As Gen Z in the country grows into the legal drinking age bracket, they are sipping less alcohol than the average millennial
From fathers drinking in discreet glasses to young adults sipping with their parents today, urban India has seen a significant change in the openness to alcohol consumption. “Ten years ago, you would walk into a house, pour yourself some Johnnie Walker Black Label amongst 3-4 available options and that was that,” says Anjali Batra, co-founder, Anthem, Food Talk India and Gin Explorers Club. “Today, people are drinking all kinds of spirits as they have access to so much more. They no longer want just a bar or a lounge, they want a concept space. Earlier, dining out was an occasional indulgence, now it’s a way of life.” Aneesh Bhasin, a spirit aficionado and co-founder, Svami, draws a parallel with the evolution of the food industry in India. “A decade ago, we were not discussing textures of dishes, and as people started becoming more aware of food, largely thanks to TV shows like Masterchef Australia, drinks were a natural part of the movement.”
If you’re part of India’s growing urban population, it’s not uncommon to find a new restaurant or bar opening every other week, with concept-driven food and beverage programmes at the centre. “Rapid urbanisation, globalisation, and increasing disposable incomes have led to a shift in societal attitudes towards alcohol,” says Pawan Shahri, co-founder, Chrome Hospitality Asia. “This shift also reflects in the proliferation of bars, pubs, and lounges across major cities, providing social spaces for drinking and socialising outside of the home.”
What do we like to drink?
The increased purchasing power among millennials and Gen Z translates into a demand for a better experience that goes beyond the spirit in their glasses. “Today’s consumers are increasingly discerning and are drawn to premium, artisanal spirits that boast rich narratives, unique preparation techniques, and high-quality ingredients,” says Vikram Damodaran, chief innovation officer, Diageo India. “They are attracted to brands with strong values, evident through their philosophy, initiatives, and design ethos. As consumers continue to seek new flavour profiles and limited-edition launches, a slew of homegrown, artisanal brands have emerged across diverse categories gaining recognition nationally and on international platforms,” he adds.
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The increased purchasing power among millennials and Gen Z translates into a demand for a better experience that goes beyond the spirit in their glasses. Image: Instagram.com/gigibombay
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Earlier, dining out was an occasional indulgence, now it’s a way of life, says Anjali Batra, co-founder, Anthem, Food Talk India and Gin Explorers Club. Image: Instagram.com/ginexplorersclub
India has seen a steady gin revolution over the last few years with both international and local brands cropping up swiftly. “We started Stranger & Sons with the sole objective of putting an Indian gin on the global map through its unique and deep-rooted storytelling, thereby connecting audiences with a side of India they had seldom seen,” says Rahul Mehra, co-founder of the brand. “There has been a noticeable rise in the premium spirits segment, and premiumisation isn't just a fleeting trend; it's becoming deeply ingrained in the Indian lifestyle, reflecting a deliberate choice driven by a mix of curiosity and steadily growing disposable incomes.”
Gen Z and alcohol
Statistics from around the globe suggest that Gen Z is drinking less alcohol as compared to millennials. According to reports by NCSolutions, “The share of Gen Zers born between 1997 and 2002 who say they plan to drink less alcohol in 2024 jumped 53 per cent year over year. Sixty-one per cent say they plan to cut back on their alcohol consumption, compared to 40 per cent who said they planned to drink less in 2023.” While this doesn’t mean that they aren’t drinking at all, it spotlights that they are drinking better.
“FORESIGHT STUDIES SHOW THAT CONSUMERS ARE GRAVITATING TOWARDS FIVE KEY ‘POSSIBLE FUTURES’: BRANDS AND PRODUCTS FOR A BETTER WORLD, FOR A BALANCED LIFE, FOR DIGITAL NOMADS, FOR COMMUNITIES, AND FOR EXPERIENCES OF INDULGENCE AND PLEASURE”
Vikram Damodaran
“Gen Z, millennials, and Gen X have distinct drinking behaviours that are influenced by their generational characteristics, societal trends, and cultural norms,” explains Rakshay Dhariwal, director and founder, Maya Pistola Agavepura, Pass Code Hospitality, and co-founder, India Cocktail Week. “Gen Z tends to prioritise health-conscious choices and premium experiences. They are more inclined to choose low-alcohol or alcohol-free alternatives, reflecting a growing trend towards conscious consumption. Millennials are commonly seen exploring various alcoholic beverages such as artisanal spirits, craft beer, and specialty wines, with an adventurous and experiential approach to drinking. Gen X, meanwhile, has a more traditional and practical attitude toward drinking, favouring established brands and classic cocktails, and prioritising familiarity and reliability over novelty.”
