Gen Z’s hanging out at chill parties over raves, but this alcohol exec says there’s still an in for the booze business

• A top exec from Jim Beam’s parent, Suntory, said younger drinkers have unique drinking styles.
• They’re not too fussed about clubs, they love to drink at home, and they’re drinking low-alcohol drinks.
• Jing Mertoglu from Suntory said the new consumption patterns are opportunities, not challenges.

For Gen Z, the party has moved out of the nightclub and into picnics in the park and house parties — and they are drinking less.

An August Gallup survey found that the number of 18 to 34-year-olds in the US — which includes young millennials — who reported that they drink alcohol dropped by 9% from 2023 to 2025.

And Americans age 25 to 34 spent about 11% less on alcohol in 2023 than the same age group did in 2003, when adjusted for inflation, per Federal Reserve Economic Data.

But a top executive at Suntory, the Japanese beverage company that owns the American whiskey giants Jim Beam and Maker’s Mark, said there is still opportunity for booze businesses. She said Gen Zers still want to drink, but they consume different types of drinks in different spaces.

Jing Mertoglu, the global vice president of insights and analytics at Suntory, told Business Insider that Gen Zers’ drinking habits deviate from those of their older siblings and parents in several ways.

The fun is no longer limited to the nightclub

Fun has taken on a new meaning for this demographic, Mertoglu said.

Speaking of older cohorts like millennials, she said, “When you go party, you only hit the karaoke bar, you only hit the disco.”

While Gen Zers enjoy these “very high energy” spaces, they equally appreciate mid-to-low energy spaces.

“I think they’ve now broadened their options for what socialization and having fun are looking like,” Mertoglu said. “For some, picnics in the park are cool as well, while for others, gathering and camping mean having fun.”

More niche activities, like micro-clubs in China, drinking with friends or colleagues at campsites in South Korea, and themed parties in Singapore, are gaining popularity, she said.

For instance, a daytime matcha rave in Singapore in August attracted a crowd of 400 people.

Mertoglu said Gen Zers also prefer to stay in with friends more.

“I call it the home premise, where people, after COVID, have begun to be more comfortable in partaking of drinks at home and enjoying drinks and socialization with their friends,” Mertoglu said.

“Not only is it economical, there are certain occasions that demand that, but it’s also more intimate and comfortable,” she said. “I don’t have to drive to get to the venue, and there’s a level of comfort around getting friends together.”

And experiences matter to Gen Zers. She said, “They still go to concerts, they’d still go to Lollapalooza, they’d still spend on BTS.”

Work trends have also influenced how people consume alcohol, she said.

Previously, after-work drinks on Fridays were a big cultural phenomenon, and older people were more used to consuming alcohol after work “as a way to release,” she said. That’s changed.

“Usually we were going out on Friday nights, but sometimes Fridays are a work-from-home day, so even that has shifted,” she said.

Booze businesses, don’t despair

Even in these low-energy spaces, like picnics or house parties, people continue to consume alcohol, she said.

“So we’re not so dependent on the high-energy, high-partying moments,” she said. “There are still opportunities in those lower energy moments where alcohol continues to play a role.”

To address this customer trend, Suntory has introduced more ready-to-drink cocktails, which are easier to consume outdoors as they don’t need to be mixed.

The company said in an August earnings report that its Minus 196 sugar‐free ready-to-drink cocktails saw double-digit sales growth in Japan in the first half of 2025 compared to the year before.

The company added that the US was its biggest ready-to-drink market, where it is expanding Minus 196’s distribution and launching new flavors.

Other brands have seen big gains in low- and no-alcohol drinks, too.

Anheuser-Busch InBev, the Belgian owner of Budweiser and Corona, reported a 33% year-on-year increase in its non-alcoholic beer portfolio in the second quarter of this year. The company said this was led by the growth of Corona Cero, a zero-alcohol beer with added Vitamin D.

Mertoglu said Gen Zers are more keen on health and wellness trends, which translates to drinking.

“I think they’re trying to be as healthy as they can in general in all aspects of their lives,” she said.

Mertoglu said they’re not just drinking mocktails and fruit juices — they want variety.

“Lighter drinks, more refreshing drinks, and slightly lower alcohol,” she said.

Read the original article on Business Insider

The post Gen Z’s hanging out at chill parties over raves, but this alcohol exec says there’s still an in for the booze business appeared first on Business Insider.