Gen Z—those born between 1997 and 2012 and of legal drinking age—often encounter beverage brands for the first time while drinking or eating out-of-home. This makes the On Premise a vital place to engage—especially at a time when footfall and consumption are being squeezed. However, a recent Nielsen Insider survey found that nearly six in ten leaders don’t know how to address this generation’s needs.
To help, CGA by NIQ experts including George Argyropoulos and Graeme Loudon hosted an exclusive ‘How to win with Gen Z’ webinar, revealing the top habits and needs of this all-important cohort. Here are seven of the top takeaways.
1 Gen Z love the On Premise
CGA’s global On Premise User Survey (OPUS) shows how pubs, bars, restaurants, cafes are central to Gen Z’s lives. Nearly three quarters (72%) visit on a weekly basis—16 percentage points more than the average consumer—and the number is even higher in countries like Italy (80%). Encouragingly, Gen Z’s confidence is increasing, as 38% say they will be visiting the On Premise more over the next three months—double the number (19%) who will go less often.
2 These are digital natives
With around 2 billion people, Gen Z may be the largest, wealthiest and most culturally diverse generation in history. It is also the most connected, having grown up with smartphones and social media. Profiles on Instagram and other platforms have become Gen Z’s personal brands, and more than half (52%) agree that how they come cross here is very important to them. Social media heavily influences spending decisions, as three in five (60%) look through their friends’ feeds to get ideas of where to go to eat or drink. Brands that can become part of these social lives have a huge advantage in the battle for Gen Z.
3 Instagrammability is vital
To gain traction on social media, visual appearance is key. Nearly half (46%) of Gen Z say they often base their drink choice on what will look good there, and it’s even more in Germany (64%) and the Netherlands (62%). Compelling serve strategies can ensure that brands are presented well on Instagram and elsewhere. CGA’s Global Bartender Report reinforces the importance of this, as bar staff rank social media appeal as the single most important global cocktail trend.
4 Some changes in dayparts
CGA by NIQ’s research shows three in ten (30%) Gen Z consumers are going out to eat earlier than they were a year ago. This is in line with a global shift towards earlier dayparts, and highlights the value of all-day outlets and with-food strategies. However, there is much less change in the timing of drink-led occasions, which peak for Gen Z between 11pm and midnight.
5 Cocktail consumption beats beer
In the key markets surveyed by CGA, significantly more Gen Z consumers are choosing cocktails than beer, and the gap is particularly wide in countries including Britain and France. This is partly thanks to Gen Z’s desire for drinks that boost their currency on Instagram, TikTok and elsewhere. It’s also a result of interest in new tastes and brands, as more than half of Gen Z has tried a new drink in the last month—10 percentage points more than the average consumer.
6 Demand for quality over quantity
While value plays a big role in Gen Z consumers’ decision-making, many of them are prioritising quality over quantity. Asked about their preferences with a set amount money, 57% say they would buy one or two high quality drinks—far more than the 14% who would buy four or five lower quality ones. This opens up the potential for premiumisation, and CGA’s OPUS tool can help suppliers identify the best occasions, categories and outlet types to achieve trade-ups.
7 Interest in moderation
Moderation has been a major recent trend in most countries and age groups, and Gen Z is no exception. Nearly a third (31%) say they are drinking less alcohol than they were ago, while only 15% are consuming more. While this presents some challenges, it doesn’t mean that this is a much sober generation—and the trend also brings dynamic new opportunities for no and low alcohol alternatives.
Click here to watch CGA by NIQ’s ‘How to win with Gen Z’ webinar in full.
CGA by NIQ’s best-in-class range of solutions provide many more insights into Gen Z’s engagement with the HoReCa landscape, helping suppliers and operators understand needs and optimise strategies. Expert in-country analysis is available to help understand local nuances and tailor strategies to key territories. To discover more, contact the CGA by NIQ team.
