The global alcohol industry has suffered huge losses due to Gen Z’s low drinking. After a loss of Rs 75 lakh crore in the last 4 years, this generation is drinking 20% less than the Millennials. Due to this trend, companies are worried about their future.
New Delhi: Gen Z, i.e. today’s youth, has given liquor companies sleepless nights. Due to their increasing distance from liquor, the global liquor industry has suffered a major blow of about Rs 75 lakh crore in the last 4 years. According to a Bloomberg report, shares of the 50 largest liquor companies have declined by 46% compared to 2021. Statistics show that about 21.5% of Gen Z youth do not even touch alcohol. At the same time, 39% people drink only occasionally. And those who drink are only for the sake of name, not for the sake of intoxication. Compared to the Millennials generation, Gen Z is drinking 20% less alcohol. There are big reasons for this – like increasing awareness about the harm of alcohol, increasing cost of alcohol, restrictions at some places and increasing trend of drinks other than alcohol.
Why are companies worried?
If middle-aged people drank less then perhaps liquor companies would not have been so worried. But here only Gen Z, who will become the biggest consumers of the future, are giving up alcohol. Companies fear that if this trend extends to the next generation, i.e. Gen Alpha, then liquor companies around the world may have to suffer huge losses.