Trendspotting: Millennials Still Wary of Alcohol

NewsWire: 10/13/21

• In a recent global poll, 56% of 18- to 24-year-olds said they think having one to two drinks a day is “harmful.” Young people are the only age group in which more people consider drinking harmful than did not. (Financial Times)
• NH: We have often written about Millennials drinking less than other generations. (See “Teens Are Waiting to Try Alcohol and Drugs” and “Where the Wild Things Aren't.”)  And this is proving true across many wealthy countries. (See “UK Millennials Have Gone Mild.”)
• A Jefferies poll of eight large economies shows just how negative young adults are about booze. 56% of 18- to 24-year-olds believe having one or two drinks a day is “harmful.” This is the only age group where more people thought drinking was harmful than not. 
• The survey asked respondents who are drinking less to rank their reasons why. Compared to adults overall, young people are significantly more concerned about preserving their "mental health" and avoiding "hangovers" and are somewhat more concerned about their "responsibilities" and their "money." Contrary to youth stereotypes, these risk-averse Millennials are thinking ahead. Older people are likely to drink less when directly facing a "health condition."

• This trend isn't necessarily bad news for alcohol producers. Many drink companies are simply adding non-alcoholic or low-alcoholic beverages to their offerings. Within the last two years, both Pernod Ricard (PDRDY) and Diageo (DE) have bought majority stakes in non-alcoholic spirit brands. And according to IWSR, between 2021 and 2025, global sales of non- or low-alcoholic drinks are expected to grow by +34%. That’s compared to only a +6% rise in total alcohol sales.