Gen Z drives $830 billion decline in the global alcohol market

Changing habits among young people reshape the drinks industry and impact nightlife economies

The global alcohol market has lost $830 billion over the past four years, largely driven by declining consumption among Gen Z. Industry analysts say the shift reflects a deeper, structural change rather than a temporary trend.

According to a Bloomberg study published last year, which examined 50 of the world’s leading publicly listed beer, wine and spirits companies, the sector’s market value is now 46% below its record high reached in June 2021.

Younger generations are drinking less

The report links the downturn in the global alcohol market directly to changing habits among younger consumers. Health awareness, lifestyle balance and mindful choices are increasingly shaping how Gen Z engages with alcohol.

“There is a structural change taking place. People are drinking less,” said Sarah Simon, analyst at Morgan Stanley, in comments to Bloomberg.

As a result, expectations of a return to pre-pandemic growth levels have steadily faded across the industry.

Official data confirms rise in abstinence

Recent figures from the Health Survey for England support this trend. In 2024, 70% of non-drinkers were aged between 16 and 24, while the lowest share of non-drinkers was recorded among those aged 55 to 64.

The data also shows that 35% of people aged 16 to 24 identified as teetotal, marking a record level. By 2025, 24% of adults in England reported not drinking alcohol at all, up from 19% in 2022.

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Impact exceeds previous economic crises

For Laurence Whyatt, analyst at Barclays Plc, the scale of the decline in the global alcohol market is unprecedented.

“We’ve seen four times the impact of the financial crisis on alcohol consumption,” he said, also speaking to Bloomberg.

According to Whyatt, investors now view the slowdown as permanent rather than cyclical.

“The market believes there has been a structural shift, and that we are not going back to the growth rates seen in the past,” he added.

Nightlife economy feels the pressure

The Night Time Industries Association has warned that changing drinking habits are having a profound effect on the UK’s nightlife economy. Bars, clubs and venues are adjusting to lower alcohol-led revenues as consumer behaviour evolves.

While Gen Z is described as more health-conscious, the organisation notes that low-alcohol and alcohol-free options are gaining popularity, forcing venues to rethink their business models and experiences.

Sobriety gains ground in club culture

These changes are also visible within electronic music and club culture. DJs, artists and ravers are increasingly embracing sobriety or reduced drinking, prioritising mental clarity, performance and long-term wellbeing.

The shift suggests that nightlife experiences are being redefined. For a growing number of people, connection to music and atmosphere now outweighs alcohol consumption as the core of the night out.

[H/T Mixmag]