Nearly $830 billion has been erased from the market value of the world’s largest beer, wine, and spirits companies over the past four years, according to a Bloomberg tracking index. 

For an industry built on consistency, ritual, and generational loyalty, the scale of the decline is difficult to ignore.

Major alcohol brands remain well below their post-pandemic highs, and the downturn cannot be explained by inflation, supply chain disruptions, or changing nightlife patterns alone. Instead, analysts increasingly point to a deeper shift in consumer behaviour, one driven largely by younger adults who are drinking less, drinking differently, or choosing not to drink at all.

This does not signal the end of alcohol culture. But it does suggest a redefinition is underway.

Even Legacy Brands Are Feeling the Pressure

The impact is reaching even the most established names. Jim Beam, the 230-year-old Kentucky bourbon brand, announced it will pause production at its main Clermont distillery through the rest of 2026, marking the first shutdown of its kind in modern history.

While the pause is partly tied to U.S.–Canada trade tensions in early 2025, when Canadian liquor boards halted purchases of American spirits following new tariffs, industry analysts say broader forces are at play. According to Forbes, the slowdown reflects a mix of oversupply, shifting consumer habits, and growing health concerns.

In short, demand is no longer guaranteed.

A Global Decline, Driven by Younger Consumers

Bloomberg’s index, which tracks roughly 50 global alcohol companies, now sits 46 per cent below its 2021 peak, underscoring how widespread the shift has become.

While older generations still account for much of today’s alcohol consumption, the industry’s long-term outlook is increasingly shaped by Gen Z, a generation that treats alcohol as optional rather than expected.

For previous generations, drinking was often built into social life by default, nights out, celebrations, and casual gatherings almost always involved alcohol. For many young adults today, alcohol is simply one option among many, not the centre of the experience.

Canada’s Alcohol Market Reflects the Shift

Canada mirrors these global trends. According to Statista, alcohol consumption per capita fell to 88.2 litres in 2024, the lowest level recorded during the observed period, and nearly 18 percent lower than in 2008.

While, Spirits and ready-to-drink (RTD) beverages have gained ground, now representing 26.3 per cent and 8.7 per cent of the market respectively. RTDs in particular have grown by more than 200 per cent since 2011, reflecting demand for convenience and variety. Even so, overall alcohol consumption continues to trend downward.

Is Gen Z Actually Drinking Less?

Lower alcohol consumption among Gen Z does not mean young Canadians never drink, but it does indicate alcohol is less likely to be a regular habit.

According to data from Statistics Canada’s Canadian Community Health Survey, younger adults are less likely than older Canadians to report drinking alcohol in a given week. In recent survey cycles, a majority of Canadians aged 18–24 reported no alcohol consumption in the previous seven days, compared with just over half of adults overall.

Other surveys point to rising abstinence. A Leger survey reported in Canadian media found that 22 per cent of Gen Z Canadians (ages 18–27) say they’ve never tried alcohol, nearly double the rate reported by Millennials at the same age.

Together, the data suggest a pattern: fewer young adults are drinking weekly, and more are opting out entirely or reserving alcohol for specific occasions.

Constant Access to Wellness Information

One major factor shaping these decisions is constant exposure to wellness-focused information.

Unlike previous generations, Gen Z has grown up immersed in digital content about mental health, fitness, nutrition, sleep, and recovery. This information does not primarily come from formal education, but from social media, podcasts, fitness platforms, public health messaging, and licensed professionals sharing research in accessible formats.

Health Canada’s Guidance on Alcohol and Health emphasizes that even low levels of drinking carry measurable health risks, including impacts on sleep, mental health, and long-term disease risk. Given how active this generation is online, health information such as this is widely accessible and readily reachable.

GLP-1 Medications

An emerging influence on alcohol consumption is the rise of GLP-1 receptor agonist medications such as Ozempic and Wegovy. While these drugs are not specific to Gen Z, their growing use, now estimated at roughly one in eight adults, has coincided with research suggesting they may reduce alcohol cravings and consumption. Originally developed to treat type 2 diabetes and obesity, GLP-1 medications work by regulating appetite and blood sugar, but they also appear to affect brain reward pathways involved in addictive behaviours.

“People who take GLP-1s tend to have less of a craving for alcohol, the same way they have less craving for food,” says Dr. Charlie Seltzer, a Philadelphia-based obesity specialist. 

Emerging studies have found associations between GLP-1 use and lower alcohol intake, with some evidence pointing to reduced desire for alcohol and fewer heavy-drinking episodes among users.

As GLP-1 medications become more common, particularly among health-conscious adults focused on weight management and metabolic health,  they may add another layer to already shifting alcohol consumption patterns, especially among young adults who are increasingly attentive to wellness and long-term health outcomes.

