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Gen Z Is Drinking Less and One Study Says It’s Just Because They’re Broke

by thinktank
May 11, 2025
Reading Time: 1 min read
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Gen Z Is Drinking Less and One Study Says It’s Just Because They’re Broke

Gen Z Is Drinking Less and One Study Says It’s Just Because They’re Broke

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It’s been shown that Gen-Z is drinking less alcohol, but one study believes it’s simply because they’re broke.

Dutch banking company Rabobank argues the answer is simpler than health trends or social media: Gen Z just doesn’t have the money.

“(Those Gen Zers) have yet to get a college degree, are working an entry-level job or not working at all, and therefore don’t have any money to spend on alcohol,” the report said. It also notes this was true for millennials, Gen X, and baby boomers in their 20s.

Experts have pointed to health consciousness and social media, in addition to limited disposable income, as key reasons for Gen Z’s aversion to alcohol. George Koob, director of the National Institute on Alcohol Abuse and Alcoholism, also noted to Time, “It is becoming clear that, for whatever reasons, today’s younger generations are just less interested in alcohol and are more likely than older generations to see it as risky for their health and to participate in periods of abstinence like Dry January.”

A 2023 Gallup poll shows the share of U.S. adults under 35 who drink dropped from 72% in 2001–2003 to 62% in 2021–2023. Technology, marijuana legalization, and shifting social norms also play a role.

“Alcohol is a ‘social drug,’” Koob said, and socializing has moved online; time with friends in person dropped from 30 hours per month in 2003 to 10 in 2020.

“This is an ideal outcome for the alcohol industry, which can celebrate the declines in underage drinking and binge drinking while still benefiting when Gen Zers reach their more mature and responsible prime spending years,” the report stated.

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