Key facts
- 71% of baby boomers consumed alcohol in the past six months, the lowest rate of any generation.
- 74% of Gen Z at legal drinking age reported drinking in the past six months, an increase from three years ago.
- The average number of drinks consumed per occasion has fallen to 2.6 for boomers, down from 4.4 across all drinkers.
- The study surveyed over 32,000 people across the 15 largest alcohol markets.
Baby boomers are leading the trend of reduced alcohol consumption, contrary to the assumption that younger generations like Gen Z are primarily driving this shift. New research from IWSR, a market researcher for the global beverage industry, indicates that only 71% of boomers (born 1946-1964) consumed alcohol in the past six months, the lowest rate among all generations and a 2 percentage point decrease from three years prior. This contrasts with Gen Z, where 74% of those of legal drinking age reported drinking in the same period, an increase from 66% three years ago. The overall adult drinking rate stands at 76%.
Marten Lodewijks, President of IWSR, stated that the narrative of Gen Z being the 'generation of moderation' is now debunked. The findings challenge the prevailing belief that young people are the main cause of weak demand and declining sales in the global drinks industry, which has seen shares of major spirits companies like Diageo, Pernod Ricard, and Brown-Forman struggle. The debate in the sector centers on whether these declines are due to inflation or longer-term shifts towards healthier lifestyles and online socializing.
The survey, which included over 32,000 participants across 15 major alcohol markets, revealed that consumers are drinking fewer beverages per occasion, with the average dropping to 3.9 drinks from 4.4 in previous years. Boomers, in particular, consumed an average of just 2.6 drinks per occasion. Lodewijks noted that while reduced drinking is typical in one's 60s and 70s, the observed drops across all metrics were larger than expected. He suggested that if current trends persist, boomers might indeed earn the title of the 'generation of moderation.'
While global consumption is generally falling, there are exceptions in some emerging markets. In India, the participation rate among high-income urban earners rose to 77% from 67% three years ago. Similarly, in China, the rate among drinkers in the same demographic increased to 89% from 86%. The research suggests that the moderation trend is increasingly driven by lifestyle choices, pointing to a structural rather than cyclical change in the industry, even amidst economic uncertainty.