Is Alcohol Consumption Declining?
Gen Z is notably sober curious. How is it affecting alcohol businesses?
Going out doesn’t mean what it used to. Drinking alcohol once was a significant part of most lifestyles, but today’s young adults are embracing sobriety and sober curiosity more than ever.
When asked why, their answers vary, but, in general, health and wellness goals sometimes including GLP-1 medications, finances, and increased awareness about the potential negative side effects of alcohol, especially in excess, are often cited.
A Look at the Data
It seems the trend isn’t so much about going for total sobriety as it is about being more intentional about alcohol consumption overall.
Research shows that while not all consumers are cutting down on imbibing, younger millennials and Gen Z (defined as those born between 1997 and 2012) are cutting back on, if not turning away from, alcohol altogether.
While the National Institute of Alcohol Abuse and Alcoholism suggests drinking alcohol is overall on the rise, the National Institute on Drug Abuse shows declines dating back to the year 2000 when it comes to the habits of young drinkers specifically.
Depending on the study, the numbers vary, but the trend generally suggests that around a quarter of Gen Zers have sworn off alcohol altogether while a larger percentage simply doesn’t drink to excess.
Alcohol sales overall fell less than 1 percent in 2024, according to NielsenIQ, which equates to a little less than $1 billion.
Millennials drink less than Gen Xers and baby boomers, and they also are the biggest driving force behind the rise of nonalcoholic beverages such as beer. According to IWSR Bevtrac, consumption in the no-alcohol category doubled between April 2023 and August 2024.
“Gen Z and younger millennials are definitely leading the charge on mindful consumption,” says Annalisa Suarez, director of craft beverage and spirit innovation at 10 Torr Distilling and Brewing in Reno. “They’re more informed, more intentional with their choices, and often seek out balance over buzz. But we also see Gen Xers and older millennials opting for NA drinks with every other drink.”
This may explain, at least in part, why several Northern Nevada bars and drinks producers have closed in the last year. While not all owners have spoken specifically about the reasoning behind their closures, among the casualties so far this year are Reno-Sparks’ IMBĪB Custom Brews and Voodoo Brewery along with Blind Dog Tavern and Paddy & Irene’s Irish Pub.
However, according to Pew Research Center, Nevada has one of the highest levels of alcohol consumption per capita in the nation. But that, of course, includes Las Vegas, a big, partying, tourist destination.
Drinking Smarter
“I’d say drinking for me is a rare occasion, and it has to be the right setting for me to even be inclined to drink,” says Elle Sizemore, a student at the University of Nevada, Reno. “I drink one or two times a month.”
Sizemore says her decisions around drinking are largely financial. While she doesn’t like to feel “not in control,” she also cites the cost of going out to spend money on alcohol in addition to the cost of rideshares as deterring factors.
“It just feels kind of pointless to spend potentially over $100 just to dress up and talk to people. I’d just rather spend the money on something more worth my time than drinking,” she says.
Sizemore’s drinking habits align with trends seen by local business owners and bartenders.
“We’ve seen subtle shifts that reflect the national trend [of lower alcohol consumption],” Suarez says. “While alcohol sales overall remain steady … there’s been a noticeable uptick in guests opting for nonalcoholic options, particularly during weekday visits or earlier in the evening. People are still coming out to socialize, but more are pacing themselves or skipping alcohol altogether.”
In Los Angeles, the rise of teahouses as third spaces likely has a lot to do with residents looking for late-night activities that don’t center around drinking. Often open until the wee hours of the morning, some of the teahouses have blown up on TikTok while others are hidden and require cover charges and even membership fees to visit.
Ashley Frey, cofounder of Frey Ranch Farmers + Distillers in Fallon, says she and her husband and co-owner, Colby, have noticed people drinking smarter rather than not drinking at all. She says they don’t target any demographic over another but have noticed that their consumers are often ingredient focused or connect in some other way with the Frey Ranch story. At the end of the day, Frey Ranch champions choice.
“What we have noticed is a lot of people are … maybe having two cocktails, and then they have a mocktail,” she says. “Drinking in moderation is great.”
To meet the current market needs, 10 Torr has added more craft nonalcoholic options to its array of offerings and is exploring lighter beer styles with lower alcohol by volume.
While most establishments now carry at least one nonalcoholic beer, if not multiple options, sparkling waters and sodas containing hemp-based cannabidiol (aka CBD) also are being made available at a number of businesses, including Reno’s Old Granite Street Eatery and Brass Tap, for alternative buzzy options without the booze. Some people are finding other ways to get high, turning toward cannabis (with THC) products (including drinks) and magic mushroom products.
“Many guests mention they just want to be part of the scene without the aftereffects of alcohol,” Suarez says.
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