Generation game: are younger LDA consumers becoming more selective in their drinking habits?

While younger consumers are now actively engaging with beverage alcohol around the world, there are signs that they are becoming more selective in their purchase choices – but trends are highly diverse, with notable variations by market and age group.

According to IWSR Bevtrac consumer research conducted across 15 markets* (T15) in September 2025, the trend towards drinking across multiple categories on the same occasion has reversed, with younger cohorts – who typically have the broadest repertoires – showing less propensity to mix than in September 2024. This trend is particularly notable among Gen Z consumers in Brazil, India, Mexico and Spain; and among Millennials in Canada, China, Germany, Italy, Taiwan and the US.

“Category participation remains stable year-on-year and higher than in September 2023 among Gen Z, narrowing the gap with all adults,” says Marten Lodewijks, IWSR Managing Director and President. “Even so, Gen Z is becoming more selective, with the average number of categories consumed per occasion dropping from 2.8 to 1.8 in the past two years.”

Gen Z: engaged but selective

According to Bevtrac’s September 2025 research, 74% of Gen Z consumers across the T15 markets now participate in beverage alcohol, up from 72% in September 2023. The strongest participation gains have come in Taiwan, the UK, India, Brazil and France.

However, the trend has plateaued or even reversed in other markets, including the US, South Africa and Canada.

At the same time, the beverage alcohol participation gap for Gen Z versus all adults has narrowed from nine percentage points (9pp) to 3pp since spring 2023, although it has now stabilised. In Taiwan and China, Gen Z participation rates are now higher than those recorded for all LDA+ consumers; elsewhere, the smallest participation gaps occur in the US (1pp) and India (2pp), and the largest in Japan (18pp) and France (12pp).

On-trade consumption remains a key dynamic for Gen Z: according to Bevtrac research, 39% of all drinkers visited the on-trade on their last consumption occasion, compared to 46% for Gen Z. “Despite the general decline in on-trade participation, Gen Z drinkers remain more likely to consume in the on-premise across Europe, North America, Australia, South Africa and Japan, although the opposite is true in China,” says Lodewijks.

Mindful Millennials’ diverse dynamics

Millennials remain a crucial age cohort for beverage alcohol brand owners, but Bevtrac research shows a highly fragmented picture, with trends varying from market to market.

In the US, Millennials remain the most likely group to be engaged with alcohol, both in terms of participation and repertoire, but repertoires are now narrowing as moderation attitudes strengthen. Not only do Millennials report drinking less, but they plan to continue to moderate in the future, and report similar behaviour among their social circle. The average number of categories consumed by Millennials in the US fell from 6.3 to 5.9 between September 2024 and September 2025.

There are also signs of US Millennials withdrawing from the on-trade: in September 2025, 36% said they visited the on-trade the last time they drank alcohol, down from 41% a year earlier. The average number of categories consumed at their last occasion also declined, from 2.1 to 1.7.

In Australia, there is evidence of rising levels of financial security and confidence among Millennials, but to date this is not translating into increased spending on alcohol. Repertoires are smaller than in September 2024, although sentiment around moderation is now showing signs of stabilising.

Meanwhile, Millennials’ worsening perceived financial situation in Brazil is curbing both current engagement levels and future intentions towards alcohol. Confidence levels about their prospects for next year, personal finances and future finances are all materially down versus September 2024, with similarly significant declines in going out, alcohol consumption and intended future alcohol consumption.

This appears to have impacted spirits and sparkling wine in particular: recalled category consumption of spirits fell to 72% among Brazilian Millennials in September 2025 from 78% the year before; for sparkling wine, consumption rates declined from 21% to 16% over the same timescale.

In France, TBA participation and repertoires are stable among Millennials. However, the age cohort appears to have shifted its attention away from spirits and RTDs to wine: in September 2025, 72% of Millennial drinkers said they had consumed still wine over the past six months, up from 64% in September 2024. Over the same timescale, consumption rates for RTDs declined from 18% to 14%, with falls also for Tequila/mezcal (10% to 6%) and brandy (6% to 3%).

Abstinence: mainstream, but more relaxed?

“Claimed moderation levels among drinkers are stable versus last year, and yet drinkers say they are now more aware of those around them cutting back, suggesting that these behaviours are becoming more mainstream,” reports Lodewijks. “However, the share of drinkers taking ‘dry’ days is in decline, led by younger LDA+ consumers, although this cohort is still the most committed to temporary abstinence.”

Gen Z consumers were hailed as the pioneers of a new age of moderation, but the enthusiasm for taking temporary breaks looks to have peaked in most Bevtrac markets, with Gen Zs in Australia and the UK showing a significant year-on-year decline in this behaviour.

Across the T15 markets in September 2025, 53% of Gen Z drinkers said they had abstained from alcohol for a period of time, significantly down on 2024, but still ahead of the figure for all age groups (39%).

There are also signs that breaks from drinking are getting shorter for Gen Z, with longer abstinence breaks falling out of fashion. In September 2025, 28% of Gen Z drinkers across the T15 markets said they had abstained from alcohol for a month or more, down from 30% a year earlier. This trend was especially apparent in Australia, the UK, Italy, and France.

*T15 markets: US, Canada, Brazil, Mexico, UK, France, Germany, Italy, Spain, South Africa, India, China, Taiwan, Japan, Australia