Despite widespread cost-of-living pressures and a global trend towards alcohol moderation, younger legal-drinking-age consumers, particularly Gen Z, are increasingly re-engaging with alcohol, according to IWSR’s Bevtrac consumer sentiment tracker. Although overall spending on alcohol has declined across leading global markets, Gen Z’s participation has notably risen, challenging the belief that this generation is turning away from alcohol. Their consumption rates have returned to levels comparable to the general population, and they show a strong interest in trying different drink categories and going out more often than older cohorts.
The March 2025 survey found a mixed global picture. India and China remain positive in terms of consumer confidence, while Europe shows slight recovery. In contrast, sentiment is largely negative in North America and much of the Asia-Pacific region. Political uncertainty, especially in the US under the second Trump administration, has further eroded consumer confidence.
India stands out with strong growth across consumer sentiment, alcohol consumption, and spending, driven by affluent urban Millennials and Gen Zs who feel financially secure and are experimenting more with alcohol. Brazil follows a similar trend, especially among wealthier consumers who are expanding their drink choices, particularly in premium beer and spirits categories.
Premium beer is one area bucking the trend of declining premium wine and spirits. Its popularity is growing in markets like Brazil, France, and Spain, where medium and high-income drinkers are shifting their preferences towards high-end beer options.
While the broader alcohol market faces pressure from economic challenges and shifting habits, Gen Z’s renewed engagement and the growth in developing markets like India and Brazil suggest that targeted strategies can still drive momentum within the industry.
