Food Theory: Why Did Gen Z QUIT Drinking Alcohol?

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*🍹 Subscribe for a mocktail!* ► https://www.youtube.com/@FoodTheory/?sub_confirmation=1  Gen Z is now drinking WAY less alcohol than every other generation but why? And what does this mean for the alcohol industry? Will they struggle to upkeep sales or will they be able to pivot? That’s what we’re going to find out in today’s video!  ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ *Credits:* Writers: Santi Massa, Eddie Robinson Editors: Andrew Mejia, Pedro Freitas, Brandon Lum,  Sound Designer: Yosi Berman, Alena Lecorchick Thumbnail: DasGnomo ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ Need Royalty Free Music for your Content? Try Epidemic Sound. Get Your 30 Day Free Trial Now ► http://share.epidemicsound.com/theFoodTheorists ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ #GenZ #Millennials #Alcohol #Theory #FoodTheory

Transcript

00:00Gen Z is drinking less alcohol than every other generation on Earth right now,

00:05and it's having major repercussions.

00:06Since when did Gen Z become the designated driver of society?

00:10And what does this mean for the alcohol industry?

00:13That is what we're going to find out today.

00:16Hello, Internet!

00:17Welcome to Food Theory, the show that's the perfect mocktail of chaos and edutainment.

00:22And yes, I did say mocktails because that is what's all on the rage.

00:26Cocktails are so blasé, so 2024.

00:29But you know what's not blasé?

00:31Clicking that subscribe button.

00:32But back to the point, why?

00:34Because Gen Z just isn't that into drinking.

00:37That's right, the same generation that revived Y2K fashion,

00:40embraced oat milk like it was liquid gold,

00:42and somehow made Crocs fashionable again,

00:45is now making alcohol-free living cool.

00:47And when Gen Z decides something is over, it's O-V-E-R.

00:51And boy, is it.

00:52They're drinking 20% less than the generation before them, the millennials.

00:56And 33% less than the other generations when it comes to beer and wine.

01:00For generations, drinking has been a cornerstone of social life, adulthood,

01:05and even celebrations.

01:06College parties, happy hours, wedding receptions.

01:09Alcohol has been at the center of all of it.

01:11Sure, it's not like everyone drank.

01:13There's plenty of people of every generation that don't.

01:16And yet, it's specifically the drinking rates among Gen Z that are plummeting.

01:20Bars and nightclubs are struggling to keep young customers,

01:22and they're scrambling to understand how to entertain people

01:25that just don't want to partake in drinking.

01:27At first, this might seem like just another quirky generational shift.

01:31Like the sudden return of bell-bottom jeans,

01:33or that hairstyle that every Gen Z-er insists on getting.

01:36But this is not just a passing trend.

01:38This is something that's already reshaping industries, marketing strategies,

01:42and even the future of alcohol itself.

01:44Because here's the thing.

01:46This might be bad news for the alcohol brands out there.

01:49This is an industry that has spent billions of dollars

01:52making sure alcohol is seen as an essential part of adulthood.

01:55But now, their golden goose,

01:57the young adult demographic that kept bars full and liquor sales booming,

02:01is disappearing.

02:02So let's be clear here.

02:03We're talking about people born between 1997 and 2012.

02:07Now that the oldest Gen Z-ers are in their mid-20s,

02:10GAG,

02:11they are entering the consumer world,

02:12making their own purchasing choices,

02:14and having a heavy influence on brands, trends, and everything else.

02:18So companies are starting to take note of Gen Z's interests.

02:21I talked about this in our Chili's video a bit more,

02:23so make sure to check that one out.

02:25But basically, they're the captain now.

02:26And with that power, they've decided that they liked dry January so much

02:30that they're just gonna make it dry the rest of time.

02:33Statistics show 70% of people in Gen Z

02:35are choosing non-alcoholic beverages over the other kind.

02:38Only 18 to 20% of Americans of legal drinking age under 28,

02:43which is the cutoff point as of this episode for that group,

02:45said they regularly drank beer, wine, or spirits.