Wellness, Performance, and Long-Term Thinking

For many young people today, drinking less isn’t just a passing trend; it’s part of a broader focus on overall wellness, performance, and long-term health outcomes. Research tracking youth drinking trends in high-income countries has documented sustained declines in alcohol consumption and alcohol-related harms in adolescent populations, suggesting that younger generations are moving away from traditional drinking norms toward healthier behaviours. 

This shift aligns with broader cultural and lifestyle priorities. Young people increasingly frame their daily choices, from nutrition and sleep to fitness and stress management, as intentional investments in performance and future well-being. For some, this means reassessing habits like alcohol use that can compromise those goals.

“Younger people are increasingly recognizing their often poor levels of health,” says Michael Hughes, Head of Research and Insight at FMCG Gurus. 

Research has found that alcohol consumption is associated with poorer sleep quality and disturbances in sleep patterns, while improvements in sleep have been linked to reductions in drinking among youth. Such findings support why many students prioritize getting enough restful sleep by cutting back on alcohol.

For students and athletes in particular, the effects of alcohol are immediate and tangible. Impaired sleep, delayed muscle recovery, and reduced next-day performance can undercut both academic focus and athletic output. 

“If you are an athlete, it messes with your recovery, it just makes your morning worse and your night worse,” says Peter Lee, a Dalhousie University student. 

These short-term consequences often lead to moderation or abstinence. A practical choice rather than a lifestyle sacrifice. Some young people are taking this mindset even further by deliberately reducing or eliminating alcohol to enhance performance and personal goals. 

“I drank a bit last year and decided this year I am going to stop drinking to see how it will affect my play,” says Maddux Steinley, a member of Dalhousie University’s men’s volleyball team. “It’s better financially, too. I’m not spending as much money.”

This kind of long-term thinking reflects a larger generational shift toward proactive health management, where the benefits of reduced alcohol use,  from better sleep and improved performance to greater financial and personal control, outweigh traditional cultural expectations around drinking.

Sorbriety in the Public Eye

Sobriety and reduced drinking have become more visible in celebrity culture, especially among actors and musicians in their 20s and early 30s. Stars like Zendaya have publicly stated they don’t drink alcohol even after reaching legal age, sharing personal reasons for that choice on social media and in interviews. 

Tom Holland, who first experimented with a “Dry January” in 2022, has openly discussed his decision to stop drinking in interviews and on podcasts, describing how his relationship with alcohol evolved and what motivated his continued sobriety.

Recent reports note that he has now marked several years of sobriety, framing it as a meaningful personal milestone. This journey also led him to co-found Bero, a non-alcoholic beer brand created to offer a social, alcohol-free alternative that reflects his commitment to a sober lifestyle.

This trend isn’t limited to a few names; broader coverage of sober or sober-curious celebrities in popular media shows a range of public figures choosing to share their experiences, contributing to wider awareness of alternative lifestyle choices. 

At the same time, dermatology and wellness sources increasingly discuss the visible effects of alcohol on skin health, linking alcohol consumption with dehydration, inflammation, and conditions like facial redness. Research suggests alcohol’s role in dilating blood vessels and impacting skin barrier function can lead to redness and flushing, and may play a part in flare-ups of conditions such as rosacea. 

By appearing in mainstream interviews and coverage across lifestyle outlets, these celebrity discussions bring attention to choices around drinking, and to conversations about physical well-being in an era defined by visual media.

Attention to Physical Appearance

Gen Z’s relationship with alcohol is characterized by increased attention to physical appearance in a media environment defined by constant visibility. Gen Z is the most photographed and recorded generation to date, with daily life routinely captured through social media, video calls, and high-resolution cameras.

Medical and dermatology sources document several physical effects associated with alcohol consumption. Alcohol acts as a diuretic, which can contribute to dehydration and temporary bloating, and as a vasodilator, which can cause facial redness and flushing. Repeated dehydration and inflammation have been linked to reduced skin elasticity, acne flare-ups, and signs of premature aging. 

As dermatology and skincare education have become more accessible online, awareness of these effects has increased. In a cultural environment where appearance is frequently documented and shared, these outcomes are part of broader discussions influencing how younger consumers evaluate alcohol use.

Redefining Social Drinking

As habits evolve, social spaces are adapting. Bars, restaurants, and breweries across Canada report growing demand for non-alcoholic and low-alcohol options. Non-alcoholic beers, mocktails, and alcohol-free spirits now allow people to participate socially without centring on alcohol.

Common alternatives include:

  • Mocktails made with non-alcoholic spirits, herbs, or fresh juices
  • Non-alcoholic beer, wine, and RTD beverages
  • Sparkling water with botanical flavours
  • Kombucha and fermented drinks
  • Low- or no-sugar sodas and tonics
  • Tom Holland Non-alcoholic beer brand: Our Beers | Premium Non-Alcoholic Beer – BERO

These examples offer a general overview and show how people can still participate socially while limiting or avoiding alcohol, reflecting changes in consumer demand and availability. A more detailed list of alcohol-free options is also available through the Alberta Beverage Awards.

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