The world is witnessing a notable shift in drinking habits, with younger consumers driving demand for low- and no-alcohol beverages while redefining how, when and why they drink.
New research from IWSR and Euromonitor International shows that although moderation remains a defining feature of Generation Z’s enthusiasm for temporary alcohol abstinence such as “Dry January”, style breaks appear to have peaked globally.
According to the IWSR, while the Gen Z consort remains more likely to moderate alcohol intake than older generations, participation in temporary “sobriety breaks” is actually declining in major markets such as the US, UK, Australia, India and Taiwan.
Year-on-year comparisons show a statistically significant drop in Gen Z moderation compared with September 2024 in these countries, suggesting the initial surge in “temporary abstinence” may be fading. However, South Africa remains among the high-engagement markets.
Alongside India and Mexico, more than 60% of Gen Z drinkers still report taking periodic breaks from alcohol, which is among the highest rates globally.
“In almost every market listed, Gen Z is more likely than the general population to take breaks from drinking,” IWSR said, noting that the narrowing gap indicates “the novelty of temporary abstinence may be wearing off”.
According to the research, even high earners are cutting alcohol budgets with spending declining across many markets in the first half of 2025
The research showed that Gen Z is becoming more deliberate in its consumption rather than turning away from alcohol entirely.
“Gen Z is not turning away from alcohol but redefining its role, drinking more selectively, balancing moderation with discovery and reshaping when, where and why they engage,” IWSR said.
The group’s participation in alcohol consumption is stable compared with a year ago and higher than in 2023 but behaviour is shifting as the average number of drink categories consumed per occasion has dropped significantly from 2.8 to 1.8 in the past two years.
“Gen Zs are participating in alcohol more than in 2023 but they are becoming more selective and drinking fewer categories per occasion,” the report found.
At the same time, overall enthusiasm for “dry days” is declining.
While 39% of all drinkers across the top 15 markets reported abstaining for periods, the figure rises to 53% for Gen Z though this is notably down from the previous year.
IWSR said the major drivers expected to shape the global beverage alcohol market are:
- Gen Z behaviour evolution;
- affordability-driven choices;
- growth in developing markets;
- experience-led travel retail;
- rise of ready-to-drink (RTD) beverages;
- increasing importance of innovation; and
- affordability pressures.
The report said economic pressure plays a major role in consumer decisions.
“The long-running premiumisation trend is being reshaped by price consciousness,” IWSR said pointing to persistent cost-of-living concerns.
Consumers are not abandoning premium products entirely but are becoming more selective, seeking clear value before spending.
According to the research, even high earners are cutting alcohol budgets with spending declining across many markets in the first half of 2025.
This shift is also affecting social behaviour, with fewer visits to bars and restaurants and growing demand for more affordable options such as standard beer and RTDs.
While mature markets face stagnation, developing economies including South Africa are expected to lead global growth in alcohol consumption.
Around 30% of South Africans say they intend to reduce their alcohol intake of nearly double the global average of 17%. Among those under 35, about one in five plans to drink less
Countries such as India, Mexico, Nigeria, Brazil, Ethiopia and South Africa are forecast to contribute the most to total alcohol volume growth between 2024 and 2029.
The report showed that ready-to-drink beverages are emerging as a key growth category, driven by convenience, flavour variety and alignment with moderation trends.
According to IWSR, RTDs are outpacing overall alcohol growth in eight of the top 10 markets and are expected to continue gaining market share.
Innovation is also proving critical, accounting for more than half of the $231bn in value added to the global alcohol market over the past decade.
The findings come alongside separate data from Worldpanel by Numerator which highlights a broader shift in South African consumer behaviour.
Around 30% of South Africans say they intend to reduce their alcohol intake of nearly double the global average of 17%. Among those under 35, about one in five plans to drink less.
This reflects growing health concerns. About 38% of South Africans report struggling mentally or physically with stress, body weight and mental health, among the top challenges facing households.
As a result, lifestyle changes are becoming more widespread:
- 77% of households prioritise fresh foods;
- 74% focus on drinking enough fluids; and
- 68% actively avoid “bad habits”.
Despite South Africa’s historically high alcohol consumption, estimated at 7.8 litres per person annually by the World Health Organization, the data point to a gradual cultural shift.
TimesLIVE
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