02:48Like I mentioned earlier,

02:49among millennials who were born between 1980 and 1994,

02:52consumption was way higher,

02:54especially for beer and wine.

02:55It's not just in the US either.

02:57In the UK, over one in four young adults now identify as non-drinkers,

03:01a number that has doubled in the last decade.

03:04It's astonishing.

03:05Even in countries with deeply ingrained drinking cultures,

03:08Germany, Spain, and Australia,

03:10young people are simply not reaching for booze like their parents did.

03:13But what is it about alcohol that no longer fits into Gen Z's world?

03:18It's well known that Gen Z is socializing a lot less in person

03:21due to the reliance on communicating through technology.

03:24Some people have even gone so far as to dub this the loneliest generation.

03:28And let's be honest, the pandemic definitely didn't help

03:31since they spent important informative time distancing themselves

03:34and doing the opposite of socializing.

03:36As Gen Z are spending less time in person,

03:38there's been a decline in alcohol consumption

03:40as, very often, alcohol is seen as a social drink.

03:43Since a common reason for drinking is to have a good time with friends,

03:46naturally, this decreases if the social interaction goes down too.

03:50But that's not to say that they aren't going out at all,

03:52just a lot less than before.

03:54And even though they are the loneliest generation,

03:56that doesn't mean that they aren't socializing either.

03:58They're just socializing in ways that prioritize health and finance.

04:01And booze doesn't fit well into either of those,

04:04especially in this day and age.

04:05I went out with some friends recently to catch up over dinner

04:08and made the mistake of getting a cocktail

04:09because, why not?

04:10We were celebrating reuniting.

04:12When the bill came, pet peeve of them not putting the prices on the menu aside,

04:16my jaw dang near hit the floor when I saw that the drink was 25 bucks.

04:21Mind you, my flatbread I ordered? 19.

04:24It's ridiculous.

04:25And Gen Zers aren't having any of that.

04:27And it's not just the price tag like we mentioned in other episodes.

04:30Gen Z are far more health conscious,

04:32arguably the most health-aware generation in history,

04:35because they have all the information they need at their fingertips.

04:38The awareness of alcohol and the effects it has on someone

04:41has significantly increased since the past generations.

04:43Sure, millennials were the first generation to have alcohol and drug educations in school,

04:48like the DARE campaign and Just Say No,

04:50but it was always vague and didn't harp on the actual health part of it.

04:53I remember as a kid, it was just,

04:55don't do this, it's bad for you, with some scary images,

04:58but we never really grasped the effect it had on our bodies.

05:01Gen Z, on the other hand, has had instant access to scientific research,

05:04nutritional breakdowns,

05:06and first-hand testimonials about how alcohol affects the body.

05:09So even from one generation to the next,

05:11there's a greater understanding of how alcohol can affect your health,

05:15and the results aren't pretty.

05:16Not just the physical aspect either, the mental one too.

05:19Almost 86% of the Gen Z population believe that their mental health

05:23is as significant as their physical health when considering drinking alcohol.

05:27And while, yeah, alcohol does have a relaxing effect by lowering your inhibitions,

05:32that's the reason why inebriated people do dumb things,

05:35there's a flip side to that coin,

05:36because it also disrupts sleep quality, gut health,

05:39and increases the presence of negative feeling,

05:42like anger, depression, and anxiety.

05:44And Gen Z is already depressed and anxious enough as it is,

05:48so they're electing to move away from alcohol

05:50because they've got enough on their plate,

05:51or in their cup, as the case may be.

05:54I do want to point out that I know I'm referring to Gen Z

05:56as if it's some sort of monolith,

05:57and obviously it's not,

05:59but trends are incredibly significant in this generation,

06:02the generation of social media.

06:04And yeah, older generations,

06:05well, mostly just the millennials,

06:07did have social media from a relatively young age,

06:09but we're talking about people

06:10who've been sharing their lives with the world

06:13for as long as they can practically remember.

06:14And the influence of social media is absolutely

06:17one of the most important factors in them giving up liquor,

06:20because watching people online share their thoughts

06:22on the negative effects of alcohol,

06:24their personal stories,

06:25or following trends like Dry January

06:27encourages others to follow suit.

