This generation, born between 1998 and 2012, the first to come of age in the digital era, wants healthy options, bold flavors and much, much more.
By: Louis Livingston-Garcia
Gen Z is reshaping the beverage industry with a preference for bold flavors, health-conscious options and experiences, both online and in-store.
Right now, a full 20% of the U.S. population belongs to Gen Z. By the year 2030, this group’s spending power is predicted to reach $2 trillion. Understanding their likes and dislikes, not to mention connecting with them where they spend most of their time, is essential to staying competitive.
Only half of Gen Z is of legal drinking age, so only a part of the picture is starting to develop. But we do know that social media platforms like TikTok and Instagram are considered necessities. They are vital sources of information, not just outlets where trends and gossip are discovered. Forbes reports that social media marketing is more “efficient and effective” and can reach more niche markets than television. This fact alone makes Gen Z different from every generation that came before them.
Despite being considered a “digital native” generation, Gen Z does like to shop in regular stores. They value the experience of being able to physically see, touch, and try products before buying, which is not always possible online. Gen Z also appreciates the social aspect of shopping in-person and the ability to discover new items while browsing in a store environment. Something that makes Gen Z truly unique is their relationship with food and beverages. They are significantly more health conscious and appear to drink less alcohol. The post-millennial generation isn’t necessarily abstaining or completely sober, but they are more likely to sample products from many different categories, favoring liquids with bold flavor and low or even no alcohol.
What is Gen Z after in an alcoholic beverage?
While the dust hasn’t completely settled on Gen Z’s habits, a lot of what the generation likes in a drink is fruit-forward, bold, and distinct. An example of this is Corona’s Sunbrew Citrus Cerveza filled with orange and lime peel, making it a bold, citrus-forward drink with a modest 4.5% ABV.
Sunbrew Citrus Cerveza banks on the bold, flavor-forward drink market with a lower ABV Gen Z is looking for. Corona took inspiration from a viral TikTok cocktail, the Corona Sunrise, made with tequila, a bottle of Corona, orange juice, grenadine, and lime juice. With 14 million views, the cocktail was a popular flavor and trend to follow (more on social media’s impact below).
vibrant, fruit-forward drinks, often inspired by TikTok tends.
Sunbrew explores those same flavor notes to satiate Gen Z’s fondness for exploring different types of drinks and inquisitive nature, which has allowed TikTok cocktail trends to become an “it” thing out of nowhere.
Molson Coors developed a Gen Z culture panel to help with product development, which is how Happy Thursday came to be. The panel helped Molson Coors select its four flavors: strawberry, pineapple starfruit, black cherry, and mango passionfruit. Its low 4.4% ABV is also a way for it to adhere to low-alcohol trends and the health-forward mindset. And through the panel, Molson Coors also learned Gen Z doesn’t care for carbonation. TikTok videos of people using a milk frother to decarbonate their drinks also informed this product’s development. A big selling point of Happy Thursday is its lack of carbonation which reduces bloating and the sensation of burning.
More than ever, brands must evolve and tether themselves to trends, especially as these alternatives to traditional drinks gain more sales ground and continue to grow. Low ABV, NA drinks, ready-to-drink cocktails, spiked iced tea, hard seltzers, and noncarbonated drinks are all part of this ever-increasing Gen Z segment.
Non-carbonated and refreshing, Happy Thursday was designed with Gen Z’s flavor preferences and health-conscious mentality in mind – no bubbles, just bold taste.
HOP WTR is an example of a product that allows Gen Z to enjoy fun flavors and still maintain a healthier lifestyle because it has no sugar, carbs, alcohol, or calories. Last year, HOP WTR sales increased by nearly 200%.
Gen Z by the Numbers
Drizly, Statista, and the World Finance Report statistics reveal how Gen Z drinkers differ from previous generations.
- Gen Z drinks 20% less than millennials, and millennials drink less than previous generations.
- 86% of Gen Z factors mental and physical health together when considering alcohol.
- 38% of Gen Z is more likely to try non-alcoholic drinks.
- 54% of Gen Z use TikTok to research drinks and drink trends. Gen Z is more likely to drink alternatives to beer, such as hard iced tea, pre-mixed cocktails, and hard seltzer.
- 57% of Gen Z would choose brands that align with their ethical and social beliefs, including sustainability, inclusivity, and ethical business practices.
- Women made up the majority of alcohol consumers under 25 in 2019, an industry first.
About the Author: Louis Livingston-Garcia helms the Tulip and Schooner beer and spirit newsletter for Heavy Table. If he isn’t traveling around the world with his wife to photograph wild bears, he is most likely playing soccer, watching soccer, playing video games, or reading with a pint of hazy IPA in hand.