Beverage Dynamics Spring 2025 | Page 13

now and then. Of the 19 % of Gen Z not drinking any alcohol, 52 % are alcohol-free because they just don’ t want to drink alcohol. N / A beers are appealing to Gen Z because they allow for moderation without disrupting their lifestyle.”
GENERATIONAL FACTORS
Timing is a huge factor with Gen Z. Perhaps more than any other age group, they have been shaped by Covid−19. The pandemic and lockdowns struck during their formidable years in high school, college and early 20s.
“ Gen Z( 21 +) came of age during Covid, shaping lower social alcohol exposure,” says Zach Poelma, SVP of Supplier Strategy & Insights at Southern Glazers.
In other words, when you did not spend your early 20s in bars and restaurants drinking with friends, you feel less pressure to consume alcohol now.
Agreeing with this take is Justin Pincus, managing director of QuestBrand by the Harris Poll:“ Gen Z approaches alcohol as a conscious, situational choice rather than a default. They are gravitating toward moderation, favoring RTDs, lower-ABV options, and premium products they buy less frequently but feel aligned with. This mindset is shaped in part by Covidera socialization, which disrupted traditional bar culture and normalized smaller, more intentional gatherings, alongside higher anxiety levels and a stronger focus on mental and physical wellness. Alcohol is no longer assumed; it is a choice, and brands have to earn that choice through relevance, trust and value.”
Pincus brings up an important point about Gen Z: They are an anxious generation. Raised by constant self-sharing and doomscrolling on social media, and exacerbated by the pandemic and other recent troubling geopolitical events, Gen Z is very self-conscious and nervous. And alcohol is not exactly the cure for anxiety. Much the opposite, Gen Zers often lament the“ hangxiety” of alcohol: the elevated anxiety they feel during a hangover.
Which is partly why that generation prefers the calm of cannabis.
“ Cannabis and THC beverages are emerging as alternatives, seen as more functional and controllable ways to relax or socialize without hangovers or health risks,” says Poelma.“ Cannabis and THC beverages are redefining‘ social drinking’ for Gen Z, offering functionality. However, their long-term adoption will also depend on how laws evolve.”
This last point is important, given the recent closing of the loophole in the 2018 Farm Bill that allowed for nationally distributed THC drinks( as discussed elsewhere in this issue).
Gen Z also came of age as recreational cannabis laws passed in states across the country. Thus, younger Americans are more destigmatized to THC than older generations.
Additionally, Gen Zers believe pot is a healthier alternative to alcohol. Whether or not that is true, it is relevant in terms of consumer trends. The youngest LDA generation, in general, is health focused.
“ There’ s a lot of misconceptions about Gen Z with the idea of them being labeled the‘ sober generation’ and that they don’ t drink. In reality, what we are seeing is that they’ re drinking differently, not disengaging altogether.”
– Jay Needham, Global Senior Brand Director for Tequila Cazadores & Agave
“ Health and mental wellness are central to how this generation approaches alcohol, with growing awareness of its impact on sleep, anxiety and productivity,” says Tanya Cohn, Marketing Director for the Lucas Bols Non Alcoholic Portfolio.“ This is a longterm buying pattern, not a passing trend. Gen Z is forming drinking habits around flexibility and moderation from the outset, which is fundamentally different from previous generations.”
Many in the industry have pointed to this as a defining feature for Gen Z.
“ They prefer spirits with fewer additives, low sugar and reduced impact on the body,” says Poelma.
Unlike Millennials, Gen Z has hardly known a time without ubiquitous internet and social media. They rely on TikTok and Instagram for most of their information.
“ Gen Z expects to discover prod- www. beveragedynamics. com Spring 2026 • Beverage Dynamics 13