Winning over Gen Z Drinkers in the European On Premise: A Comprehensive Guide
The world's largest generation, Gen Z, is a critical demographic for the future of the European On Premise industry. With a focus on understanding their unique needs, preferences, and shifting trends, businesses can better connect with this generation and thrive in a challenging economic landscape. Here's a deep dive into the key insights and strategies to engage Gen Z drinkers.
The Social Factor: A Central Hub for Gen Z
Gen Z often discovers beverage brands while enjoying food or drinks out of home, making the On Premise a vital space for connection. Research confirms that nearly three-quarters (72%) of Gen Z visit pubs, bars, restaurants, and cafes weekly, a significant 16 percentage points higher than the average consumer. This trend is even more pronounced in countries like Italy, where 80% of Gen Z frequent these establishments.
However, the digital-native nature of Gen Z is a crucial aspect to consider. Social media profiles have become their personal brands, with over half (52%) prioritizing their online appearance. This generation's spending decisions are heavily influenced by social media, with 60% scrolling through friends' feeds for dining and drinking inspiration. To engage Gen Z, brands should focus on venues generating the most social media buzz and where these drinkers gather for drinks.
Cocktails on the Rise: Visual Appeal and Novelty
Beer remains the leading On Premise choice for Gen Z, but cocktails are gaining popularity, especially in key European markets. In Germany, Italy, and the Netherlands, cocktails have surpassed beer as the top choice. This shift reflects Gen Z's emphasis on aesthetics and their desire for new tastes and brands. More than half have tried a new drink in the past month, a 10 percentage point increase over the average consumer.
The visual appeal of cocktails, with endless customization options, is a significant draw for Gen Z. From colors and garnishes to glassware and serving styles, these drinks enhance social media presence and the drinker's social currency. Ensuring that what's served looks appealing on social media is a powerful organic marketing tool for venues and brands.
Moderation and Quality: A Balanced Approach
Gen Z's drinking habits are marked by moderation. While nearly a third (31%) report drinking less alcohol, only 15% drink more, resulting in a net difference of 16 percentage points. This dispels the myth of Gen Z as a 'sober generation,' as they are twice as likely to drink more compared to the average European consumer.
The no- and low-alcohol category is gaining popularity among Gen Z, ranking fifth in popularity, and over-indexing by 5 percentage points compared to other demographics. This presents an opportunity for brands to engage this cohort through no- and low-alcohol options, as they are drinking less alcohol, not less overall.
Late-Night Drinkers: Timing is Everything
Gen Z's drinking occasions have shifted due to COVID, with a trend towards earlier dayparts. However, they still prioritize late-night occasions, with drink-led occasions peaking between 11 pm and midnight. This creates a clear polarization, emphasizing the need for brands to focus on food-pairing opportunities, both alcoholic and non-alcoholic, to engage Gen Z effectively.
Conclusion: Unlocking the Potential of Gen Z
Gen Z is a complex but highly engaged demographic, with a significant share of visits to the On Premise planned in the coming years. By understanding their unique needs, preferences, and behaviors, businesses can shape their offerings to resonate with this generation. CGA's consumer research provides valuable tools for informed decision-making, helping On Premise businesses optimize sales and marketing strategies across various markets.
For more insights and expert analysis, contact George Argyropoulos, Managing Director, EMEA – On Premise, at https://cgastrategy.com/about-2/contact-us/?utmsource=nielseniq.com&utmcampaign=CMP-03591-F3T0R&utmmedium=Organic(Referral)&utmterm=globalabove-marketfmcgbevallgCGAcontactus2025&utm_content=.