06:29Look at Tom Holland,

06:30not just because he's easy on the eyes,

06:32but because he's a good example of this.

06:34Someone in the cultural conversation

06:35who's become an advocate for sobriety.

06:37He started through Dry January,

06:39and he's not the only one.

06:41Last year, 35% of Gen Zers between 21 and 24

06:45also completed Dry January.

06:46And now, the vastly better Tom

06:49even makes his own alcohol-free beer.

06:51And the other aspect of social media

06:52is the ability to have a conversation with the world.

06:55There's a large trend called the Sober Curiosity Movement,

06:58which challenges people to assess

07:00their relationship with alcohol,

07:01not to cut it out,

07:02but to ask themselves why they drink,

07:04all in the name of mental and physical health.

07:06The term Sober Curious was popularized

07:08by the author Ruby Warrington in her 2018 book,

07:11and Gen Z is latching onto it

07:13because it's become a global conversation.

07:16As opposed to what I alluded to earlier,

07:18when education for the older generation

07:20was simply being told not to do something,

07:22now it's a dialogue that young people

07:24can feel empowered to participate in.

07:26And clearly, when they start asking themselves

07:28the important questions,

07:29alcohol seems like less of a necessity

07:31for going out and socializing.

07:33But while health and wellness

07:34is absolutely the primary concern

07:37and driving factor of sobriety for Gen Z,

07:39we can't really leave out

07:41how expensive it is to drink.

07:42Almost a third of young people

07:44choose low and no alcohol drinks

07:46specifically because they're cheaper

07:48than the alcoholic versions.

07:49This isn't to say that they're all about

07:50saving money and penny-pinching.

07:52Sure, harsher economic reality right now

07:54between student loan debt,

07:55skyrocketing rent prices,

07:56and an uncertain job market,

07:58but the youth are actually happy to shell out cash.

08:01They're willing to pay more

08:02so long as it's a better quality product.

08:04Trends from 2024 show that when Gen Z do drink,

08:07they prefer premium beverages.

08:09Gone are the days of slamming down

08:11whatever's cheapest at the bar.

08:12Gen Z would rather have one high quality,

08:15carefully curated drink

08:16than five that tastes like bad decisions.

08:18They're trading quantity for quality.

08:20So here's the real kicker.

08:22This isn't just about drinking less,

08:23it's about drinking differently.

08:25And the alcohol brands are listening closely.

08:27That's because Gen Z isn't killing alcohol,

08:30they're reinventing it.

08:31Say what you will,

08:32but this generation knows what they want.

08:34And they have standards,

08:35which is more than I can say

08:36for the frat bros of my college years

08:38downing anything so long as it was unleaded.

08:41And even then, I've seen things.

08:42When it comes to the things Zoomers are drinking,

08:45one of the fastest growing markets

08:46is the ready to drink beverages or RTDs.

08:49The global RTD market is expected to more than double

08:52from 1.01 billion to 2.23 billion by 2029.

08:57And it's thanks to Gen Z who live fast paced lives

09:00and need a good drink

09:01that doesn't require a bunch of preparation.

09:0354% of Gen Z drink pre-mixed alcohol beverages and spirits,

09:07which include things like hard lemonades,

09:09hard seltzers, and kombucha.

09:11And if you've never had it, by the way,

09:13thank your lucky stars.

09:15Living in LA so long, it was hard to avoid it.

09:18And the one time I did have it,

09:19I literally spat it back out on the street.

09:22I truly don't get it, but that's just me.

09:24Gen Zers on the other hand,

09:25are down to try pretty much anything.

09:27That's why these RTDs are also such a smash hit,

09:30because they offer a huge variety of flavors and options.

09:32They're also drinking the good stuff,

09:34the premium stuff, like I mentioned.

09:3654% of Gen Z are likely to choose a premium drink

09:40compared to just 35% of people in older generations.

09:43This trend is particularly evident in spirits

09:45where premium, super premium, and ultra premium categories

09:50have been growing like the stuff

09:51at the bottom of kombucha bottles.

09:53Seriously, so gross.

