Page 30 - Food&Drink magazine Feb-Mar 2023

TRENDS 2023
Tapping into Gen Z
month, but 20.2 per cent stated they buy alcohol every couple of months – meaning Gen Zs are either steady imbibers or only occasional indulgers.
Regardless of how often they are purchasing alcoholic beverages, one thing is certain – Gen Zs are budget-conscious in their purchases.
The average Gen Z will spend just over $46 a month on alcohol, with most spending on the lower end between $1-20.
Gender also played a role in how much was allocated to alcohol purchases each month. Males indicated they spent an average of almost $69 per month versus females at just under
$35 a month.
As a debt-averse and
financially curious generation, Gen Z is mindful about how frequently they make alcohol purchases, how much they drink, what brands they are buying, and also where they are going to purchase their alcoholic beverages.
Surprisingly, this digitally native group prefers to make their alcohol purchases offline. In fact, delivery apps and online retailers were the least preferred method of purchase, whereas grocery and liquor stores were the most common places Gen Zs shopped for alcohol.
Since the generation is financially mindful and they don’t have the disposable
Covid’s impact on Generation Z, shifted it from a generation of non-drinkers to one with very specific alcohol habits. Knit CEO and founder, Aneesh Dhawan, writes about what it takes to appeal to this market.
STUCK at home and anxiety in the community at an all-time high, it’s no that surprise some people increased their alcohol consumption during the pandemic. Even Generation Z (Gen Z) was not immune to
the effects.
Prior to the pandemic Gen Zs
were on track to be a generation of non-drinkers.
Nielsen IQ research found that prior to 2020, penetration by the beer market had decreased and Gen Z’s consumption had dropped
20 per cent compared to millennials. And 64 per cent said they expected to reduce their consumption further.
Covid changed that, with the associated struggles and uncertainties leading to a spike in alcohol purchases and consumption. Nielsen reported a 54 per cent increase in national alcoholic beverage consumption at the start of 2020, with a 262 per cent year-over-year increase in online sales alone.
Beverage report, Gen Z’s consumption is up 35 per cent since the start of 2020.
For alcohol brands to appeal to Gen Z consumers in 2023 and beyond, they need to drill down into how the pandemic changed
ABOVE: Gen Z presents the need for a nuanced approach by brands.
their drinking and purchasing habits and understand what influences their decisions around alcohol.
A BUDGET IN MIND
There is no one pattern or way of thinking that Gen Zs fall into when it comes to their relationship with alcohol. The Knit report found that 36.6 per cent of respondents claimed to purchase alcohol several times a
income to experiment with unfamiliar brands, the majority of Gen Zs prefer to shop based on friends’ recommendations, social proof, and taste rather than fancy packaging or paid influencers.
MODERATION GENERATION
Unlike their older counterparts, Gen Z approaches alcohol with a moderation mindset.
According to Knit’s research,
According to our Alcohol and
30 | Food&Drink business | February/March 2023 | www.foodanddrinkbusiness.com.au
“ As a debt-averse and financially curious generation, Gen Z is mindful about how frequently they make alcohol purchases, how much they drink, what brands they are buying, and also where they are going to purchase their alcoholic beverages.”