Summary
A Bacardi Cocktail Trends Report suggests that Melenials are drinking “differently, not less." Is this true? Other headlines suggest that alcohol use is plummeting. We explore the claims and see if there isn't a less sensational way to make senes of the data.
At a headline level, alcohol use is falling. In the U.S., the share of adults who say they drink at all has dropped to about 54%, the lowest level Gallup has recorded in nearly 90 years. ³ That’s a meaningful shift, not a blip.
“Gen Z isn’t drinking less, they’re simply drinking earlier, lighter, and with more intention.” Claims the recently released Bacardi Cocktail Trends Report.
Which trend is true?
Are People Actually Drinking Less?
At a national level, alcohol consumption is trending downward, though not sharply. U.S. self-reported drinking has fallen to its lowest point in decades, with roughly half of adults now identifying as drinkers¹. Global volume trends point in the same direction, with beverage-alcohol consumption in major markets declining around 1% last year².
Generationally, the sharpest decline is concentrated among Gen Z and younger Millennials. Long-running survey data shows these cohorts drinking less frequently and in smaller amounts than previous generations at the same age³. Gen X remains comparatively steady.
So while consumption is indeed falling, it reflects gradual behavioral change rather than a rapid cultural reversal.
What the Bacardi Trends Report Gets Right (and Where It Reaches Too Far)
The Bacardi Cocktail Trends Report highlighted several relevant forces: earlier drinking occasions, lower-ABV preferences, lighter flavor profiles, and a heightened emphasis on experience⁴. These themes are reshaping menus and beverage strategies across the industry.
An Inc.article presents these findings as evidence that Gen Z is drinking “differently, not less.” The former is widely supported—Gen Z favors curated, intentional, lower-intensity cocktail moments. The latter is not. Independent survey data clearly documents a generational decline in alcohol participation. The more accurate framing is that lower volume and higher intentionality are rising together.
Which Categories Are Rising (and Falling)?
Broad category shifts across beverage alcohol reinforce this pattern:
- Beer continues a long-term decline, while non-alcoholic beer is surging at high growth rates⁵. (Beer Under Pressure)
- Wine remains soft, particularly among under-40 consumers who view it as less contemporary than cocktails or RTDs. (Wine At A Crossroads)
- Spirits growth has moderated after years of premiumization, but agave spirits continue to outperform⁶.
- Spirit-based RTDs remain the fastest-growing category, outpacing malt-based seltzers⁷.
- No- and low-alcohol alternatives are expanding rapidly, with mocktails increasingly receiving menu parity and pricing alignment with traditional cocktails⁸.
Within cocktail programs, spritzes, highballs, tequila and mezcal drinks, coffee-inspired cocktails, and elevated zero-proof serves consistently dominate consumer interest. These preferences reflect adaptation—not abandonment—of cocktail culture.
What Operators and Beverage Programs Can Take Away
Even with consumption edging downward, cocktails remain central to on-premise experience. The opportunity emerges in aligning with how guests now choose to drink:
- Fewer drinks, higher expectations.With more selective consumption, premiumization remains intact as guests prioritize flavor, craft, and perceived value.
- Parallel alcoholic and non-alcoholic design.Younger consumers increasingly alternate between ABV levels during a single occasion, making mirrored cocktail/mocktail offerings more effective.
- Growth in earlier drinking moments.Brunch, daytime gatherings, and post-work occasions continue to expand, rewarding lighter, spritz-like formats—and zero-proof variants that still feel crafted.
- Greater emphasis on wellness and transparency.ABV, sourcing, sugar content, and ingredient narratives have become meaningful decision factors, especially for younger adults.
The deeper takeaway from recent data is not the decline of cocktails but the decline of unintentional drinking. Programs that promote flavor, flexibility, and thoughtful moderation are best positioned for the next phase of consumer behavior.
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