Gen Z Leads The Charge: Why They’re Drinking Less in 2025?

In recent years, Americans have been making significant shifts in their drinking habits, with younger generations leading the way. 

This change, accelerated by various health-conscious movements, is now reaching a pivotal moment in 2025. While the alcohol industry has long been dominated by beer, spirits, and wine sales, younger consumers—especially those in Generation Z (ages 18-28)—are driving a movement toward moderation. 

According to a recent survey, nearly 65% of Gen Z plans to drink less in 2025, and 39% even intend to adopt a completely sober lifestyle. This growing trend poses both a challenge and an opportunity for food and drink companies. 

If you’re in the food and beverage formulation industry, understanding these trends is crucial for staying ahead of the curve. Keep reading to know more about it. 

The Changing Landscape of Alcohol Consumption

Over the years, the alcohol industry has been facing multiple challenges, from dry months like “Sober October” and “Dry January” to the rise of healthier alternatives such as non-alcoholic drinks. 

As we enter 2025, we see the acceleration of a cultural shift, especially among the younger generation. A key statistic shows that 49% of Americans plan to drink less in 2025, an increase from 41% in 2024. Gen Z is leading this charge, with an impressive 65% of them saying they will cut back on alcohol. 

These figures should raise some eyebrows among food and drink companies, as this generation’s preferences will shape the future of beverage consumption.

Why Is Gen Z Drinking Less?

There are several reasons why younger consumers are moving away from alcohol, and it’s important for food and drink formulation professionals to take note of these trends:

1. Health and Wellness: Gen Z is more health-conscious than previous generations. They prioritize fitness, mental well-being, and overall health. The rise of non-alcoholic options like NA beer, spirits, and wines aligns perfectly with their lifestyle choices.
   

2. Influence of Celebrities and Influencers: Gen Z is highly influenced by celebrities and influencers. With non-alcoholic drinks being endorsed by figures like Tom Holland, the trend is gaining momentum. More than 28% of Gen Z have already tried an alcohol-free drink endorsed by a celebrity or influencer, reflecting the penetration of celebrity influence.
   

3. The Sober-Curious Movement: Sober-curious refers to people who are experimenting with sobriety without a strict commitment. This trend has grown exponentially, and it’s clear that the beverage industry needs to adapt to this shift by offering options that cater to this curiosity, especially for those who still want to enjoy social settings without alcohol.

The Role of Non-Alcoholic Beverages

According to recent data, non-alcoholic beer, spirits, and wine saw a 27% increase in sales in 2024, with $829.2 million spent on these products. This is a clear indication that consumers are ready to embrace alternatives to traditional alcoholic drinks.

For food and drink companies, this trend offers an exciting opportunity to innovate in product development. Non-alcoholic formulations are no longer just a novelty; they’re becoming a staple in many households.

Companies that can tap into this market early will reap the benefits as more consumers seek healthier and more inclusive beverage options.

The Future of Food and Drink Formulation

As the trend toward moderation continues, it’s essential for food and drink companies to adapt their formulation strategies. Developing new non-alcoholic products, reducing alcohol content, or introducing lower-calorie options will help brands stay relevant.

Gen Z’s preference for healthier lifestyles offers a golden opportunity to create beverages that align with these values. By focusing on food and drink formulation that incorporates fewer artificial ingredients and caters to health-conscious consumers, companies can position themselves as leaders in this emerging market.

Conclusion:

2025 is shaping up to be a pivotal year for the beverage industry, with Gen Z driving a shift toward more mindful drinking habits. Food and drink formulation companies must embrace this change, focusing on creating healthier alternatives that align with the values of this generation. By doing so, they can tap into the growing demand for moderation and continue to thrive in a rapidly evolving market.