Pour decisions

Credit: Unsplash / Bucography

The alcohol industry is facing some significant challenges, which WARC discusses in its latest industry snapshot.  People just aren’t drinking like they used to, at least in the US, and especially Gen Z. 

There are probably multiple barriers.  For health reasons, many consumers are switching to lower-alcohol or alcohol-free options; marijuana legalization has shifted the way some people get their highs; and there is some thinking that weight-loss drugs like Ozempic may curb users’ appetites for alcohol.

Plus, whether it is chicken or egg, people aren’t socializing like they were prior to COVID and drinking tends to be a social activity. 

(A hot take: Less drinking may be a net negative for our society.  It’s probably more psychologically beneficial to have a beer or two at the bar once in a while, in the company of other humans, versus going home by yourself every night and endlessly staring at your screens with no social interaction.)

So, the industry is in a spot where 20 percent of adults account for 90 percent of alcohol sales in the US. There isn’t much room to grow with those heavy consumers, so the industry now must appeal to the occasional drinkers.

One of the things WARC suggests is reframing the role of alcohol – it doesn’t have to be about partying hard. It can be about complementing an already pleasant social experience. WARC also recommends brands seek new occasions where alcohol can play a role (e.g. Gen Z game nights?)  And, of course, innovation is on the table – partnerships with non-alcoholic beverage brands that lighter drinkers may find intriguing.