A new report by IWSR has found that moderation and cost-of-living concerns are causing shifts in behaviour in the on-premise, with consumers reducing their intake and seeking value in both drink prices and meaningful experiences.

The top trends include the rise of alternative spaces for socialising, a shift to daytime drinking occasions and a switch to smaller serves.

According to IWSR Bevtrac consumer research conducted in September 2025, on-trade visits in most of the 15 key global markets declined year-on-year. People are also consuming fewer serves and fewer categories per occasion.

Trend forecaster WGSN said the on-premise was facing increased competition, both from at-home occasions driven by affordability, and the rise of alternative spaces for socialising.

WGSN director of food and drink Jennifer Creevy said: “At-home occasions are driven by affordability but there is still an opportunity here for brand owners as those consumers are becoming more creative with their at-home bars, seeking newness, quality pours, status-led sips and other experiential elements to show off their skills.”

In terms of alternative spaces, WGSN has forecast rising interest in spaces for socialising outside of the traditional on-premise, including cafes, bakeries, hair salons and book shops.

“Some consumers, particularly the younger Gen Zs, are seeking occasions with intention, whether it’s meeting up around a shared interest or sports group, and these alternative spaces are facilitating this trend,” Creevy said.

“This is something the traditional on-trade can tap into, it’s about reframing the offer. Consumers should see these venues as facilitating their needs, not simply a place for a drink anymore.”

Rising daytime drinking trend

IWSR’s innovation tracker Radius points out the shift from late-night to daytime drinking occasions.

As nightlife is increasingly perceived as too expensive, loud and depleting across generations, consumers are prioritising event and occasion formats that protect both the moment and the next day.

“In practice, this shows up as brunch culture, day-clubbing and afternoon DJ sets, and drinks designed for lighter, longer sessions, such as ‘day-caps’ that are low-ABV, built for re-ordering and designed to sustain connection without tipping over into excess,” said Radius Editor Claudine Ben-Zenou.

WGSN says wellness is a key factor in terms of on-trade drinking and alcohol in general, across all demographics.

“Consumers are more health-conscious than ever and that is manifesting in several ways, including earlier drinking times, more intentional meet-ups and lower ABV sips,” said Creevy.

Value moves beyond price

IWSR said premiumisation was still present in the on-premise, but its meaning is being reframed. Consumers are looking to secure the quality and buzz they desire.

IWSR suggested ways to capture that spend could include:

• Smaller serves and mini-cocktails: There has been a surge in interest in smaller formats, which meet affordability concerns while encouraging exploration via multiple orders. The trend also taps into “mindful indulgence” and the prioritisation of quality over quantity.
• Emotional pay-off: Increasingly, it isn’t enough for a drink simply to be “premium”; instead, consumers want the entire experience to feel worth it, including packaging, expertise and quality of service.
• Storytelling: Leading bars are now using cocktail storytelling as a lever to drive premiumisation, creating immersive drinks menus and “drinking rituals”, rather than simple lists of serves.

Gen Z’s pivotal on-premise role

IWSR said Gen Z consumers are crucial to the future revival of the on-trade, with the cohort disproportionately engaged with the on-premise in regions including Australia.

Looking across the top 15 Bevtrac markets in September 2025, 39% of all consumers visited the on-trade on their last consumption occasion, versus 46% of the Gen Z age cohort.

IWSR Managing Director and President Marten Lodewijks said: “Gen Z isn’t simply ‘drinking less’, he says. ‘Instead, the story is one of selectivity and intentionality, consuming fewer categories per occasion, aligning with the ‘edited occasion’ pattern we see more broadly in the on-trade.

“With this generational influence, Gen Z is helping to set the tone for earlier, lighter and more intentional drinking occasions now and in the future.”

Learn more here.

IWSR’s On-Trade value and volume data for FY25 will be released at the end of May.