Gen Z Shaping the Future of the Alcohol Industry
The alcohol industry has historically depended on younger generations becoming regular drinkers. However, Gen Z is changing this narrative, leaning toward a “sober and curious” lifestyle that prioritizes quality over quantity in their beverage choices.
A recent Gallup poll revealed that the proportion of U.S. adults consuming alcohol has dropped to 54%, marking the lowest in nearly a century. This decline in drinking rates is notable; back in 1997, over 60% of Americans reported drinking, but that figure fell to 58% in 2024 and now stands firmly at 54% in 2025.
It’s evident the alcohol market is facing significant challenges. Now, businesses must not only attract young customers but also persuade them that their offerings justify the cost.
Quality Over Quantity in Gen Z’s Drinking Habits
Ryan Close, the CEO of Bartesian, has observed a shift in consumer preferences. He suggests that rather than focusing on how much they drink, many young adults are seeking out higher-quality options. “I’m not going to argue with the data—yes, they’re probably drinking less. But I think it’s because they aspire to make better choices,” he shared.
Bartesian produces automatic cocktail machines that allow users to create drinks akin to those found in bars by simply using flavor capsules combined with their spirits. Close noted that prior to establishing his company, he noticed a trend: people were predominantly enjoying wine or beer at home, even as they ordered cocktails out. Many felt overwhelmed by the complexity of mixing cocktails and didn’t want to gather all the necessary ingredients. Even for someone with bartending experience like Close, crafting certain cocktails was a challenge.
He founded Bartesian to cater to a growing desire for refined cocktail experiences at home, emphasizing the use of real ingredients without any artificial additives. “We focus on real quality and freshness,” Close emphasized.
Concerns About Overproof Cocktails
The trend highlights a broader issue. Industry research from Nielsen IQ indicates that 67% of consumers of spirits and nearly half of average drinkers are willing to pay more for better quality. Close suggests this trend indicates a fundamental shift in drinking motivations. “Younger consumers seem to be more intentional about their choices,” he noted. They aren’t rejecting alcohol outright but gravitating toward more flavorful and occasionally enjoyed high-quality beverages.
Many members of Gen Z reached the legal drinking age during the pandemic when dining out became a challenge. Close indicated that as a result, these consumers have come to view their homes as extensions of restaurants and bars, driving the demand for premium drinking experiences at home.
He also mentioned that as cocktail prices rise, consumers are becoming increasingly selective in their spending. On a recent visit to New York City, he paid $24 for a martini that lacked essential ingredients like blue cheese and olives. “Why spend $75 for a martini when I can recreate it at home for a fraction of the price?” he questioned.
Ultimately, Close believes this trend doesn’t signal the end of bars and restaurants. Instead, it reflects a shift towards more thoughtful consumption, where individuals are cautious about what they drink, where they do it, and the overall value of their experiences.
