Who are Gen Z?
Those from Gen Z are the newest to reach the legal drinking age, and while a considerable amount of this generation is still under 21, they make up 6% of total BevAl buyers. In the next 10 years, millions of consumers will enter the BevAl space from Gen Z, bringing forward diverse voices and socially conscious values.
By 2025, 62% of the global population will be millennials or younger1—so it’s crucial to think ahead and plan for this new age of consumers. To get started, consider:
- Where do Gen Z seek knowledge? This generation relies on newer outlets for information, so think beyond just the highest-performing sales channels and where you can really influence decision-making.
- This generation is highly aware of the impact their consumption patterns have on our world. In turn, many are growing more value-driven and seeking products with purpose. Brands with a clear mission and strong integrity will be on track to capturing Gen Z’s attention.
What are Gen Z Drinking?
Gen Z (21+) are well versed in experimenting with new products and finding what they like. In a world of increasing variety, Gen Z (21+) will align the products they buy with their own personal values and preferences:
- Prefer flavor forward options2
- Embrace better-for-you products like low alcohol, no alcohol, and hard kombucha.2
- Tend to consume alcohol in social settings and group gatherings; ready-to-drinks (RTDs), flavored malt beverages (FMBs), and hard seltzers are preferred choices—think cocktails in a can, hard lemonade, and spiked iced tea. 2
- Hard seltzers top the rankings with 34% of Gen Z (21+) saying they lean towards these when purchasing alcohol.2
Where are Gen Z Buying?
While Gen Z (21+) are the most immersed in our digital world, they rely heavily on personal influence when selecting what alcoholic products to purchase. 28% say they consider the opinions and suggestions of family and friends when making a BevAl purchase, outweighing other factors2. Social media has somewhat of an influence, but Gen Z (21+) still predominantly purchase through traditional channels:
- Brick & mortar drives sales for this gen—with grocery holding 46% of channel share—but Gen Z (21+) typically spends less per transaction since they possess lower discretionary income than older gens.2
- While social media is a huge driving force for this generation across the board, Gen Z (21+) say that social channels aren’t a huge influence on what alcohol they buy, but rather where they buy it.2
- When it comes to where, Gen Z (21+) over indexes at stores like Trader Joes, despite this brand investing no budget into any sort of marketing. This is likely due to the rise of influencer culture as products regularly trend or “go viral” on social media.2
How are Gen Z Different?
Gen Z (21+) lead the charge toward inclusivity, social justice, and embrace industry-defining trends more than other generations:
- A year ago, 47% of Gen Z (21+) said they’d never had an alcoholic drink – that number is now down to 45%. Some in this generation are experimenting with drinking, yet still considerably less than others. Only 36% of millennials say they’ve never tried an alcoholic beverage.2
- More members of this generation are growing health conscious and focused, likely contributing to the increasing number of non-alcoholic product seekers. Alcohol-free beverages are a good solution to avoiding social pressure or the feeling of being left out—however, many may enter the BevAl space by way of non-alcoholic product lines.2
- As mentioned, social justice and inclusivity are vital to winning Gen Z (21+). 34% of this generation agree they are more likely to purchase from a brand that openly supports LGBTQIA+ rights and that climbs to 46% if they support racial inclusivity.2
Capturing the needs of Gen Z (21+)
For success, consider the unique needs of an emerging and increasingly informed generation. Think beyond traditional patterns—where is this generation seeking information? What are the global issues we as a brand can take a stance on to connect with a values-led generation? These questions, along with the right insights, can give you The Full ViewTM into Gen Z.
Sources
US Census Bureau (2017 National Population Projections)
NIQ Generational Consumer Study on Gen Z, 2023
