Gen Z’s Alcohol Habits Shift as Economic Conditions Improve

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For years, Gen Z has been known for drinking less or embracing sobriety. But new data suggests a shift. According to a recent IWSR survey covering 26,000 people across 15 global markets—including India—Gen Z’s alcohol consumption is on the rise. Among legal drinking age (LDA+) Gen Z adults, alcohol use increased from 66% in March 2023 to 73% in March 2025, approaching the 78% rate of all adults.

This renewed interest comes after a period of moderation, which experts attribute to economic factors. Richard Halstead, COO of Consumer Insights at IWSR, explains, “Gen Z came of age during a cost-of-living crisis. Rising prices, especially in bars and restaurants, limited their alcohol consumption.” As more Gen Z individuals join the workforce and earn higher incomes, their drinking patterns are expected to follow trends seen in older generations like millennials.

India emerges as a standout market, bucking global declines. Gen Z not only drinks more but also drives industry trends with their evolving preferences. Halstead notes that India shows strong growth across all indicators: consumer sentiment, volume, and spending. “India is continuing to power ahead, with that momentum set to continue and younger drinkers to the fore,” he adds.

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The survey emphasizes that the overall dip in alcohol consumption globally is cyclical, not structural, and not due to generational shifts. Interestingly, Gen Z displays more experimental behavior, trying over five alcohol categories on average—more than any previous generation. They also favor spirits and are more likely to drink at social venues like bars and clubs.

As economic pressures ease, Gen Z’s influence on the alcohol industry—especially in markets like India—is poised to grow even further.