Additional Coverage:
- Gen Z and millennials are drinking less. Baby boomers are getting sloshed. (businessinsider.com)
Boomers Boozing While Younger Generations Cut Back
While younger generations explore sober curiousity, baby boomers are embracing their newfound freedom and financial stability with a cocktail in hand. This trend is bucking expectations, leaving the alcohol industry to grapple with a shifting demographic landscape.
A recent Bank of America Institute analysis revealed that while overall bar spending saw a modest 1% increase in January compared to the previous year, boomers spearheaded this growth with a 4% rise in their bar tabs. While younger generations still represent a larger overall share of bar spending, their individual expenditures are declining. Gen Z, for instance, saw a 15% drop in spending at bars and liquor stores in January compared to the same period last year.
This shift isn’t limited to bar visits. Data from CGA by NIQ indicates that average monthly spending at bars and restaurants for the 21-34 age group dipped from $166 to $154 between fall 2023 and fall 2024.
Conversely, the over-55 crowd increased their spending from $129 to $170 during the same timeframe. Gallup polls confirm this trend, showing a rise in the percentage of over-55 Americans who consume alcohol, while the numbers are declining for younger adults.
Several factors contribute to this phenomenon. Boomers, now enjoying retirement and financial security, have more disposable income and leisure time.
They’re indulging in premium wines and liquors, a stark contrast to the budget-conscious choices of their younger years. Experts suggest this “YOLO” mentality, combined with longer, healthier lifespans, fuels their desire for higher-quality alcohol.
Meanwhile, younger generations face mounting financial pressures, including mortgages, student loans, and childcare costs, making a night out less affordable. This financial disparity plays a significant role in the diverging drinking habits. As one expert noted, older generations haven’t been as impacted by recent economic headwinds as their younger counterparts.
Furthermore, boomers may be less influenced by current health concerns surrounding alcohol consumption. Having grown up in an era where moderate drinking was sometimes perceived as beneficial, they may be less inclined to adopt the sober curious trends embraced by younger generations. The rise of cannabis as a recreational alternative also contributes to the decline in alcohol consumption among younger demographics, a trend less prevalent among older adults.
The alcohol industry is taking note. Recent Super Bowl commercials featuring older celebrities highlight this growing market segment.
However, the industry faces a challenge: as boomers age, their alcohol consumption will inevitably decline. The industry is actively seeking ways to attract younger consumers, particularly in the wine market, where older generations currently represent the largest consumer base.
While health considerations are important, the current trend reflects a unique moment for baby boomers. They are embracing a time of financial freedom and leisure, enjoying the opportunity to indulge in a way they couldn’t before. It’s a generational shift with significant implications for the alcohol industry and a reflection of the evolving priorities and lifestyles of different age groups.
Read More About This Story:
- Gen Z and millennials are drinking less. Baby boomers are getting sloshed. (businessinsider.com)