Why 'Sober Gen Z' Is Secretly Alcohol Industry's Best Customer
Despite a cultural shift toward 'mindful' drinking and lower alcohol consumption among Gen Z, liquor companies in India are seeing record profits. Analysts suggest that while volume growth is steady, the premiumization of products is driving significant financial gains.
Why it matters
The trend illustrates a shift in consumer behavior where younger generations prioritize quality over quantity, benefiting high-end alcohol brands.
Gen Z is drinking less alcohol than any generation before it. That's not a hunch. It's data, from the US to the UK to India. And yet, liquor stocks are on a tear. Radico Khaitan. United Spirits. United Breweries. All quietly minting money.So what's actually going on? The Sober GenerationGeorge F Koob of the National Institute on Alcohol Abuse and Alcoholism says younger generations increasingly see alcohol as risky for their health and are more likely to go through dry spells. Others point to a quieter social life. Time spent hanging out with friends in person fell from 30 hours a month in 2003 to just 10 hours a month in 2020.India isn't immune to this either.
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