Interestingly, while the global alcohol market is facing a downturn, recent insights indicate that Gen Z adults are actually increasing their drinking habits. According to data from IWSR, which provides analytics, the consumer base of Gen Z (those of legal drinking age to 27) rose from 66% in April 2023 to 73% in March 2025. This suggests these young adults haven’t really adjusted their behaviors in response to earlier assumptions about health trends.
“We’ve seen a notable rise in alcohol consumption among LDA+ Gen Z adults since the low recorded in April 2023, indicating a resurgence in social outings and spending,” experts noted. It seems this group is challenging the idea that they should simply give up alcohol altogether.
Research shows that the drop in alcohol consumption might not be tied to cultural shifts or economic stressors as previously thought. In fact, many in this generation are openly stating they’re choosing to drink more.
And it’s not just Americans; the drinking trends among Gen Z are up globally. IWSR reported a rise in participation among U.S. Gen Z from 46% to 70% in the same timeframe. In the UK, participation jumped from 66% to 76%, while in India, it climbed from 60% to 70%, and in Australia, it surged from 61% to 83%.
It was previously believed that this generation was responsible for a decline in alcohol sales, but new findings present a different picture. With economic growth and more young adults entering the job market, the relationship between income and alcohol consumption seems clear.
Experts pointed out that alcohol intake often correlates with disposable income, and as Gen Z matures during this cost of living crisis, they are increasingly opting to drink out. “As they advance in their careers, more of them will have more to spend,” they commented, suggesting that as income levels rise, so will their drinking frequency.
The takeaway? The fluctuations in the alcohol industry may be more cyclical than many have assumed, rejuvenated by the increased participation of Gen Z in the workforce.