The rise of alcohol-based events
In spite of this shift, India has seen a surge in alcohol-based festivals over the last couple of years. The Gin Explorers Festival, India Cocktail Week, The Vault Festival—there’s something for every kind of drinker across cities. “We used to have a handful of serious cocktail bars in the country; bartenders did not get the credit they deserved; people drank a lot but did not care too much for the craft in the drink or spirit—all this has changed today. Indians travelling abroad now check lists of the best restaurants, bars and distillery tours, and want the same back home,” says Sharan Behl, co-founder, India Cocktail Week.
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In spite of this shift, India has seen a surge in alcohol-based festivals over the last couple of years including The Gin Explorers Festival, India Cocktail Week, The Vault Festival. Image: Instagram.com/ginexplorersclub
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Millennials in India are over-index significantly on various categories of drinks, indicating a heightened interest in diverse beverage experiences. Image: Instagram.com/indiacocktailweek
“These events cater primarily to urban millennials and Gen Z in India, aligning with demographic trends that we have been witnessing,” shares Vinayak Singh, co-founder, The Dram Club, an experiential-led spirit discovery platform. “They offer immersive experiences and social interaction. Millennials in India are over-index significantly on various categories of drinks, indicating a heightened interest in diverse beverage experiences. Also, the inclusivity and experiential nature of these festivals make them appealing to a diverse demographic, fostering community-building and brand loyalty.”
“INDIANS TRAVELLING ABROAD NOW CHECK LISTS OF THE BEST RESTAURANTS, BARS AND DISTILLERY TOURS, AND WANT THE SAME BACK HOME”
Sharan Behl
According to Batra, such festivals were a niche concept until a few years ago. “Having run Gin Explorers Club for five years now, I see that trend changing significantly,” she says. “We used to cater to a 30-plus-year-old mature audience when we first started. Today, we see it has penetrated to a much larger mass audience.” The Indian consumer is open to trying different spirits, as opposed to simply choosing what they’ve seen their parents sip on over the years. This keenness and growing purchasing power have driven the success of drinking festivals. “We first focused on those of the legal drinking age to 35-year-old consumers,” says Behl, about India Cocktail Week. “Over time, we have seen the audience expand. For instance, in Bengaluru this year we had more than 40 people from a serious whiskey club attend the festival, with most in their 50s who wanted to try whiskey cocktails. The same festival attracted young groups of friends who were crowding the tequila stalls. Due to the variety of spirits at various price points, selection of food and varied music programming, such festivals are a good differentiated outing for any age group.”
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Recently, homegrown agave brand Pistola secured an investment of Rs. 5.65 crores by Diageo India. Image: Instagram.com/pistola.agave
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Millennials are commonly seen exploring artisanal spirits, craft beer, and specialty wines, with an adventurous and experiential approach to drinking. Image: Instagram.com/sula_vineyards
Multi-brand events and festivals give alcohol brands an opportunity to meet new customers and build a buzz around their storytelling.“These interactive events are excellent platforms for brands to engage directly with consumers, build relationships, and share knowledge about production processes, ingredients, artistry, and tasting techniques. This helps foster a culture of appreciation and advocacy among consumers, encouraging them to drink better and consistently seek out higher quality drinking experiences,” says Damodaran. Apart from new customer acquisition, experiential events also allow brands to connect in person with existing consumers. “Brands aim to attract new consumers by leveraging the festival atmosphere to create memorable experiences and encourage trial of their products which may, in turn, recruit them as brand loyalists.
Is Gen Z in India pro-drug consumption over a tequila shot?
According to a 2022 Bloomberg editorial, globally, Gen Z prefers substances like marijuana or psychedelic mushrooms as opposed to alcohol. A study by New Frontier Data in the same editorial suggests that “of people aged 18 to 24, 69 per cent prefer marijuana to alcohol”. Simran Rawal (name changed upon request), a 26-year-old media professional and part of Gen Z, attributes the “wellness wave” as the reason for reduced alcohol consumption amongst her generation while acknowledging the increased substance abuse. “We understand the repercussions of drinking a lot more than the older generation did. Additionally, alcohol is expensive and Gen Z being Gen Z, they’d like to find faster ways to feel intoxicated. Yes, we do prefer other recreational substances as opposed to alcohol since the high is much better, and there aren’t ‘hangovers’ as such. I prefer being at a music gig and enjoying substances because they elevate the atmosphere for me—the music, the lights, the entire experience.”
