A new report has busted the assumption that Gen Z abstain from alcohol, with research showing the participation gap between Gen Z of legal drinking age and the wider population has disappeared.

The report, The Consumer Trends Shaping Adult Beverages, features research from Ipsos and IWSR, commissioned by AB InBev.

It shows that total alcohol consumption volume remains more than 30% above 2000 levels, even as global per-capita consumption has declined in recent years.

According to IWSR’s twice yearly Bevtrac survey of consumer behaviour, the drinking rate among legal-age Gen Z consumers across 15 key markets has stabilised at 74%. This rate, up from 66% three years ago, is now nearly identical to the total adult population drinking rate of 76%.

More Gen Z legal-age drinkers also reported drinking cocktails in the past six months than any other generation (84%).

The results are at odds with a Flinders University study published earlier this year that analysed more than two decades of data from over 23,000 Australians.

It showed that younger generations – particularly Generation Z – are turning away from alcohol at unprecedented rates.

Lead author Dr Gianluca Di Censo said: “Gen Z are nearly 20 times more likely to choose not to drink alcohol compared to Baby Boomers, even after adjusting for sociodemographic factors. This isn’t just a phase; it appears to be a sustained change in behaviour.”

The key trends in drinks

As the industry prepares to celebrate International Beer Day on August 7, the new research from Ipsos and IWSR has offered insights into evolving drinks trends around the world.

It identifies key trends shaping the future of the category:

• Moderation – Consumers are seeking greater balance and control, driving growth in no- and low-alcohol options and more mindful drinking choices.
• Experience economy – Social connection remains a primary motivation for drinking, with consumers prioritizing memorable experiences and meaningful occasions.
• Premium & affordability – Even amid economic pressures, consumers continue to invest in products and experiences that deliver genuine value.
• Flavorus & convenience – Innovation, particularly in ready-to-drink beverages, is driving growth and attracting consumers seeking variety and convenience.
• Trust & familiarity – Established brands continue to hold an advantage as consumers look for credibility and reassurance in an increasingly complex marketplace.

The findings also highlight the growing strength of beer and beyond beer (including RTD brands such as Cutwater) categories, which now account for more than half of total alcohol servings globally, supported by consumer demand for convenience, affordability and flavour exploration.

As International Beer Day celebrates beer’s role in bringing people together around the world, the researchers said the results underscore a simple reality: consumers’ preferences may be evolving, but the desire for connection, quality experiences and trusted brands remains stronger than ever.

“Consumers’ preferences are evolving, but the alcohol category remains resilient and deeply embedded in social and cultural occasions,” said Jennifer Bender, Global Head of Trends & Foresight, Ipsos. “This research provides a clear view of the forces shaping future consumption and the opportunities emerging as consumer expectations continue to evolve.”

“Despite recent challenges, the findings reinforce the resilience of the global beverage alcohol category,” said Marten Lodewijks, IWSR Managing Director & President. “The research shows continued participation, with consumers increasingly seeking products and experiences that align with their evolving lifestyles.”

View the full report here.