CGA by NIQ’s recent market-leading OPUS insights uncover how this health and moderation trends are driving Gen Z’s drinking habits in Brazil’s On Premise, with a rising appetite for health-conscious beverage options when out. As a result, the shift presents an exceptional opportunity for drinks suppliers to capture new market segments and strengthen their position in the Brazilian On Premise sector.
Stable On Premise spending among Gen Z in Brazil indicates a positive outlook for the coming months. More than half (54%) of Gen Z consumers are increasing their spending compared to the previous three months, reflecting a growing desire to treat themselves when going out. This changing behavior suggests a greater willingness to explore new beverage options, giving brands and suppliers a captivating chance to engage with this segment during their visits to bars and restaurants.
But one of the most significant findings is the surge of the no/low alcohol trend among Gen Z. Almost a third (30%) of Gen Z Brazilians now opt for ‘healthy’ drinks when going out versus a year ago, over-indexing by +3pp (percentage poitns) compared to the average Brazilian consumer.
Among those who choose these options, 7% are likely to trade up to premium categories, signalling a growing interest in high-quality non-alcoholic beverages. This readiness to spend more for premium alternatives represents a valuable window for suppliers to position their offerings as both health-conscious and high-end to appeal to this discerning consumer base.
Additionally, calorie content is a deciding factor to 11% of Gen Z when choosing no/low alcohol alternatives. Furthermore, 13% cite ‘being healthy’ as their primary reason for opting for these beverages, with virgin cocktails being the top choice. This highlights the growing importance of offering drinks aligning with current wellness trends, as younger consumers seek options to support their efforts towards a healthier lifestyle.
Suppliers tapping into these findings are better equipped to position themselves as the go-to choice for this health-conscious and environmentally aware generation. By doing so, they can not only meet the immediate demand for no/low alcohol alternatives and healthier, premium options, but also nurture longer term loyalty with a consumer base prioritizing wellness in their lifestyle choices.
CGA by NIQ client solutions manager, Caroline Lakryc said: “Understanding the shift toward health-conscious and moderation-focused consumption among Gen Z is essential for suppliers looking to grow their presence in the Brazilian On Premise market. It’s an unmissable chance to ignite brand engagement, boost distribution, and capture loyalty lasting beyond evolving consumer trends, by aligning product offerings to meet the expectations of this younger generation.”
CGA by NIQ client solutions manager, Caroline Lakryc
OPUS provides unparalleled analytics and thought leadership to help businesses win in the On Premise with strategies, sales stories and customer conversations tailored to key occasions and channels. It helps brands anticipate trends by understanding consumers’ behaviour and revealing the ‘why’ behind category and brand consumption, empowering industry professionals to make informed decisions, drive innovation, and achieve sustained success.
To learn more about how CGA’s data can help suppliers and operators gain sales and share, contact CGA associate client solutions manager – Brazil Caroline Lakryc here.
