Recent findings from a survey conducted by IWSR highlight a notable decline in monthlong alcohol-abstinence initiatives among Gen Z consumers in Australia. The latest Bevtrac survey reveals that only 24 percent of Gen Z legal drinking age (LDA+) individuals reported abstaining from alcohol for a month or longer in the past six months, a significant drop from 39 percent measured earlier. A similar trend is evident in the UK, where monthlong abstinence rates among Gen Z LDA+ drinkers also fell, from 33 percent to 24 percent.
Salvatore Margiotta, owner of Carlingford Cellar Door in Sydney, corroborated the survey’s results, observing a general trend toward moderation rather than strict abstinence. He noted seasonal dips in sales during designated abstinence months such as January and Dry July, but emphasized that this phenomenon transcends age groups. Margiotta pointed out that younger drinkers today consume less alcohol compared to both their peers in the past and middle-aged consumers currently. He also remarked on a growing distinction in preferences, with some younger consumers favoring lower alcohol by volume (ABV) options while others seek higher ABV alternatives.
Jonathan Boadle, General Manager at Casa De Vino in Melbourne, echoed these observations, stating that both Gen Z and Millennial demographics are more inclined to make mindful drinking choices throughout the year, reducing the necessity for periodic resets through extended abstinence. He highlighted how drinking has become more experiential for younger generations, aligning with social activities like music festivals and sporting events.
Moderation is emerging as a significant trend in the beverage alcohol industry, according to Marten Lodewijks, IWSR President and Managing Director. While the concept of performative abstinence has waned, consumers are moderating their drinking habits by consuming alcohol less frequently and opting for smaller quantities when they do. Economic factors, including declining disposable income, are playing a crucial role in this shift.
Boadle pointed out that rising cost-of-living conditions are influencing consumer behavior in liquor stores. Some shoppers, he noted, are maintaining their overall consumption but opting for more affordable options. Others are choosing to drink less overall but are investing in higher-quality products when they do purchase alcohol. This “drink less, drink better” approach is particularly evident among late Millennials and Gen Z, especially concerning wine purchases.
The IWSR data indicates a stabilization in the drinking rates of Gen Z LDA+ consumers, with these rates gradually aligning with those of the general population. In mid-2025, 74 percent of Gen Z LDA+ respondents reported consuming alcohol in the preceding six months, a significant increase from the 66 percent reported in early 2023.
Looking ahead, Margiotta anticipates trends in 2026 will reflect a stable engagement from Gen Z drinkers, with an increasing interest in single-serve wines, six-pack sales of beer, and small-format spirits. There’s also heightened curiosity about alternative wine varieties, suggesting a shift in purchasing behavior rather than merely a trade-down in terms of cost.
Boadle believes that the demand for premium products—particularly those associated with discovery and experience—will continue to escalate. He highlighted the strong growth of premium Tequila over recent years and noted early momentum for consumers exploring less common spirit categories such as rum, Cognac, Armagnac, and Calvados.
As younger consumers seek unique and intriguing products, the liquor industry appears poised for continued evolution, blending mindful consumption with a focus on quality and experience.
