How Gen Z's thirst for innovation shapes cocktail culture

Gen Z consumers report higher spending on pubs, clubs, or bars.

The cocktail industry is experiencing a surge in popularity as Generation Z enters the alcohol market, as per GlobalData report.

However, Gen Z's demand for innovation and quality is challenging the traditional cocktail culture.

“Cocktail culture is a historic trend that has undergone several movements over its more than 200 years history,” said Richard Parker, Principal Consumer Analyst at GlobalData.

“In 2024, it has been influenced by relatively recent developments – the craft alcohol craze, home-based indulgence and entertaining during the COVID-19 pandemic, increased RTD product diversity and sophistication, and the emergence of a more experiential, quality not quantity-focused Gen Z,” he explained.

Despite the perception that Gen Z is less interested in alcohol compared to previous generations, Gen Z consumers report higher spending on pubs, clubs, or bars compared to other generations. 

This suggests that Gen Z values quality and is willing to invest in premium experiences, supporting the trend towards "less but better" consumption.

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Parker warned that the cocktail industry risks stagnation if it remains focused on nostalgic themes.

“The old favorites of the cocktail market remain relevant to a large degree, but they are familiar and not exciting to younger generations looking for relevance to their preferences and need for experiential challenges,” he said.

“The risk is that a maturing Gen Z, with other interests and motivations, see mainstream cocktails and related bar concepts as anachronistic, especially those with a strong heritage basis,” Parker noted.