Gen Z Drinks After All

Gen Z has not quit drinking. They drink differently: more intentionally, less often in volume, and with a clear preference for quality. For alcohol brands, that is an opportunity, not a decline, especially for brands that sell well online and tell an honest story.

Is Gen Z really drinking less?

The data points both ways:

• Fewer young adults drink than 20 years ago. A 2023 Gallup survey found the share of adults under 35 who drink fell to 62% in 2021-2023, from 72% in 2001-2003 (Time).
• The post-pandemic drop was led by younger adults. A study of National Health Interview Survey data published in Annals of Internal Medicine found that any alcohol use declined from 2022 to 2024, particularly among Gen Z (Keck Medicine of USC via Newswise).
• Spending is shifting. The Bank of America Institute reports that alcohol's share of household budgets is near 40-year lows, and that Gen Z spending is growing faster on fitness and active hobbies than on bars (Bank of America Institute).
• Many say they don't drink at all. In a LendingTree survey, 53% of Gen Z respondents said they don't drink, the highest of any generation (NewsNation).

The counterpoint comes from the industry's own tracking. IWSR's 2026 report puts the drinking rate among legal-age Gen Z at 74%, up from 66% three years earlier and close to the 76% rate for all adults (Food Dive). The surveys measure different things and different age ranges, so they don't fully cancel out.

What is actually happening?

The trend all sources agree on is moderation. IWSR found that drinkers of every generation now average 3.9 drinks per occasion, down from 4.4. Gen Z is more intentional about what they drink, when and why, and they lean toward quality over quantity and premium over volume.

What does this mean for brands?

The brands that win with Gen Z meet them where they are:

• They discover brands on social media, so a consistent, authentic presence matters.
• They value transparency, so tell them how the product is made and who makes it.
• They expect a smooth digital experience, so make it easy to buy the bottle they just saw.
• They are less loyal to legacy brands, so a good story can win a first purchase.

Marketing to this audience has rules. Only reach people of legal drinking age, and check the industry age-audience standards (73.8% 21+ for spirits, 73.6% for beer) before running ads or creator partnerships.

How can emerging brands capture the opportunity?

More Gen Z consumers turn 21 every year, and they are digital natives. Brands that invest in their own online channel, social presence and authentic storytelling are in the best position to win them.

AccelPay, now part of Vesper Commerce, lets brands sell on their own site, with orders fulfilled by licensed retailers in 40+ states and same-day delivery through Gopuff, BevMo and DoorDash where product is stocked. See how AccelPay works and the Shopify apps we recommend for alcohol brands.

Updated October 22, 2026.