“I think that a lot of things have changed for younger people in the last 20-25 years, there’s more to do than just go to the pub and I think that's another effect we’re properly seeing now,” adds Halstead.

However, as the generation moves from education into full-time work and builds a disposable income, the spending habits are changing. The IWSR report showed that the proportion of legal drinking age Gen Z consumers who have consumed alcohol in the previous six months had risen from 66% in March 2023 to 73% in March 2025. The proportion went from 46% to 70% in the US, 66% to 76% in the UK and from 61% to 83% in Australia.

MODERATION FACTORS 

Having established that the drinking habits of Gen Z are situational rather than systemic, other factors are causing moderation across all generations.

“Everyone's trying to put their best self out there, but in terms of moderation, older people are generally just trying to drink a bit less. Younger people are abstaining for periods of time,” adds Halstead.

“I think it's become socially acceptable to not drink in a social setting, but also for a period of time because of an upcoming event such as a marathon. Or even trying to detox after a period of partying.”

Social class is another potential factor for the global moderation trend. Halstead says: “For consumer research, defining social class is going to be difficult. I think that the proxy we have is income. What we do know is that moderation tendencies and indeed frequency of consumption do correlate quite strongly with income. If you’re on a low income, you’re more likely to be an abstainer.”

On the flip side, it could be argued that moderation and the trend towards a healthy lifestyle, particularly through social media and smart phones, is being driven by the middle class rather than simply the ability to afford drinking. For years PR agencies and news headlines have claimed younger consumers wanting better quality drinks but on a less-frequent basis.

“The evidence from the consumer data is that if people are doing something less often and on particular occasions, they want something that's interesting and worthwhile having,” adds Halstead. 

“So they're potentially using price as a proxy for quality. And that’s a very typical younger person behaviour because they’re perhaps not as familiar with a category. 

“If you’re not as familiar with the category, what you don't want to do is to buy the cheapest thing and then find that it’s undrinkable.” 

Whether they feel proud or whether they feel victimised as the “generation that doesn’t drink”, Gen-Zers have been incubated in a hostile economic environment. There are some factors being left behind by the generation, such as the transition to full-time work and a recovering economy. 

But there are other trends, such as the desire to appear healthy on social media, prove self-control and avoid hangovers, which are trans-generational. These are the ones driving the overall moderation trend across all age groups, not just Gen Z.