Gen Z drinking more alcohol than before, challenging long-held industry assumptions about youth habits

Despite taking blame for the alcohol industry's global slump, new data reveals that Gen Z adults are actually drinking more – not less – than before. 

According to drinks data and analytics provider IWSR, zoomers ranging from legal drinking age to age 27 (LDA+) increased their alcohol consumption from 66% in April 2023 to 73% in March 2025, indicating they haven't changed their habits as a result of healthy lifestyles or cultural trends as initially suspected.

"Alcohol usage among LDA+ 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," Richard Halstead, Consumer Insights COO, said per a press release on the findings.

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The findings suggest that lower alcohol consumption seen in recent years may have been less about cultural shifts and more about financial constraints. In fact, the members of the generation were most likely to agree with the statement, "I am actively choosing to drink more."

Zoomers in the U.S. aren't alone either. In addition to participation rates among American Gen-Zers rising from 46% to 70% between April 2023 and March 2025, respectively, IWSR reports drinking rates are rising in other countries.

In the United Kingdom, Gen Z alcohol participation rose from 66% to 76%. In India, the number climbed from 60% to 70% and, in Australia, the percentage went from 61% to 83%.

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Halstead said Gen Z's behavior has large economic implications. Meaning, as more young adults become established in the workplace and mitigate their cost-of-living concerns, their alcohol consumption tends to respond accordingly.

"We know that beverage alcohol consumption correlates with disposable income, and Gen Z came of age during a cost-of-living crisis. Rising prices have been especially acute in bars and restaurants – places that appeal most to Gen Z drinkers," he said.

"With every year that passes, more Gen Z drinkers are entering the workforce, and those already in the workforce are typically earning more. I think we should expect that, as their incomes rise, they will drink more often – just as Millennials did before them."

He added that the findings suggest the industry's decline is more "cyclical" than longstanding.