After the health crisis, live music shows, massive festivals and gatherings seemed to be growing. However, although many complement the events with taking ‘some chelitas’a new report published by bill board, reveals that generation Z drink less alcohol at concerts, unlike their predecessors. Why is it important and how does it affect the industry?
It all starts with some small venue owners, who noticed that the younger audience’s alcohol consumption is falling, which affects a revenue stream for their businesses. Remember that generation Z is the age group born between 1997 and 2012approximately.
The outlet spoke to david slutesdirector of entertainment for the historic hotel and nightclub Club Congress in Arizona, with capacity for 325 people. slutes, noted a 25% reduction in alcohol sales among centennials. Therefore, although they pack the places, the influx is not reflected in the profits.
“Coming out of COVID-19, everything about the live music business was turned upside down. We weren’t sure why the numbers were like this. Then we did a deeper dive, and at each event aimed at a Gen Z crowd, we saw numbers that were very different,” David told the outlet.
On the other hand, at the Music Biz conference in Nashville, Dayna FrankCEO and president of the promotion company and concert halls First Avenue Productionsalso spoke about the decrease in alcohol consumption among the youngest.
“One of the big trends we’re seeing is Gen Z not drinking as much,” Dayna said.
“Are they eating before they get to the event or is there a more sober, mental health approach… Most of the ticket price goes to the band. So, really what places survive on is drinks. That is not going to be a sustainable income stream,” said the CEO.
Less alcohol and more weed for generation Z
What was said by the owners of these premises coincides with a 2020 study carried out by Ty Schepisprofessor of psychology at the Texas State University. So he found that 28% of college students ages 18 to 22 abstained from alcohol use in 2018, compared with 20% in 2002. Meanwhile, alcohol abuse in the same age range dropped by half in the same period of time.
Professor Schepis, also spoke to the outlet, adding that Generation Z tends to drink less than the older ones. However, he also noted that “this is the continuation of a trend.” However, Marijuana use has risen from 33% to 37% among college students.
Although the reason for the changes in consumption is not known for sure, there are some theories. For example, one is that adolescents have had more virtual than face-to-face contact in recent years, therefore it is not very common for them to use substances when they are alone.
Also, in the United States, marijuana is legal for medical or recreational use in several states. In addition, the perception of its consumption has changed over the years. In fact, now young people see more damage to health (and hangovers) from consuming alcohol than weed.
Centennials aren’t the only ones drinking less
The report emphasized that not only the youngest are abstaining from alcohol, but the other generations are following their example. Because? In the text, it is attributed to increases in insurance costs and labor payrolls.
So small venues especially are thinking about how to make up for the loss, whether it’s expanding non-alcoholic offerings, promoting merchandising from the site, or even looking for CBD-infused options.
Finally, according to another report carried out in 2018 by Berenberg Research, says centennials drink 20% more than millennials. While the latter also consume less alcohol than Generation Z and Baby Boomers.
However, Generation Z is the first to prefer other types of alcoholic drinks such as vodka, gin or wine to beer. Given that, view beer as inauthentic and unappealingaccording to the study of Berenberg Research. He’s also drinking less alcohol overall, in part because he no longer thinks drinking is ‘cool’, or looks good.
In terms of advertising, Big Brewers have historically targeted white men, a strategy centennials don’t like. Therefore, they are looking for other ways to avoid failing with the new young adults.
Does this mean that social campaigns against alcohol have had an effect on the population? Do you think the same thing happens in Mexico and Latin America? A few years ago we could see it impossible for this phenomenon to arise, but it is already happening.
Editorial Team The editorial team of EMPRENDEDOR.com, which for more than 27 years has worked to promote entrepreneurship.