Indian Gen-Zs are drinking responsibly, but they are not necessarily drinking less

Are the Gen-Zs actually drinking lesser alcoholic beverages than the millennials or the Gen-X? According to global trends the Gen-Zs are indeed drinking more responsibly than their predecessors. Increasing awareness about staying healthy and fit is a key driver, but inflation is also playing a big part. Increasing inflation and job uncertainties across the world has also made led youngsters to spend prudently. This explains why all the major alcoholic beverage companies have witnessed a prolonged slowdown.

Indian Gen-Zs like their global peers are also drinking responsibly, but they are not slowing down. “In India, very clearly, what we are seeing is that the Gen-Z is drinking very differently than what the other generations were drinking when they were young. They are drinking less, but they're drinking premium. They want to drink the best quality stuff,” explained Praveen Someshwar, MD & CEO, Diageo India, in a recent interview with Fortune India.

“They are not drinking regularly, they may be drinking a couple of days, but on those couple of days, they tend to binge. Therefore, what we are noticing is that the consumption quantity is not coming down in India. They are also going more premium.” This trend, according to Someshwar, has led to both value as well as volume growth. Though value growth is significantly higher, volume growth is also not bad.  

“In good old days people were happy to only try what they could afford. Today, if I can afford a McDowells No. 1 Whisky, I am looking for a Royal Challenge, and if I can afford Royal Challenge, I also want to try a Signature or a Black & White. The consumers are laddering pretty healthy.”

The youngsters of yesteryear drank mass brands, they drank regularly and they drank till they dropped. The Gen-Zs are zebra-striping. Not only are they drinking premium, they are also alternating with cocktails or zero alcohol beverages. They could consume a single malt, switch to a cocktail or a zero-alcohol beverage. “At a leadership conference in Edinburgh, I started my evening with a zero-alcohol Guinness. I was tired after a long flight and didn’t feel like having a whisky. But later in the evening I did feel like a whisky and I switched to Lagavulin 16. That's what the youth of today have taught me. I see them zebra-stripe very nicely. That's such a lovely way to consume alcohol,” says Someshwar.

The Gen-Z alcoholic consumption patterns have actually pushed alcoholic beverage companies across the board to not just focus on premiumisation but also broaden their portfolio of beverages - from high-end craft offerings to ready-to-drink cocktails and zero-alcohol beverages.