Generation of moderation: How Gen Z is fuelling the growth of the no/lo market

Getting wasted, sozzled or hammered in your teens and early twenties used to be a rite of passage, but that’s changing in 2024 as over a third of 18-24-year-olds are turning their backs on alcohol.

If you ask around the GOLD79 office, most of us have a tale or two of drunken misadventures from our youth. Gen Xers have hazy memories of the lad/ladette drinking culture of the ‘90s, and Millennials can still taste the alcopops they guzzled in the noughties.

However, according to recent survey data, 32% of Gen Z respondents say they don’t drink alcohol at all, compared with 25% of Millennials and 23% of 50-64-year-olds[1]. This downward trend continues with Google searches for ‘pubs/clubs near me’ and ‘hangover cure’ all down, suggesting society as a whole is cutting back on booze.

So, with hashtags #sobrietyquotes, #soberissexy and #sobercurious on the rise across social media, we take a look at why Gen Z are turning their back on alcohol, and which brands are capitalising on this Sober Revolution.

An expensive habit

One of the more obvious reasons is simply the cost of booze. It’s no secret that the post-Covid world is more expensive, with inflation still high and personal finances tight.

At the end of 2023, alcohol inflation hit a 31-year high, meaning the cost of a pint is now estimated to be ￡4.70, up from ￡4.24 in December 2022.[2] Those pennies add up over a round or two at the pub.

It’s not just alcohol that’s been expensive over the past few years – oil, gas and consumer goods have all rocketed in price, meaning wages are stretched even more thinly, and there is less money to spend on boozy nights out (or in).

In a recent survey, 18% of respondents were influenced by price when it came to their preference for going alcohol-free, with many searching for a low/no alcohol alternative that’s cheaper than the alcoholic version[3].

Health is wealth

Another reason for Gen Z’s embrace of sobriety could be that they are more in tune with their mental health in a way that Millennials, Gen X and Baby Boomers weren’t at their age.

Almost two-thirds of Gen Z consumers are worried about the emotional impact of alcohol,[4] and they are more likely to talk about their mental health than any other generation[5]. Perhaps we’re finally realising that alcohol isn’t a quick-fix solution – in fact, quite the opposite.

Where a 20-something in the 90s or early 00s may have drunk their problems away, only 22% of Gen Z drinkers indulge to boost their mood.[6] Gen Z is more likely to recognise the negative impact of excessive alcohol on their mental and physical health and take action to curb their consumption.

Online, off the drink

As so-called ‘digital natives,’ Gen Z is at home on the internet, so it’s no surprise that teetotal influencers are extremely popular right now.

Millie Gooch, author and founder of Sober Girl Society (with almost 80k Instagram followers) quit alcohol at age 26 after realising it was exacerbating her low mood, causing blackouts and increasing her anxiety. She told the BBC, “I was really struggling, I didn’t enjoy my life and I was miserable.”[7] By sharing her sober journey online, and by setting up Sober Girl Society, she’s created a powerful online community where people feel supported and inspired in their sobriety.

Online communities and creators are a big influence on all areas of consumption for Gen Z, so it’s not a surprise that the culture around alcohol is shifting with the opinions of online figures.

Sober voices

While there are other factors in play, we mustn’t underestimate the power of role models in the decision to quit booze. Time Magazine’s Woman of the Year 2023, Taylor Swift, recently revealed to InStyle[8] that she gave up alcohol to prepare for her record-breaking Eras tour: “Doing that show with a hangover… I don’t want to know that world.”

It's not just singer-songwriters who are sober-curious, but superheroes too – Spiderman actor Tom Holland is also teetotal. He remarked on Jay Shetty's podcast, On Purpose, that quitting alcohol was “the best thing I’ve ever done.” Holland’s sober sentiments are echoed by another alcohol-free celebrity, Daniel Radcliffe, who embraced sobriety after filming the Harry Potter franchise, remarking to The Telegraph:[9] “It’s lovely. I barely think about it [alcohol].” Both Holland and Radcliffe imply that life is simpler and purer without the influence of booze, and feel their work is of higher quality too.

We may not be able to relate to international superstars on many levels, but most of us can empathise with their aversion to working hungover. Whether it’s nausea, a splitting headache or sheer exhaustion – it’s very hard to function at full capacity while ‘hanging.’ Ambitious Gen Zers who want to get ahead in their careers – or simply get out of bed in the morning after a night out – know that drinking excessively can severely hamper their efforts.

