In recent years, a noticeable shift has occurred in the drinking habits of Gen Z, a trend that is reshaping the alcohol industry and opening doors for beverage brands.
Why Gen Z is Drinking Less in the UK and How Alcohol Brands Can Stay Relevant
In recent years, a noticeable shift has occurred in the drinking habits of Gen Z, a trend that is reshaping the alcohol industry and opening doors for beverage brands. Gen Zs are drinking less alcohol compared to previous generations, preferring quality over quantity and prioritising their health and wellness. Popularity of sober activities has risen, including social media content promoting alcohol-free fun and sober bars popping up around London. This change presents both challenges and opportunities for brands in the alcohol industry, compelling them to rethink their strategies and adapt to the evolving preferences of this influential demographic.
The Decline in Alcohol Consumption
Gen Z’s reduced alcohol consumption can be attributed to several key factors:
Health Consciousness
Insight: Gen Z is highly conscious of their health and well-being. They are more informed about the negative effects of excessive alcohol consumption on physical and mental health and are making lifestyle choices that align with their wellness goals.
Solution: Investing in innovation, specifically No and Low alternatives will be key in capturing consumers who wish still engage in social alcohol consumption, without the negative effects.
Brands doing this well:
AB in Bev offer Low or No alternatives to many of their products, and, according to Clara Ludmir for Forbes, the company aims for its no and low beers to account for a fifth of their sales by 2025.
Quality Over Quantity:
Insight: Unlike previous generations that may have focused on quantity, Gen Z values the quality and authenticity of their drinking experiences. They are willing to pay more for premium products that offer a unique and elevated experience.
Solution: Focus on promoting unique, good quality products rather than the overconsumption of cheaper alternatives. Brands can do this by experimenting with flavours and promoting the overall drinking experience.
Brands doing this well:
AU Vodka have a range of innovative vodka flavours including RTD cans which create an occasion around the drinking experience. Their packaging reflects the premium status of the product.
Social Media Influence:
Insight: Social media plays a significant role in shaping Gen Z’s behaviours and purchase habits. The rise of health-conscious influencers, and general protection of image encourages much of this generation to cut-down their alcohol consumption.
Solution: Promote healthy-consumption of your products through micro and macro influencers who authentically promote their healthy lifestyles alongside drinking.
Brands doing this well:
Gordon’s recently partnered with Maya Jama to promote their Pink Gin. A celeb known for her beauty, skincare and fit physique is the perfect brand ambassador.
Moderation is Key
It’s important to note that most of the decline in alcohol consumption is attributed to drinking in moderation, rather than blanket abstinence. So, alcohol brands who focus on the wider experience around their products will do well to stay front-of-mind and create a wider connection with customers.
Brands doing this well:
Joy Wines say goodbye to overcomplicated wine consumption, and hello to joyous occasions shared with friends, promoting the wider experience with their own playlists tailored to their products.
The Experience Economy
Gen Z’s preferences are also heavily influenced by the experience economy. They prioritise experiences over material possessions and seek out activities that offer memorable and shareable moments. This trend is evident in their drinking habits, where the focus is on the social and experiential aspects of consuming alcohol rather than the act itself.
Experiential Drinking
Gen Z prefers environments that provide a unique and engaging experience. This includes trendy cocktail bars, themed events, and interactive experiences that go beyond just drinking. Think immersive activities like Flight Club and VR shooting. Or physical outings like Axe throwing and go-carting. These experiences are enjoyed with very moderate if any alcohol consumption and are growing in popularity.
Brands doing this well?
Heineken: This brand have experiential bars including their very own bar at Gravity, Stratford Westfield (which happens to be one of our Activities Network partners!)
There for the Cultural Moments
Sports sponsorships, TV sponsorships and venue partnerships can place your brand front-and-centre at the biggest events of the year, including the F1 and the Euros.
Who’s doing this well?
Heineken (again!). They make up for the largest alcohol investment in professional sports partnerships with 25 active deals including sponsorship of Formula One with their 0.0 product.
Social Sharing
The desire to share experiences on social media platforms means that Gen Z is drawn to visually appealing and Instagram-worthy moments. Brands that create visually stunning and shareable experiences can capture their attention and loyalty.
Who’s doing this well?
Aperol Spritz UK on Instagram is all about storytelling and creating memories. They create moments perfect for social sharing like the Aperidisco – am Aperol themed musical occasion that’s currently travelling the UK.
Adapting to Gen Z’s Preferences
To effectively engage with Gen Z, alcohol brands need to embrace their desire for experiences and social sharing. Here are some strategies:
Innovative Products
Develop unique and high-quality products that cater to Gen Z’s taste for premium experiences. This could include craft cocktails, low-alcohol or alcohol-free options, and beverages with natural ingredients.
Engaging Experiences
Create immersive and interactive experiences that resonate with Gen Z’s desire for memorable moments. Pop-up events, brand collaborations, and themed parties can help foster a deeper connection with this demographic. They want to feel valued for their loyalty and purchase- offering exclusive rewards and content help to make them feel appreciated.
Alternatives
Most if not all alcohol brands have either low-alcohol or 0% alternatives to their products. Offering these products can help your brand to stay relevant even when your clientele forego the alcoholic option. Providing mixers and even low/no alcohol content like mocktail recipes work.
Partnerships
Why not partner with an event space, or an organisation that promotes moderate drinking? Or with a food company, like Heinz x Absolut’s pasta sauce which inspir
