The U.S. alcohol industry is facing a significant shift as Generation Z redefines its relationship with drinking, prioritizing quality over quantity and exploring "sober-curious" lifestyles. This trend is contributing to a decrease in overall alcohol consumption, with a recent Gallup poll indicating that the percentage of U.S. adults who consume alcohol has fallen to its lowest point in 90 years.
The Gallup poll found that only 54% of U.S. adults reported drinking alcohol in 2025, a decline from 58% in 2024 and a notable drop from the consistent figures of at least 60% recorded between 1997 and 2023. This evolving consumer behavior presents a new challenge for the alcohol industry, which must now focus on convincing consumers, particularly younger demographics, that their products offer value worth the price.
Ryan Close, CEO and founder of Bartesian, an automated at-home cocktail machine company, observes that consumers are increasingly seeking premium experiences. "I'm not gonna argue with the data, you know, they probably are drinking less alcohol. I think they're drinking less, but with the expectation that 'I want better,'" Close told Fox News Digital.
Bartesian's machine allows users to create bar-style cocktails at home by using flavor capsules and adding their own spirits. Close noted that before launching Bartesian, he observed a gap in the market where people were consuming wine and beer at home but opting for cocktails when dining out, often finding the process of making cocktails at home too complex due to the need for numerous ingredients. His company was founded on the principle of providing high-quality, real-ingredient cocktails for home consumption. "We only use real ingredients so we're not putting anything artificial, no artificial colors or flavors in the cocktails, so, you're just getting that true quality freshness," he stated.
Industry research supports Close's observations. A January report by NielsenIQ (NIQ) identified a similar trend, finding that 67% of spirits drinkers and 52% of average drinkers are willing to pay more for higher quality beverages. While NIQ's report focused on on-premises consumption, the underlying sentiment appears to extend to at-home drinking habits.
Close believes that the motivation behind drinking is also changing. He suggests that Gen Z consumers are not interested in "drinking for the sake of drinking" but are instead looking for shared experiences. The Bartesian machine caters to this by allowing customization of flavors, spirits, and alcohol strength, facilitating a more intentional approach to consumption. "I just think the younger generation is more intentional and it's not about, 'Hey, I don't wanna drink at all,' it's, 'I wanna drink better, less often, and more quality,'" Close explained.
The COVID-19 pandemic influenced this trend, as many Gen Z individuals turned 21 during periods of restricted access to bars and restaurants. This may have accelerated the perception of home as an extension of hospitality venues, boosting demand for premium at-home experiences. Additionally, rising cocktail prices in establishments have prompted consumers to reconsider their spending, making the cost-effectiveness of at-home cocktail preparation, estimated by Close to be around $3 to $4 per drink compared to potentially $24 or more in a bar, a significant factor.
This shift is not necessarily about replacing bars and restaurants entirely but about meeting a growing consumer demand for deliberate choices regarding what, where, and why they drink, with an emphasis on the value of the overall experience.