If Kombucha’s the New Tequila, What’s Next for Alcohol Brands?

Optimization gives way to excess

Gen Z has been widely characterized as one of the most sober-curious generations, more likely to prioritize gym sessions over late nights out, or macro-tracking over bar tabs. However, that long-standing narrative of restraint may be starting to shift.

“The concept I’ve been playing with is what I call ‘nihilistic indulgence’,” says Euromonitor’s Malandrakis. “The idea has emerged from looking at previous periods of major socioeconomic upheaval and from little signs that I’m seeing in adjacent industries, such as tobacco.”

He argues that younger consumers have spent years optimizing almost every aspect of life, from careers to personal branding, but that mindset is starting to fray under growing economic and social uncertainty. “They’ve been trying to optimize their personal branding, themselves, and the way they present all of that through their social media accounts,” Malandrakis says. “But the concept of hyper-optimizing oneself starts to make less sense when millennial and Gen Z consumers are not so certain about the safety of their jobs, when many feel they’re never going to have a pension, or that traditional safety nets are collapsing around them.”

In that context, behavior may move in the opposite direction. “In many cases, it could mean opting for higher-alcohol products rather than non-alcoholic alternatives. Why not make the most of the present?” he says, pointing to adjacent cultural signals, including a renewed visibility of smoking among younger demographics.

Beyond product choice, Malandrakis sees alcohol’s role becoming increasingly analogue. “Alcohol potentially offers moments that help us move beyond the digital realm,” he says. “As a focal point for conversations, it brings people together outside social media where everyone is essentially burned out.”

Over the past two years, Heineken has built campaigns around the idea that people are tired of digital interactions and crave real-world connection. Its #WorldsTogether initiative was created to “break down barriers and build mutual understanding, one conversation and one beer at a time”, according to the brand, while its more recent #SocialOffSocials and Group Chat Bar campaigns encourage consumers to leave group chats behind and socialize in-person. Meanwhile, Casamigos Tequila’s Anything Goes with My Casamigos campaign focuses on friendship and spontaneous social moments.