Key Highlights
- Gen Z is drinking 20% less than Millennials.
- Dry January participation continues to rise, and employers are focusing on performance, wellbeing, and sustainable productivity.
- Moderation in alcohol consumption has become a structural feature of modern business strategy.
- Responsible consumption is redirecting economic value towards premium formats and new job creation.
The Shift to Moderation: A Business Perspective
In recent years, the younger generation—Gen Z—is drinking significantly less than their predecessors, Millennials. According to a recent study, Gen Z is downing 20% fewer alcoholic beverages compared to Millennials. This shift in consumption patterns is driven by a growing awareness of responsible drinking practices and an increasing focus on health and wellbeing among young adults.
The trend towards moderation extends beyond personal choice; it has become a strategic imperative for businesses across various sectors.
Employers are now prioritizing employee productivity, mental health, and overall wellness, making responsible consumption part of their broader business strategy. Companies are embracing lower-volume, higher-value formats to cater to the changing preferences of consumers while ensuring they meet regulatory standards and public expectations.
Moderation as an Economic Lever
The economic implications of this shift towards moderation cannot be overstated. While global alcohol volumes have softened in some markets, underlying consumer demand remains stable. The average number of drinks per adult per week has hovered around 10 to 12 for decades and is only modestly below its 2021 peak.
This suggests that consumers are not drastically reducing their consumption but rather opting for lower-volume options.
Industry analysis shows that even as volumes fall, global alcohol spending continues to rise. Emerging markets now contribute over 65 percent of leading brewers’ profits, and the no-alcohol category has become a market worth tens of billions of dollars, growing at double-digit rates. These dynamics illustrate a shift from volume to value: responsible consumption patterns are not reducing economic value; they’re redirecting it towards premium formats, adjacent categories, and new job creation.
The Virtuous Cycle of Moderation
Responsible drinking is not just about individual health but also has broader societal benefits. Countries with lower rates of harmful drinking experience lower healthcare burdens and fewer workdays lost to alcohol-related issues. These gains contribute to a virtuous cycle: healthier societies support stronger economies, which in turn enable healthier choices.
The moderation trend is reshaping the definition of economic growth.
While traditional measures focused on volume-led growth, modern business strategies are embracing value creation that supports societal well-being and investor interest. Governments play a key role through evidence-based regulation, while companies contribute by leading on responsible innovation. Consumers participate by making informed choices.
The Future of Moderation
As businesses and governments revisit what sustainable prosperity looks like in the decade ahead, moderation will be central to that conversation. It’s not a moral stance or a temporary trend; it’s a data-driven strategy for long-term resilience. For executives, embracing moderation early means leading the charge.
The article originally appeared on Fortune.com.
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