Scene
Behaviors characteristic of the Gen Z population have led the global alcohol industry to its largest decline in history, losing 830 billion dollars in market value between 2021 and 2025.
Gen Z brings a completely new approach to nightlife, with a stronger focus on mental health awareness, wellness culture, and a different perception of social experiences.
As Bloomberg noted, the challenge for the alcoholic beverage industry lies in changing consumer behavior across all generations. In August, a Gallup survey found that US alcohol consumption had dropped to its lowest point since records began in 1939. Health warnings from organizations such as the World Health Organization and the US Surgeon General have further dampened demand among Generation X.
Beyond Gen Z, alcohol is becoming less popular among millennials as well, and it is increasingly associated with negative connotations both on social media and in public spaces.
This trend is highly significant for the nightlife and hospitality industry, as club and venue owners can no longer rely on bar revenue and will need to find new ways to cover costs, while ticket prices cannot increase indefinitely.
Changes in alcoholic beverage consumption habits are just one of the new challenges the clubbing industry is increasingly facing. More frequent club closures and the precarious survival of existing venues are the current reality, and the concept of the night-time economy is an increasingly prominent topic.