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A study by New Frontier Data in the suggests that “of people aged 18 to 24, 69 per cent prefer marijuana to alcohol”. Image: Instagram.com/strangersandsons
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“Gen Z's reduced alcohol consumption can be attributed to factors including heightened health consciousness and a focus on well-being,” says Pawan Shahri. Image: Instagram.com/svamidrinks
While marijuana isn’t legal in India yet, it can be procured and is often consumed behind closed doors. “Gen Z's reduced alcohol consumption when compared to older generations can be attributed to factors including heightened health consciousness and a focus on holistic well-being, driven by access to information and social media,” believes Shahri. “Concerns about mental health, peer pressure, and changing social dynamics that prioritise alternative forms of recreation and socialisation also play a role in shaping their attitudes towards alcohol.”
Bhasin notes that global statistics may still differ from the trends seen in local markets. “While we hear a lot that Gen Z drinks less, I am not really sure how true that is for India. For example, the rise of seltzers in the United States versus India—it's not a comparison at all. In the Indian context, I don't think it’s about the generation but the fact that we now have the access and availability of multiple brands and categories. Gen X might have strong brand preferences for whiskies but other than that, I do think people are open to trying new [alcoholic] products.” Bhasin’s Svami was amongst the first brands in the country to launch a range of zero proof drinks such as a rum and cola and gin and tonic. “The idea behind the zero proof range is that a non-alcoholic drink should be complex and tasty and not just a cola and packaged juice. Our audience ranges from teetotallers to alcohol drinkers who may not like to have more than a couple of drinks.”
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According to a 2022 Bloomberg editorial, globally, Gen Z prefers substances like marijuana or psychedelic mushrooms as opposed to alcohol. Image: Instagram.com/nonimouse
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Aneesh Bhasin’s Svami was amongst the first brands in the country to launch a range of zero proof drinks such as a rum and cola and gin and tonic. Image: Instagram.com/svamidrinks
Shahri echoes Bhasin’s views, stating, “Alongside traditional patrons, there's a growing segment of younger consumers seeking unique experiences, innovative drinks, and aesthetically pleasing environments for socialising and networking. There's also a growing emphasis on sustainability, authenticity, and ethical sourcing, reflecting broader societal trends and consumer demands for transparency and accountability.”
“GEN Z, MILLENNIALS, AND GEN X HAVE DISTINCT DRINKING BEHAVIOURS THAT ARE INFLUENCED BY THEIR GENERATIONAL CHARACTERISTICS, SOCIETAL TRENDS, AND CULTURAL NORMS”
Rakshay Dhariwal
According to Adele de Fontbrune, co-founder, CIRQA 1960, a dining room and speakeasy-style bar in Mumbai, it is Gen Z’s mindfulness that impacts their drinking habits. “Mental health as well as being physically fit is top of mind for Gen Z. Most do not engage in binge-drinking, or regular forms of drinking, which they associate with anxiety and a lack of productivity. [This is why there] has been a rise in mocktails and other alternative alcohol-free drinks, where taste and a holistic approach to socialising is valued. When they do drink, the younger audience would rather occasionally have good-quality spirits or crafted cocktails while supporting newer brands rather than frequently consume alcohol at lower price points.”
What does this mean for the alcohol industry?
As consumption evolves across generations, it’s the industry’s ability to evolve alongside that will keep it moving. “Foresight studies show that consumers are gravitating towards five key ‘possible futures’: Brands and products for a better world, for a balanced life, for digital nomads, for communities, and for experiences of indulgence and pleasure,” says Damodaran. Alcohol-based businesses that are able to cater to these will find a sweet spot with what the next generation wants and needs.
“Personalisation and customisation will also play a significant role, as younger generations seek tailored beverage experiences that reflect their tastes and preferences. Businesses need to embrace innovation and adapt to changing trends while recognising the continuing popularity and stability of the alcohol industry as a cornerstone of global culture and commerce,” says Dhariwal.
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