09:54But companies are now adapting to this,

09:56creating beverages with interesting flavors

09:58like pineapple wine cocktails and orange lemonade vodka.

10:01But that's not the only way companies are adapting,

10:03because the new wave is all about the no low trend,

10:06you know, drinks with no and low alcohol.

10:08And the brands are riding that wave to the bank.

10:11They're not dumb,

10:11they see that their customers are drinking less alcohol.

10:14So if people don't want alcohol in their beer,

10:16they're not gonna stop selling beer,

10:18they're just gonna stop selling the alcohol in the beer.

10:20More and more companies are starting to offer 0% beers,

10:23and they're seeing a lot of success with it.

10:24The NA or non-alcoholic beer market

10:27rose by 35% from 2022 to 2023.

10:31And it's expected to keep growing at a pretty massive rate.

10:34Now, once upon a time,

10:35removing the alcohol from the beer

10:37had to be done post fermentation

10:38through techniques like boiling,

10:40vacuum distillation, and reverse osmosis.

10:42Problem was these methods could negatively affect the taste.

10:45So non-alcoholic beers were far from the preference.

10:48But now advancements in technology

10:50have also allowed these companies

10:51to improve the flavor of these non-alcoholic beverages,

10:54meaning not only is it not a bad substitute,

10:57but can be as good as the original two.

10:59And it's not just limited to beers.

11:00There are companies that sell de-alcoholized wine.

11:03I'm fascinated by this product

11:05because it's not like it's just a juice.

11:06They've actually removed the alcohol

11:09from fully fermented wine,

11:10and it leaves it tasting just like the alcoholic kind.

11:13This is a perfect example of an industry

11:15actually listening to its customers

11:17and a consumer base that's truly talking with their wallets.

11:20And we all come out winning.

11:21Higher quality spirits,

11:22no or low alcohol variants

11:24that taste just as good as their alcoholic counterparts.

11:27Even older generations are drinking less or healthier

11:30thanks to Gen Z's lead.

11:31We owe them a debt of gratitude.

11:33But there's one other big winner here.

11:36Notice how at no point in the episode

11:37did I say that the alcohol industry is declining?

11:40Sure, there are certain aspects

11:41or specific brands that are in trouble,

11:43looking at you, Natty Light.

11:45And sure, there are less people drinking now than ever,

11:48but sales in the alcohol industry as a whole

11:50haven't stopped climbing since the pandemic.

11:52People may be drinking less volume of alcohol,

11:55but prices haven't dropped a bit.

11:56In fact, some of these no-load drinks

11:58are even more expensive than the alcoholic kind.

12:01They require the same or similar techniques

12:03to the alcoholic types,

12:04just with the added step of removing the alcohol,

12:06which then makes it a premium product to sell.

12:09There's a bit of a slump as manufacturers

12:11shift their strategies to fit the new market,

12:14and some of them may stumble in the short term,

12:16which explains why some markets have seen a small decline.

12:18But these companies aren't worried about the now.

12:21They play the long game.

12:22Look at Anheuser-Busch,

12:23the largest beer company in the world.

12:25Right now, they're experiencing a small dip in sales,

12:28but their non-alcoholic options are exceeding expectations.

12:31And if things keep going the way they are,

12:32their non-alcoholic sales will likely equal

12:35or even exceed their others.

12:36And they're coming out looking like the heroes

12:38because they're giving us healthier options

12:40and listening to the consumer base

12:42without actually sacrificing anything.

12:44In fact, they're gaining in the long term.

12:46So Gen Z being healthy and drinking less because of it

12:49has created a shift in the industry

12:51that's demanding higher quality and healthier options.

12:53It's also making the rest of us

12:55start to moderate our own drinking habits

12:57and consider healthier options.

12:58And the alcohol industry is loving it

13:00because we are playing right into their hands.

13:03But hey, that's just a theory.

13:05A food theory.

13:07Bottoms up.

13:08Or, you know, not.

13:09And hey, if you like this,

13:10make sure to check out our video on the Uber Eats conspiracy.

13:13And as always, I'll see you next week.

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