Gen Z’s Shift in Drinking Habits Challenges Alcohol Industry

The alcohol industry is experiencing a significant shift due to the preferences of Gen Z. This generation is adopting ‘sober-curious’ lifestyles, prompting the industry to focus on delivering higher-quality beverages. According to a Gallup poll, the proportion of U.S. adults consuming alcohol dropped to 54% in 2025, the lowest in nine decades. Historically, at least 60% of Americans reported drinking alcohol from 1997 to 2023. This decline presents a new challenge for the industry, which must now justify the price of their products to young customers.

Gen Z’s Drinking Evolution

Ryan Close, CEO of Bartesian, highlights a shift where consumers now prioritize quality over quantity in their drink choices. Close observes that this generation prefers exceptional beverage experiences rather than excessive or routine consumption. Bartesian offers an automated home cocktail machine using flavor capsules and user-supplied spirits, catering to those seeking bar-level cocktails at home with ease.

“I’m not gonna argue with the data, you know, they probably are drinking less alcohol. I think they’re drinking less, but with the expectation that ‘I want better,'” Close shared with Fox News Digital.

Close explained that most people had been consuming wine and beer at home despite favoring cocktails at bars and restaurants. He found that making cocktails was often perceived as challenging due to the need for specific ingredients. Bartesian addresses this by delivering premium cocktails with natural ingredients.

Industry Trends and Consumer Expectations

Research from NielsenIQ (NIQ) supports Close’s perspective, identifying trends towards premium experiences. Their report states that 67% of spirits drinkers and about half of all drinkers are willing to spend more on quality drinks. Close insists the trend extends beyond beverage choices, with Gen Z prioritizing shared experiences over mere consumption.

Bartesian users have the flexibility to choose the type of spirits and alcohol content, emphasizing the desire for customizable experiences. According to Close, Gen Z seeks intentional drinking characterized by lesser frequency but higher quality.

Changing Drinking Environments

The pandemic influenced Gen Z’s drinking behaviors, with many reaching legal drinking age during periods when traditional outlets were restricted. Close notes a growing tendency to view homes as extensions of social venues. Rising cocktail prices further encourage the creation of premium at-home experiences, driven by consumer selectiveness.

Close shared a personal anecdote illustrating this shift. In New York City, he paid $24 for a martini lacking blue cheese olives, a preferred garnish. In contrast, he can recreate similar drinks at home affordably.

Overall, the trend signifies a demand for deliberate choices in what to drink, where to drink, and the value associated with drinking experiences rather than replacing bars and restaurants completely.