For years, the narrative around the global slowdown in alcohol consumption seemed settled: Generation Z was drinking less than any generation before it, forcing producers and bars to rethink their future. According to new research from IWSR, that assumption misses the real story. The sharpest decline is coming from Baby Boomers, while younger drinkers continue to embrace alcohol—just on different terms.
The Myth of the Sober Gen Z
The study examines drinking habits across 15 key markets, including the United States, Canada, Mexico, Brazil, the United Kingdom, France, Germany, Italy, Spain, China, India, Japan, Taiwan, Australia and South Africa.
Moderation has become a defining trend across all of them. The surprise lies in who is driving it. Baby Boomers are the only generation showing declines across participation, drinking frequency and consumption per occasion. Generation Z, by contrast, is becoming more engaged with alcohol as more consumers reach legal drinking age.
Why Baby Boomers Are Cutting Back
The findings reflect broader demographic shifts. Born between 1946 and 1964, Baby Boomers are now between 62 and 80 years old, and their drinking habits increasingly mirror changes in lifestyle rather than changing tastes.
“The moderation among Baby Boomers is driven by economic considerations as well as lifestyle changes, including health concerns and fewer opportunities to socialise,” says Marten Lodewijks, CEO and President of IWSR.
Overall consumption continues to decline, even though drinking occasions remain relatively stable. The most significant change comes from intensity: Boomers are consuming fewer drinks each time they do drink, a pattern particularly evident in Brazil, India and the United States.
The survey also highlights a different hierarchy of motivations. For Baby Boomers, the main reasons for drinking less are cost, fewer social occasions and moderation. Younger generations place moderation first, followed by lifestyle choices, with cost ranking third.
Generation Z Drinks Differently
Generation Z—those born between 1997 and 2012—continues to expand its share of alcohol consumers simply because more people are reaching legal drinking age. According to IWSR, Gen Z represented 13% of all alcohol consumers in March 2024; by March 2026, that figure had risen to 17%.
Digital entertainment may occupy much of their free time, says Lodewijks, but alcohol remains closely tied to social occasions. Cocktails, ready-to-drink beverages and non-alcoholic alternatives all play a role because they offer experiences that are social, inclusive and compatible with moderation.
Unlike Baby Boomers, whose drinking habits have traditionally centred on personal relaxation, Gen Z associates alcohol with shared experiences—from festivals and outdoor events to casual gatherings with friends. Flavour also outweighs alcohol strength when choosing what to drink, making cocktails and RTDs particularly attractive.
What the Industry Can Learn
For producers and hospitality operators, the implications differ by generation. Winning over Baby Boomers means reinforcing loyalty through quality, value and formats that support moderate consumption. Smaller serves and health-conscious positioning may resonate with older consumers balancing wellbeing and spending.
Engaging Generation Z requires a different strategy. Convenience, inclusivity and shareability have become essential attributes, particularly for RTDs. Products that connect with contemporary culture through distinctive flavours, bold packaging and meaningful partnerships are more likely to find a place at the social occasions where younger consumers choose to drink.
