Millennials vs Gen Z — Who Drinks What in 2025?
In 2025, drink culture looks nothing like how it was even a decade ago. The explosion of craft beer, the rise of hard seltzers, the whisky industry exploring appreciation versus consumption, and the rise of the sober-curious crowd are changing generational consumer tastes faster than many brands have capacity to respond.
The two biggest forces influencing the global drinks market right now are Millennials and Gen Z. They aren’t only future drinkers; they are current drinkers as well. Together, they represent billions in purchasing power, but what is fascinating is how differently they drink, socialize around alcohol, and value wellness.
Millennials, now in their 30s and 40s, are experienced drinkers who are somewhere in between drinking alcohol that is deemed indulgent and drinking drinks that are deemed health-friendly. Gen Z is just now beginning to approach the legal drinking age of most countries and are already changing the rules of engagement. One of the immediate and mostoooo apparent differences, Gen Z is the least likely to drink alcohol at all but are marketing category creators for products like ' kombucha, CBD soda, or an NA gin + tonic.
So, who is drinking what in 2025? And why is this distinction important? Let’s unpack it now.
Generational Snapshot: Who Are Millennials & Gen Z?
Millennials (born ~1981–1996)
Millennials are the first "experience-driven" generation. They grew up during the craft beer revolution, the emergence of Starbucks and third-wave coffee culture, and the wellness boom of the 2010s. For them, beverages are about meaning. If their values align, they will pay more for organic wine, small-batch whisky, or ethically sourced tequila.
Key traits shaping Millennial drinking habits:
- Wellness balanced with indulgence – They may drink kombucha during the week, but splurge on champagne for a celebration.
- Convenience-driven – RTDs, canned cocktails, and delivery-friendly formats fit their busy lives.
- Purpose-oriented – They support sustainable, transparent, and socially responsible brands.
Gen Z (born ~1997–2012)
Gen Z are true digital natives. TikTok, Instagram, and YouTube influence their lifestyle choices more than any traditional marketing ever could. They prioritize individuality, self-expression, and wellness over anything else. Alcohol has much less importance in their social identity than previous generations.
Key traits shaping Gen Z drinking habits:
- Mindful consumption – More Gen Zers identify as “sober-curious” than any generation before them.
- Flavor experimentation – Exotic flavors, botanicals, and fusions excite them.
- Authenticity and transparency – They prefer brands that feel real, socially conscious, and culturally relevant.
This generational contrast sets the stage for very different drinking cultures.
The Big Shift: Declining Alcohol, Rising Alternatives
For decades, alcohol was synonymous with fun, relaxation, and socializing. But younger generations are breaking that mold.
- Gen Z is drinking significantly less alcohol than Millennials did at the same age. According to a 2024 IWSR study, Gen Z consumes around 20% less alcohol per capita compared to Millennials when they were in their early 20s. Instead, they’re leaning toward functional, health-forward alternatives.
- Millennials also cut back on alcohol, but they’re less rigid than Gen Z. For them, moderation is about balance rather than avoidance.
Addressing the gap: functional beverages. From kombucha to adaptogen teas to CBD sodas, the non-alcoholic beverage space has exploded. The global no- and low-alcohol category is projected to grow 7-8% annually until at least 2028, significantly outpacing traditional alcohol categories.
This is a health concern, but more than anything it's an identity-driven issue. When many Gen Z consumers think about drinking less, it's not about depriving themselves of an experience; it's about aligning with who they are trying to be.
What Gen Z Drinks: Moderation, Flavor, and Novelty
If Millennials opened the door to alternative beverages, Gen Z kicked it wide open. Their habits reflect a generation that craves novelty, customization, and experiences.
Alcohol-Free and Low-ABV Drinks
- Events involving mocktails and non-alcoholic spirits are taking off with Gen Z.
- Brands including Seedlip and Ritual Zero Proof are viewed as premium, not “less than” real spirits.
- Hard seltzers and low-ABV spritzers are staying around, but more for fun and refreshment than anything core.
Global Flavors and Botanicals
- Yuzu, hibiscus, lychee, turmeric, matcha—Gen Z is all in.
- They are adventurous with their palate, seeking globally inspired drinks.
- Botanicals like lavender, basil, and rosemary feature heavily in RTD cocktails.
Ready-to-Drink (RTD) Cocktails
- Where convenience meets creativity. Canned Palomas, CBD-infused iced teas and nitro cold-brew cocktails.
- Gen Z isn't waiting 10 minutes for a cocktail at the bar, they want it on-demand and don't need to sacrifice quality.
