How Gen Z is reshaping beverage alcohol

Beverage alcohol is in a reset, not a collapse. People from millennials to Gen Z still drink, but they’re changing what they buy and when and where they enjoy it. And that is opening new ways to grow across beer, RTDs, spirits, and wine.

We recently released Raise the Bar: H2 2026 Edition, a new trends report from the Southern Glazer’s Commercial Intelligence team. Its message is simple: go on offense and understand where the consumer is heading.

One of the best places to start is the next generation. New drinkers aren’t just adding a seat to the table. They’re reshaping the category entirely, focusing on flavor, convenience, and easy-to-understand drink options.

Gen Z and millennials now make up 35.6% of households, up from 29% in 2021. They are projected to become the top-two beverage alcohol spending generations by 2035. Gen Z households have grown from 4% in 2021 to 7%, though their spending is only about one-third of Boomer levels.

That gap makes this a long-term recruitment initiative. The category still depends heavily on older consumers; in wine, nearly two-thirds of drinkers are 45 or older. Brands have to maintain that loyal customer base while building relevance with younger consumers who are still forming their own preferences. 

Gen Z drinking habits are shaped by a few recurring considerations: flavor, convenience, and a low-risk way to try something new. Gen Z is also curious about cocktails, but leans toward approachable choices. Anything that feels familiar, portable, and easy to try creates better opportunity to develop individual likes and dislikes. Wine, spirits, beer, and RTDs each need to meet the Gen Z consumer differently. Take a look at our latest trends report to see how each category is doing just that. 

RTDs are a strong fit for Gen Z drink choices, making the format a strong entry point into beverage alcohol. RTDs are portable and ready to drink, so there’s nothing to mix, and no expertise needed. Yet many on-premise accounts still have limited RTD placements on the menu and backbar. The report advises giving RTDs a wider platform, making them more discoverable.

For Gen Z, flavor is usually the first way in, so low-risk sampling matters. Variety packs outperform single-flavor packs across RTD cocktails and hard seltzers, since shoppers can discover what they like before they commit. On beer menus, 37% of Gen Z drinkers prefer berry flavors, compared with 19% of all drinkers.

Beer cocktails can be a bridge between beer and flavor exploration. Thirty-one percent of Gen Z drinkers prefer formats such as micheladas, versus 9% of all drinkers. A Michelada can put beer in the running on occasions where a cocktail or RTD would usually win.

For nearly half of Gen Z drinkers, their first alcoholic drink was spirits-based. Our H2 2026 report found 75% enjoyed their first drink and 85% still drink the same beverage or a similar one. A positive first experience tends to stick.

Take tequila, for example. Gen Z over-indexes with the category, and 55% of Gen Z drinkers had it in the past year. That creates a natural path to high-velocity cocktail occasions. The report suggests expanding tequila’s role at celebrations and parties to keep that interest going.

Innovation can help, too. The report says it is softening category declines, and spirits-based cocktails alongside American whiskey lead the way. Together they make up 43% of spirits innovation brands and 73% of innovation dollars. More options alone won’t do much. Consumers need a reason to try something new, and then a reason to come back and trade up.

Wine is a bright spot with Gen Z, where spending is up 8% versus 2020. Fruit wine, blush, and bubbles over-index with this group, which the report calls “a recruitment opening to build lifetime loyalty.”

Younger consumers may be more put off by how wine is presented than by the wine itself. One in four wine drinkers said they experienced a flavor mismatch. About two in three infrequent drinkers said clearer labels would make them buy more often, and 90% of wine drinkers surveyed said flavor scales on wine labels would help them choose.

Wine is social and aspirational, but to compete in today’s market, it has to feel easier to understand and choose. Plain-language flavor descriptions and shelves and menus organized by style or occasion can help. The goal is clear and confident presentation without stripping away what makes the wine interesting.

Marketing for the next generation doesn’t mean chasing trends. It means understanding how younger consumers find and choose beverages, then identifying what brings them back. Flavor options, convenience, and simpler decisions show up in every category the report covers.

Gen Z consumers are still forming their drinking preferences, which gives brands a critical window to build new loyalty, while maintaining an already loyal customer base. The next generation isn’t walking away from beverage alcohol. They’re simply asking the industry to meet them differently.

Learn more about the opportunities shaping beverage alcohol in 2026 by reading Southern Glazer’s full inaugural Raise the Bar Report: 5 Ways to Win in Beverage Alcohol.