Gen Z Drinks and Diageo Has the Data to Prove It

​Headline after headline asserts that gen z is the teetotal generation, eschewing alcohol and going out in favour of mindfulness and the gym. The truth is more complex than that, as discussed by Giles Hedger, global consumer planning director, and Mark Sandys, chief innovation officer, at Diageo’s recent Innovation Showcase.

To get to the bottom of who gen z is today and what they actually do and don’t like, Diageo turned to its team of 150 global consumer experts to analyse the cohort and their behaviour through primary research. The centrepiece of this is Diageo’s Consumer Choice Framework, the biggest consumer data programme run by the drinks giant. The 2025 programme covered around 80,000 consumers in 37 markets, running to 220 million data points.

The findings revealed a complex and nuanced portrait of a generation, going beyond crude statements to locate the truths and contradictions defining how, when, where, and why they drink.

Crucially, gen z does drink. While they do so less frequently compared to other cohorts, they’re not as abstinent from alcohol and partying as many might think. Gen z tends to centre socialising above all else, spending upwards of three hours at social events, and drinking is still seen as a necessary element of many gatherings.

When it comes to what they’re drinking, spirits – gin, tequila, and vodka in particular – tend to be most popular. This is expressed through the popularity of cocktails among gen z. They like to explore new flavours and ingredient combinations and enjoy the photogenic nature of cocktail presentation.

Moderation is an ongoing shift within the cohort, and 14% of all gen-z drinking occasions now involve some form of it. It’s not about rejecting alcohol altogether but balancing its consumption with wellness and a strong desire to socialise.

The luxury market is also getting younger, and this reflects another ongoing trend: gen z is happy to spend more, albeit less frequently, if they think the experience is going to be worth it.

In line with the findings, Diageo predicted five key trend areas that will shape how the company approaches marketing and innovation over the next 12 months.

When it comes to flavours, natural profiles will dominate, drawing inspiration from botanicals and tea’s increasing popularity. We’ll also be seeing retro flavours, under the moniker ‘newstalgia’. There’s a surge in the love for all things savoury, with a 246% growth in conversations around umami as consumers flock to salty and fermented tastes in their food and drink.

Tech and AI will continue to play a part in how consumers discover products and interact with brands. Diageo will soon launch a mixology tool, Rita, from Casamigos tequila to help consumers create drinks.

One thing Diageo is keenly aware of is the need to meet consumers in cultural third spaces if they want to exist meaningfully in those consumers' lives. As the data revealed, gen z places a high value on social experiences like concerts and festivals. To capitalise on this insight, Casamigos’ recent global creative campaign, ‘Anything Goes with My Casamigos’, will be supported through further cultural partnerships and spaces where it can come to life for consumers across Europe, Australia, Great Britain, and North and Central American markets.

The mood at the Innovation Showcase was sunny and no one seemed too concerned that gen z is going to abandon alcoholic beverages any time soon. In fact, Diageo is excited about gen z, according to Giles, and sees them as a vibrant force that’s breaking conventions.