At-Home Drinking and Experiences
- Gen Z drinks at home more than Millennials did. House parties, streaming hangouts, and recipe-sharing on TikTok shape their drinking culture.
- Cocktail kits and customizable drinks fit their DIY spirit.
For Gen Z, drinks are about vibes—not alcohol content.
Also Read: 10 Best Vodka Mixers to Elevate Your Cocktail Game in 2025
What Millennials Drink: Health, Convenience, and Purpose
Millennials may not be as sober-curious as Gen Z, but they’re far from traditional. Their habits reflect a balance of craft, health, and occasional indulgence.
Craft Beer and Premium Alcohol
- Millennials began the craft beer boom and continue to support small designers and producers who are brewing small-batch beers.
- Whisky, tequila, and gin are also very popular, particularly the premium and limited releases.
- Natural and organic wines are growing in value due to health and sustainability.
Low-Alcohol and RTDs
- While they drink more alcohol than Gen Z, Millennials love low-alcohol options for weeknights.
- RTDs are popular not just for convenience but also as a way to try trendy flavors without bar prices.
Sustainability and Transparency
- Millennials are more brand-loyal than Gen Z if the brand aligns with their values.
- Eco-friendly packaging, fair-trade sourcing, and carbon-neutral pledges resonate strongly.
Occasional Indulgence
- Millennials don’t shy away from indulgence, whether it’s a fine bottle of champagne, an artisanal IPA, or a handcrafted cocktail on vacation.
- Unlike Gen Z, alcohol is still central to many of their celebrations.
Beer, Wine, and Spirits: Who Prefers What?
Gen Z
- Beer and wine are losing ground with this group. They don’t see much cultural “cool” factor in traditional lagers or red wine.
- Spirits are more appealing, especially when reimagined in low-ABV or RTD formats.
- Non-alcoholic beers are growing rapidly, appealing to their wellness-driven choices.
Millennials
- Craft beer remains their playground. They value flavor depth and brewery culture.
- Wine is still significant, particularly premium, organic, and biodynamic wines.
- Premium spirits like whisky, gin, and tequila remain strong, especially in cocktail culture.
Market stats (2025):
- RTD cocktails are increasing in sales by 12% each year, with much of that driven by Gen Z.
- Sales of premium wines are seeing a 6% increase among Millennials, with organic wines accounting for a third of that increase.
- The demand for non-alcoholic beer shows steady growth with very little of it driven from Gen Z.
Food, Occasions, and Social Trends
Gen Z
- Drinks at home, paired with DIY cooking experiments.
- Social media drives exploration—viral cocktail hacks, TikTok “drink challenges,” and influencer pairings.
- Customization is key—they want drinks they can personalize.
Millennials
- More likely to go out to breweries, wine bars, and cocktail lounges.
- Value eco-friendly and inclusive environments.
- Travel and food culture heavily influence their beverage choices—think wine tours, whisky tastings, and brewery visits.
The Wellness and Sustainability Factor
Both generations are heavily influenced by wellness and sustainability.
- Health-first Choices: Low-calorie, low-sugar, and functional ingredients dominate shopping lists. Drinks infused with probiotics, adaptogens, and CBD are mainstream in 2025.
- Eco-Friendly Packaging: Glass-free formats, recyclable cans, and minimal waste packaging resonate strongly.
- Transparency: Clearly labeled ingredients and sourcing details are essential. Hidden additives are a turn-off.
These values are no longer niche—they’re baseline expectations.
Where the Drinks Market Is Heading Next
So, where does all this lead?
- For Gen Z - The future includes bold flavors, wellness alternatives, and authentic brands. Look for more alcohol-free bars, functional drinks, and globally inspired RTDs.
- For Millennials - Premiumization for consumers. They will invest in higher-quality wines, spirits, and craft beer, while complementing them with healthier options.
- For Both - Social media and personalization are imperative. Brands must change their storytelling to be more emotional and transparent.
The future drinks market isn’t just about alcohol anymore. It’s about identity, wellness, and shared experiences.
Conclusion
While millennials and Gen Z share values around things like wellness and sustainability, their drinking cultures are quite different in interesting ways.
- Gen Z: Drinks less alcohol and embraces novelty and functional, global flavors.
- Millennials: Drinks more alcohol than Gen Z, but balances it with wellness-based choices, premium products, and sustainability.
For consumers, this change means more diversity and creativity on shelves than ever. For brands, it is both a challenge and an opportunity: to offer authenticity, transparency, and flavour innovation, or risk fading into irrelevance.
In 2025, drinking will not only be about what is in the glass, it will be about what it says about you.
