The global alcohol industry has taken one of the biggest hits in its history, losing more than 830 billion dollars in market value between 2021 and 2025.
The cause behind this collapse is tied closely to the behaviour of Gen Z, the first generation to approach nightlife with a noticeably different relationship to alcohol. Data from recent financial analyses shows that alcohol consumption among young people has been dropping year after year.
Gen Z drinks less frequently, chooses lighter options, experiments with alcohol free alternatives and approaches nightlife with a mindset shaped by wellness culture, mental health awareness and a different understanding of social experiences.
Clubs and bars around the world are noticing the shift. While venues remain full and parties continue to thrive, the habits inside them look different from the past. Many young people go out for the music, the community and the moment, not for heavy drinking.
This cultural change has removed a huge amount of economic pressure from alcohol sales and has pushed major brands into a historic market decline. Analysts say this trend will continue, and the industry will need to adapt to survive.
Whether through alcohol free products, new marketing strategies or a renewed focus on experience rather than consumption, the next chapter of nightlife is being shaped directly by Gen Z and their new way of partying.
Sources: Bloomberg tracking index data via The Drinks Business, IWSR Bevtrac consumer research, Eventbrite nightlife trends report, and industry analysis from Barclays and Bell Asset Management.
