the Covid era is more consumers than ever focusing on their wellness. Dry January has exploded in popularity, with many people continuing the no-ABV habit beyond that sober month.
The rise of healthier lifestyles has also fueled the trend of GLP−1 drugs like Ozempic. Use of these products for everyday weight loss has become mainstream. Consumers on these drugs will drink significantly less, another modern issue affecting the alcohol industry’ s bottom line.
On and off tariffs from the federal government have also
www. beveragedynamics. com Fall 2025 • Beverage Dynamics 21