Most people know by now that Gen Z is transforming drinking culture, consuming less alcohol than previous generations. But this shift doesn’t signal disinterest in drinking altogether.

Instead, Gen Z are reshaping their habits and rituals, with a focus on wellness and mindful choices - but this generation still wants to let loose and have fun or enjoy a couple of cocktails from time to time.

From innovative hospitality offerings to at-home drinking trends, their preferences reflect a demand for both quality and purpose in their beverages.

The Role of Hospitality in Gen Z's Drinking Choices

For Gen Z, drinking is no longer synonymous with a night out at bars or clubs.

While nearly a third of UK nightclubs have closed since 2020, Gen Z’s preference for meaningful, value-driven experiences is reshaping the hospitality sector around the world.

Bars, restaurants, and drinks brands are being challenged to meet the generation’s demand for innovation, authenticity, and safety while still satisfying their legacy audiences.

80% of Gen Z report concerns about nightlife harm, prompting them to seek safer, more inclusive venues or to indulge in sophisticated at-home drinking experiences.

Gen Z is also redefining what it means to "drink." 

Functional beverages, from CBD-infused drinks to adaptogenics, have gained traction alongside traditional alcoholic options.

This shift presents opportunities for the hospitality industry to lead in education, product innovation, and creating experiences that resonate with younger audiences.

From Clubs to Cocktails at Home

The hospitality industry has also seen impact because of Gen Zs championing the ‘nights in’ trend.

As of last year, 37% of consumers are making more cocktails at home. This demand for premium at-home experiences has opened avenues for bars, hotels, and restaurants to reimagine their offerings.

This has given rise to ready-to-drink (RTD) products from brands such as White Claw hard seltzers and MOTH.

Quality is paramount for Gen Z, whether they’re at home or visiting a bar.

The desire for RTD products presents a big opportunity for hospitality brands - well-known or up and coming - to create products that meet Gen Z’s desire for high-quality, accessible beverages they can drink on their own time.

Just because you can’t get people in through the door like you used to, doesn’t mean they’re not potential customers any more, and in fact, having them fall in love with an RTD product could make them think of you first when they do fancy heading out.

Alternative Beverages in Hospitality Spaces

Hospitality venues are increasingly catering to Gen Z’s interest in functional beverages that ‘hydrate with benefits’.

These include CBD drinks, kombuchas, and mood-enhancing options that seamlessly integrate into their daily routines.

From morning functional shots that aid in gut health to social CBD cocktails in the evening, Gen Z tend to have a range of drinks that serve them through the day.

Venues that incorporate such innovative, experiential beverages into their menus can capture this growing market segment, whether through non-alcoholic pairings or functional drink flights.

The Shift to Mindful Drinking

Gen Z focuses heavily on experiences, flavours, and ingredients that align with their values and priorities over just drinking to get drunk.

Bars and restaurants are responding by creating immersive experiences that blend gastronomy, mixology, and storytelling.

Additionally, almost two-thirds of Gen Z are open to alternating alcoholic drinks with non-alcoholic options, presenting an opportunity for venues to expand their menus with thoughtful, high-quality alternatives that keep customers hydrated and away from the dreaded hangover.

Post-pandemic, Gen Z also values social connection and wellbeing more than ever, so Gen Z do want to go out, they are just choosing their moments far more carefully and frugally than previous generations did.

For hospitality venues, the takeaway is clear: success lies in crafting environments and offerings that foster connection and prioritise wellbeing.

Hospitality Insights and Opportunities

1. Purpose-Driven Offerings
   Gen Z prioritises beverages with added value, such as health benefits or sustainable production. Hospitality brands that focus on transparency, quality, and innovation can stand out by offering unique cocktails, functional drinks, or bespoke menu items.

2. Premium At-Home Extensions
   With Gen Z willing to spend on quality, there’s room for bars and restaurants to expand into premium RTD offerings. This not only drives revenue but also strengthens brand loyalty by bringing the venue experience into customers' homes.

3. Elevating Non-Alcoholic Options
   Non-alcoholic beverages should be as thoughtfully crafted as their alcoholic counterparts. Bars and restaurants can benefit from investing in creative mocktails, functional drink pairings, and educational tastings to engage sober-curious patrons.

4. Creating Safe and Inclusive Spaces
   Safety is a top concern for Gen Z in nightlife. Hospitality venues that focus on creating inclusive, welcoming spaces, offering sober-friendly events or intimate settings, can build trust and foster long-term loyalty.

Conclusion

Gen Z will continue to challenge traditional norms around everything, drinking included.

By embracing their values and evolving preferences, you can not only adapt but thrive in the new era of drinking culture, by creating new kinds of experiences within your venues.

It’s also very easy to assume that Gen Z are going out less frequently, therefore our revenues will drop, but that doesn’t have to be the case: you can create new revenue streams through RTD products and new kinds of venues or experiences entirely.

Things will never be the same again, too many big moments have shaped Gen Z’s attitudes for that to be the case, so rather than fighting change, you now have a big opportunity to help lead it.