5 Stats Behind the Gen Z Drink Trend That’s Not Going Away

The trend in non-alcoholic drinks started growing noticeably on a global scale in 2014, but as more Zoomers come of age, their tastes and preferences are dramatically spiking sales. A recent 2022 consumer report, issued by the leading alcohol ecommerce platform Drizly, highlights that 38% of Generation Z buyers are drinking more non-alcoholic beverages than in the previous year. Compare that to just 8% of Boomers, 15% of Gen X, and 25% of Gen Y.

Takeaway: Gen Z is more open and excited than previous generations to try new and innovative beverages — especially those that align to their values (more on that below).

Rising demand and lower barriers to market entry have also resulted in a huge increase in the variety of non-alcoholic products across all drink categories. Drizly reports a 166% increase in the total number of non-alcoholic products on its site compared to 2019. It’s unclear what came first, the chicken or the non-alcoholic strawberry-lime canned margarita, but what is clear is that Gen Z drinking habits are fueling the no-alcohol trend in a continuous loop of innovation and demand.

Takeaway: With so many new products on the market, it’s easier than ever to grab and hold Gen Z’s interest using a fresh mix of non-alcoholic drink choices.

Though the low-alcohol drinks market is significantly larger ($2.77 billion versus $331 million), recent Nielsen reports show that the market for non-alcoholic beverages has grown faster over the last year (+33.2%) compared to that of low-alcoholic beverages (+8.1%). With Gen Z spearheading the non-alcoholic drink trend, these numbers make sense. As a generation of digital natives, one of the core reasons for Gen Z’s declining alcohol consumption is risk aversion and a fear of having drunk behavior publicly broadcast on social media.

Takeaway: The no-alcohol drinks market is growing faster among Gen Z because it meets their unique need for safe, social drink experiences while still providing a ‘special occasion’ treat.

Though big-name brands are constantly releasing large-scale non-alcoholic offerings, the real innovation in the NA drink space can be found among independent beverage brands producing small-batch, craft, and flavored options. This appeals to a majority of Gen Zs who favor values-driven consumption, with a special affinity for transparency and authenticity — something that smaller brands often have working in their favor.

In this aspect, Gen Z is even more devoted to their causes than Millennials. A recent McKinsey study on the importance of purpose in consumer purchase decisions reports that 58% of Zoomers value authenticity as ‘very important’ in their purchase decisions. So it’s little wonder that some of the most popular up-and-coming non-alcoholic beverage brands run under taglines such as: “Created by plant scientists and bartenders” (Three Spirit); “What began in a kitchen in the woods is now leading a worldwide revolution–changing the way we drink” (Seedlip Herbal Elixirs); and “Shaken, not slurred” (Curious Elixirs ready-to-drink mocktails). See here for other notable spirits marketing trends in 2022.

Also of note:

• Sales for non-alcoholic spirits have increased 113.4% since 2020, surpassing growth of both non-alcoholic beer (31.7%) and wine (39.4%), according to Nielsen.
• Sales for RTDs have risen a meteoric 400% since 2019 on Drizly.

Takeaway: Don’t be afraid to introduce non-alcoholic drinks by independent brands — especially spirits and RTDs. Gen Z places a high value on getting exposure to these new and unique offerings.

Second to authenticity, health and environmental concerns are also key values that drive Generation Z’s purchase decisions. McKinsey reports that 42% of Zoomers and 53% of Millennials cite ‘recyclable products, packaging and related initiatives’, plus ‘No artificial ingredients, non-GMO/natural’ as ‘very important’ in their purchase decisions. Non-alcoholic drink-makers are responding with innovative beverage formulations made from a growing list of plant-based, functional ingredients and manufactured using sustainable packaging.

Takeaway: Both Gen Z and Gen Y are willing to pay a premium for healthier, more sustainable drinking experiences.

Across the board for all generations ,buyers of no- and low-alcohol beverages aren’t fully giving up on alcohol. 78% of non-alcoholic beer, wine, and spirits consumers are still buying alcoholic versions of their favorite drinks. When opting for a buzz-free night out, they often cite healthier lifestyles and declining interest in alcohol as top reasons.

• Include interesting mocktails alongside your standard cocktail menu. With so many new options cropping up, it’s easy to find ones for every taste and price point.
• Highlight regional/locally sourced ingredients where possible. You’ll earn extra loyalty points among Gen Z customers for offering sustainable, values-driven menu items.
• Focus on creating an experience your customers can’t have at home. Like eye-catching, personalized beverage-top prints made from all natural ingredients using a Ripple Maker!
• Start your relationship early with ads/social media presence. Always online, this generation of digital natives is likely looking for their next great drink experience on their phone – so make sure they can find you.

• 2022 Drizly Consumer Trend Report
• The No-Alcohol Industry Boomed Over the Padnemic. Where’s it Going Next?
• The sober curious movement is impacting what Americans are drinking
• New Insights into the Gen Z Drinker
• 7 Non-Alcoholic Elixirs for Sober Curious Sipping
• Meet Generation Z: Shaping the future of shopping