Big spenders

It’s estimated that Gen Z represents ￡353bn in spending power across the world[10], and as a generation, is extremely discerning about where they place their purchasing power. So, if 18-24-year-olds are shying away from alcohol but still socialising, what refreshment do they choose?

Cue a battle between established alcohol brands and new non-alcoholic challenger brands to create delicious alcohol-free alternatives and nab a share of Gen Z’s pounds.

The big brands racing to 0%

Beer

Alcohol-free beer is one of the bestselling non-alcohol options on the market. Last year, Tesco said sales of no and low-alcohol beer were 25% higher in June than they were at the start of the year – showing that going booze-free is increasingly moving well beyond being just a “dry January” trend.[11]

Unsurprisingly, the non-alcoholic beer market is dominated by Heineken, which first produced its popular 0.0% ABV beer in 2017. This quickly became the best-selling non-alcoholic beer in the UK by 2022,[12] outselling its nearest competitor, Becks Blue, by a cool ￡20 million.

In response to a growing consumer taste for non-alcoholic drinks, Guinness intends to almost triple production of its zero-alcohol brand at its brewery in Dublin. Guinness 0.0 – launched in 2021 – is the top-selling non-alcoholic beer in a four-pack format in Great Britain.[13]

Bringing up the rear is relative newcomer, Brewdog, the UK’s biggest craft beer brewer. Brewdog launched their “AF” range in 2020, to complement “Nanny State,” their original 0% offering. Professing to “dial down the alcohol, not the beer,” BrewDog is hoping to take up some of the hotly contested sober Gen Z market share in the UK - its alcohol-free mixed pack is the best-selling AF mixed pack in America.

Wine and spirits

The Vintners Company has devised tasty non-alcoholic wines to tempt the tastebuds of the sober population – although Gen Z is more likely to reach for non-alcoholic spirits than any other 0% alternative.

The non-alcoholic spirits market is buoyant, propped up by Gordon’s and Sipsmith, which has an aptly named alcohol-free gin named “FreeGliderTM” to denote its alcohol-free nature and smooth taste.

Experiential

It's not just drinks brands that are catering for the sober curious, but music festival organisers too. Realising that many festivalgoers want to have a zero-proof experience, Glastonbury, Parklife, and Coachella are all creating sober spaces and offering bespoke booze-free bars and zones.

Even Oktoberfest, the German festival renowned for its huge bierkellers and frothing double pint glasses, offers non-alcoholic beer in almost all of its tents.

New contenders

Back to beer, and there’s a new kid on the block: Lucky Saint. As Trustpilot’s top-rated alcohol-free beer, Lucky Saint is making waves in the alcohol-free market. Its volume growth has rocketed by 180% in the last year (2022-23), and it even opened a flagship pub in London in March 2023.[14] Its advertising displays a cheeky tone of voice, but centres around the concept of consumers being ‘saintly’ and not giving in to the temptation of alcohol.

With the no/lo market being one of the fastest-growing in the UK, it’s no surprise that entrepreneurs are capitalising by creating brands founded on alcohol-free principles. Take Clean Co. for example, which sells purely non-alcoholic gin, rum and tequila, and is one of the most-searched-for brands on Google.

Another brand waving the flag for non-alcoholic spirits is Everleaf. Its B Corp certification sets it apart from most other brands in the alcohol-free space and provides another reason for sustainability-conscious Gen Zers to indulge.

What’s next for the no/lo market?

There will always be a demand for alcohol in the Western world, but there is no doubt that times are changing. Whatever the true underlying reasons (and there are many), we have already seen a sizeable shift towards non-alcoholic drinks.

With new brands pushing into the non-alcoholic drinks market, the race is on for established brands to become more innovative and use their existing brand power to sell alcohol-free options to a more discerning, mindful younger generation. Even better, if brands can make their non-alcoholic offerings more sustainable in their processes and packaging, it’s likely that they will have Gen Z’s loyalty for life. But that’s a story for another day.

Gen Z’s sober curiosity is an opportunity to normalise sobriety for future generations. With more non-alcoholic products and spaces available, we look to be well on the way to a happier, healthier society where the shackles of boozy peer pressure are a thing of the past.

[1] YouGov

[2] ONS

[3] Mintel

[4] Mintel

[5] ONS: 8% Gen Z say they wouldn’t talk to anyone about MH compared with 13% Millenial and 17% 50+

[6] Mintel

[7] BBC

[8] InStyle

[9] The Telegraph

[10] BBC

[11] The Guardian

[12] Statista

[13] The Guardian

[14] The Guardian