CURATED READS FOR GEN Z—AND THEIR Z-CURIOUS COLLEAGUES

first up

Welcome back! This week, we’re talking about the impact of Gen Z’s alcohol preferences.

For ages, people have bemoaned the vices and preferences of the next generation, insisting their habits would usher in the end of civilized society or some other moral panic.
 
When it comes to Gen Z’s drinking habits, the script has flipped. In fact, some Gen Xers and boomers are downright confused about why young adults are sober. (Fact check: it’s not just Gen Zers who are experimenting with reducing their alcohol consumption.)

Those who are trying to reduce the number of hard drinks they consume in any given week may see the health data on alcohol consumption as a chief motivator. Drinking has been linked to accelerated DNA aging, cognitive decline, and cardiovascular disease, according to data that contributed to recent research from McKinsey Health Institute coleader Lars Hartenstein and his coauthor. The World Health Organization, meanwhile, published a statement in January in which it noted that “when it comes to alcohol consumption, there is no safe amount that does not affect health.” 

Among Gen Z, health concerns are just one reason why interest in drinking alcohol has diminished in recent years. Experts point to changing tastes, a lack of effective marketing, and price as factors in the shift, too. Consider the wine industry: in the US, wine has grown in popularity only among the over-60 demographic. Gen Zers have shown less interest in the bevvy, compared with other age groups, especially when they are presented with so many other choices.

Gen Z’s tastes have helped catalyze the booming nonalcoholic and low-alcohol beverage industry, which some CEOs are keen to get in on. Although the nonalcoholic-beverage segment makes up a fraction of the larger beverage market, sales of nonalcoholic beverages in the US surpassed $400 million by some measures, more than doubling since 2020. Two big “Fs” have become popular in this segment—functional drinks, which claim to offer health benefits, and fermented drinks, such as kombucha. 

There’s also a chance for employers to reconsider their approach to alcohol in the workplace. Gen Z employees may be leading the charge away from alcohol consumption at office happy hour, but employers and managers could make happy hours more inclusive for all employees. Here’s how McKinsey partner Bryan Hancock put it on a recent episode of the McKinsey Talks Talent podcast:
 
“Recently, I went to a happy hour in Atlanta at a great tapas place, and I don’t think anybody even had anything to drink. . . . We still considered it a happy hour, even though we weren’t drinking. Messaging is critical. The ritual isn’t to drink; the ritual is to be together and say thanks. As a leader, you’ve got to be thoughtful about how a ritual advances togetherness.” 

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— Edited by Alexandra Mondalek, editor, New York