
India's Gen Z is drinking less, but drinking better
New Delhi: Young Indians are rethinking how they drink. A rising number of Gen Z consumers are cutting back on alcohol or trading quantity for quality, in line with a global shift towards health and wellness.
Data indicates that Gen Z drinkers in India are more inclined to reduce their alcohol consumption compared to millennials, who continue to be the primary consumers of alcohol in India.
'There is a clear decline in alcobev consumption globally, and India is not immune to this trend," said Rajeev Samant, founder and CEO of Sula Vineyards. 'Even when we consider the demographic dividend, we still see people on Instagram advocating for a more alcohol-free lifestyle. Things have definitely changed. Alcohol consumption may not be evolving in the way we once expected."
Traditionally, the under-30 age group has never been a major wine-consuming segment, he said. 'That said, this cohort in India today likely consumes more wine, relative to previous generations."
According to data from IWSR, a global tracker of the alcoholic beverage industry, the attitude of Gen Z (those over the legal drinking age) towards alcohol in India differs significantly from millennials.
'In our latest Bevtrac report on consumer sentiment in India—Gen Z drinkers who choose to drink less outnumber those choosing to drink more by 5%," said Jason Holway, IWSR senior consultant.
In a recent survey of full-strength drinkers, 25% of Gen Z drinkers have never chosen to abstain from alcohol for lifestyle reasons, while 41% have chosen to be away from alcohol for one month or more for lifestyle reasons. "In India, boomers, Gen X, and Gen Z are more likely to choose to drink less rather than drink more (millennials are the exception and continue to drive alcohol consumption)," said Holway.
As per IWSR, millennials are the generation in India least likely to choose moderation. Millennials who choose to drink more outnumber those choosing to drink less by 8%. Around 28% of millennials have never chosen to abstain from alcohol for lifestyle reasons, while 36% have chosen to abstain from alcohol for a month or more for lifestyle reasons.
While older consumers continue with established drinking patterns, younger legal-age drinkers are actively reshaping norms, he said.
This doesn't mean Gen Z is abstaining entirely. With increased exposure to bars, pubs, and live events, younger consumers still drink—but with more restraint and a conscious approach.
Take New Delhi-based Kanika Dua, for instance. The 28-year-old has cut down from three to four drinks a night to a maximum of two or three. 'It shows up the next day, and with work starting early, I cannot afford a mid-week binge," she said.
The era of guzzling is over, said Alok Gupta, managing director at liquor company Allied Blenders and Distillers (ABD). 'There is a need to consume better—so instead of three large drinks consumers may opt for two nice cocktails. Consumers want to prioritise morning workouts or early morning work commitments," he said.
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Booze break
Gupta said growing awareness around health and fitness is influencing beverage choices. "The lens through which they consume F&B (food and beverages) has changed," he explained.
"The fitness piece brings focus on better consumption, considering factors like calorie count and protein-carb balance, which extends to both foods and beverages. The concern isn't just about drinking less, but also drinking better, leading to premiumization," he added.
Consumers are drinking better quality gin or tequila and even trading up to better whiskey or scotch.
There are early signs of the "sober curious" trend among Gen Z, though its impact in India is still marginal compared to countries like the US, Vikram Achanta, founder of Tulleeho, a Delhi-based drinks consultancy said.
'There's talk of younger consumers drinking less, but it's not yet meaningful from a volume perspective. India is insulated from some of the shifts we're seeing in the West," he said.
Still, they're more conscious of alcohol content. "A Spritz (with 8-10% alcohol content) might appeal more than a Martini (with 20-35% alcohol content)," he said.
Mint earlier reported that a growing number of urban Indians were embracing sobriety or moderation—not necessarily due to heavy drinking but because of health concerns tied to their lifestyles.
This rising "sober curious" sentiment is fuelling demand for non- and low-alcohol alternatives. This gave rise to a number of new-age startups, brands like Catwalk Botanics, Sober, Copenhagen Sparkling Tea and others that are focused on either creating or importing products from different markets. Though the category remains under 1% of the broader alcobev market, it is slowly gaining traction in metro cities. Global giants like Heineken and Beefeater have also entered this space.
Despite growing moderation trends, alcohol consumption in India is growing. The country, with its large population, remains a large market for alcoholic beverages. The compound annual growth rate (CAGR) of total alcohol beverage industry in India from 2018 to 2023 was over 2%.
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According to Gupta of ABD, more legal drinkers are entering the market annually, and evolving social norms have led to greater acceptance of social drinking and increased alcohol consumption among women.
Volume growth may slow, but consumer numbers are rising, and they're drinking better, Gupta said.
India had 18-19 million first-time voters in the 2024 general election and an estimated 65 million Indians will be of legal drinking age (depending on the region) over the next five years.
For brands, the message is clear: engaging with this evolving consumer base is critical. Samant of Sula said, "At festivals like SulaFest, 90% of the audience is Gen Z. So, we're doing our part by introducing more people to at least entry-level wines."
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