That was the message from CGA by NIQ’s Drew Hummel at a special presentation at the recent Bar Convent Brooklyn. CGA’s data shows the number of Gen Z households turning legal drinking age and buying BevAl has nearly doubled in just two years—and they’re some of the most engaged and experimental consumers the On Premise has ever seen.
CGA’s On Premise User Survey (OPUS) reveals the average 21 to 34 year-old has gone out for a drink 5.7 times in the last three months—far more than the average of 1.4 among those aged 55+. This younger cohort also has an average of 6.0 drink categories in their repertoire, compared to the US average of 4.4.
Gen Z are clearly a very diverse group, and they’re challenging suppliers and venues to understand their needs and adapt their consumer recruitment and branding strategies in an authentic way. Here are five of the ways they’re shaking things up.
1 More mindful drinking
Gen Z are at the leading edge of a major BevAl trend: mindful drinking. It includes a desire to moderate alcohol intake, which has powered a 35% increase in sales by value of non-alcohol beer, wine and spirits in the last 12 months. However, with 94% of these non-alcohol consumers also buying alcoholic products, ranging strategies need to cater for complex needs. Mindful consumers are also focused on issues like sustainability and healthy choices.
2 A yearning for experiences
Younger US consumers are increasingly looking not just food or drink on a trip out, but a full experience, and more than two in five 21 to 34 year-olds (42%) say they visit experiential bars. For suppliers, the challenge is to align the right brands with the wide range of experiences that are now on offer.
3 Thirst for premiumization
Rising costs of living in the US are having a lasting impact on BevAl purchasing. But while some consumers are now sharply focused on value, people less affected by inflation—which includes those in Gen Z who often have more disposable income—continue to premiumize their choices. Asked about their intentions with a fixed spend on spirits, nearly three quarters (72%) say they would buy one or two premium or super-premium drinks, while only 27% would choose three or four standard or value ones. Alongside mindful drinking, it’s creating a desire for quality over quantity.
4 Interest in recommendations
Gen Z are very open to influence in their drinks choices. More than a third (38%) of them ask for the bartender’s recommendation every or almost every time they buy a cocktail—10 percentage points more than the average On Premise visitor. These endorsements are very powerful, as 74% of bar staff told CGA’s new Global Bartender Report that guests order the drink or brand they recommend every or almost every time. Social media is another vital source of influence for Gen Z, driving brand awareness and creating direct engagement between suppliers and drinkers.
5 Cannabis consumers in high spirits
Nearly half (45%) of 21- to 34-year-olds say they have consumed cannabis in the last six months—much higher than the 28% average among all consumers. OPUS research shows that compared to the average US consumer, cannabis consumers visit the On Premise to eat (+13pp) and drink (+6pp) more on a weekly basis. Looking at the categories cannabis consumers typically drink during their visit shows an opportunity within spirits, as shots/shooters (49%), RTD’s (41%), Hard Seltzers (40%) and Spirts (39%) all prove the most popular.
CGA by NIQ’s market-leading suite of solutions deliver many more insights into Gen Z, helping businesses track their behaviors and preferences and respond with effective strategies that optimize brand engagement and grow sales. To learn more, contact Drew Hummel, CGA client solutions director, Americas here.
