While consumers are spending less on alcohol across the world’s leading markets, thanks to a combination of increased moderation and the rising cost of living, new IWSR findings show Gen Z is bucking the trend.

Consumer research undertaken in March 2025 shows there has been a marked increase in alcohol participation levels among Gen Z consumers compared to two years ago.

In April 2023, 66% of Gen Z consumers in the top 15 markets said they had consumed alcohol in the past six months; in March 2025, this figure rose to 73%.

The trend is especially strong in a number of key markets: in the US, participation rates among Gen Z consumers have risen from 46% to 70% over the same timescale, with robust growth in the UK (participation up from 66% to 76%), India (up from 60% to 70%) and Australia (up from 61% to 83%).

“Alcohol usage among Gen Z adults has increased significantly from April 2023 lows, and there is evidence that the propensity to go out and spend more is recovering among this group – challenging the received wisdom that this generation is ‘abandoning’ alcohol,” said Consumer Insights COO Richard Halstead.

The research identified other Gen Z trends for beverage alcohol, including a greater willingness to explore and maintain wider repertoires among multiple drink categories; above-average engagement with spirits; a more relaxed stance on sustained moderation; and a greater inclination to frequent the on-trade.

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