Mindful Consumption: What Gen Z’s Alcohol Choices Mean for Food Brands

Alcohol has long been associated with relaxation, socialization, and celebration. But CPG food marketers who track consumer trends know that Gen Z’s relationship with alcohol looks significantly different. 

In marked contrast to previous generations, Gen Z is shifting away from alcohol and towards wellness-focused, functional products. In fact, according to NielsenIQ, a full 41% of Gen Z reports they’re drinking less overall. And it appears Gen Z is at the vanguard of a larger movement. As new research underscores the adverse health effects of drinking, the broader culture is reevaluating its relationship with alcohol. Reflecting this trend, the global no/low alcohol market is projected to grow by $4 billion by 2028. 

But Gen Z’s revised approach to alcohol isn’t a simple story of rejection or sobriety. Instead, it’s part of a fundamental reimagining of consumption choices that extends far beyond beverages and into the broader food landscape.

Gen Z’s Approach to Alcohol: Redesign, Not Rejection

Gen Z isn’t necessarily “anti-alcohol.” But they are more intentional about when, where, and how they consume beer, wine, and spirits. Rather than defaulting to alcohol for celebratory, social, and relaxation purposes, today’s younger consumers are exercising greater choice over their consumption experiences.

You’ll still find them sipping the occasional Absolut or Aperol at a party or music festival. But depending on the occasion and their desired outcome, they’re just as likely to opt for a THC gummy, a zero-proof cocktail, a CBD-infused beverage, or an adaptogenic drink. This represents a significant shift from all-or-nothing approaches to more fluid, personalized consumption patterns (think “California sober”). 

Gen Z’s growing preference for alternatives isn’t isolated to certain segments; it’s widespread across the demographic. Additionally, research shows Gen Z is more likely to prefer cannabis over alcohol than their millennial counterparts, signaling a broader cultural shift in how younger consumers approach mood-enhancing substances and social experiences.

Though Gen Z is leading the charge, this trend extends to other demographics, too. Older generations are also reevaluating their relationship with alcohol. In fact, nearly half of all Americans say they’re planning to cut back in 2025. On top of that, the Surgeon General recently called for cancer warning labels on alcoholic beverages, which kicked off a spate of reporting on the negative health impacts of alcohol consumption. 

What’s Driving the Shift?

Several key factors are reshaping how Gen Z approaches alcohol consumption. 

Mental Health Takes Priority

After navigating the pandemic’s psychological impact, younger generations are prioritizing emotional wellbeing like never before. They’re increasingly aware of alcohol’s potential negative mental side effects — from heightened anxiety to disrupted sleep patterns — and they’re seeking alternatives that support rather than hinder their psychological health.

Function Over Fog

Today’s hyper-prescriptive society offers a solution for everything, and Gen Z is particularly savvy about self-diagnosing and protecting their mood and productivity. They’re seeking functional benefits from what they consume rather than temporary escapes.

Personalized Wellness

With smartwatches tracking sleep, apps measuring mood, and TikTok wellness culture booming, personal health data influences daily choices more than ever before. This tech-enabled personalization extends naturally to consumption habits, with younger consumers making more deliberate choices based on desired functional outcomes.

Digital Shifts in Social Connection

As digital channels partially eclipse in-person social interactions, the traditional role of alcohol as a social lubricant has diminished. With many social interactions occurring online, there’s simply less consistent opportunity or perceived need for alcohol consumption.

Implications & Tactics for Food Marketers

Evolving consumption patterns matter to food and beverage brands, whether your products traditionally partner with alcohol (think snacks and social occasions) or occupy completely different categories. That’s because this shift reflects deeper value changes around how consumers approach indulgence, health, and social connection.

Connecting with Gen Z — and, to an extent, millennials, Gen Xers, and baby boomers — means thinking carefully about how products are positioned, how occasions are framed, and how messaging aligns with a broader focus on wellness, mental health, and intentional living. 

Brands that meet consumers where they are with more inclusive, flexible, and mindful options are better positioned to maintain cultural relevance.

Note, however, that not every brand needs to pivot dramatically. Indulgent food brands like Oreo or Ben & Jerry’s aren’t likely to launch functional, adaptogenic versions of their core products. The opportunity lies in understanding how your brand fits into this new landscape of intentional consumption.

For some, it might mean subtle messaging shifts that acknowledge the spectrum of choices consumers make. For others, it might inspire new product lines or collaborations that tap into the growing market for functional alternatives.

Consider the following approaches, organized from lightest to heaviest lift: 

1. Messaging and Visual Updates

• Curate celebration scenes differently by showing gatherings with diverse drink options (alcohol, mocktails, functional beverages) for greater inclusivity.
• Update language to acknowledge the role of functional wellness goals. For instance, you might go from a simple “Cheers” to more intentional messages like “Celebrate your way” or “Cheers to feeling good.”
• Position products based on functional emotional outcomes: energy, focus, calm, or relaxation.
• Highlight the role food plays in supporting mental wellbeing, not just physical health.

2. Strategic Partnerships and Moments

• Collaborate with adjacent brands that offer adaptogenic beverages, better-for-you snacks, or wellness-oriented products.
• Partner with wellness influencers or mental health advocates who naturally discuss balance, mindful consumption, and personalized approaches to feeling good.
• Align marketing with cultural moments like Dry January, Mindful May, or Sober October.
• Create content that acknowledges and celebrates the spectrum of consumption choices.

3. Innovation and Repositioning

• Launch or spotlight alcohol alternatives like functional beverages, wellness-forward mocktails, and adaptogenic drinks.
• Develop food pairings designed for specific occasions or functional outcomes.
• Consider brand repositioning that embraces wellness, mental health, and intentional living as core values.
• Host or sponsor sober-curious events that align with mindful celebration trends.

The New Rules of Consumption: Choose Your Own Adventure

Gen Z isn’t abandoning alcohol entirely. They’re selecting it more intentionally and expanding their repertoire of “Choose Your Own Adventure”-style consumption options based on desired outcomes. This reflects a broader shift toward more deliberate, personalized choices across all consumption categories.

Food marketers who recognize this as more than just a fleeting trend will find opportunities to connect with younger consumers in more authentic ways. Whether through light-touch messaging updates or more substantial product innovations, brands that celebrate flexibility, wellness, and mindful occasions will maintain relevance in this evolving landscape.

The key is meeting consumers where they are — not where they used to be — and recognizing that today’s young adults simply have more options when choosing what to consume and how to feel good.