Australia's long-standing love affair with booze is being rewritten, not by abstinence, but by intent. Gen Z is dialling down the alcohol, wellness is reconfiguring the occasion, and price pressure is shifting consumption from pubs to podcasts.

The traditional drinking moment, loud, social, and predictable, is giving way to a new landscape that's ambient, digital and deeply personal.

For marketers, that's not a red flag, it's a roadmap, according to Simon Schoen, National Head of Strategy & Planning at Zenith Australia who argues that the real opportunity is reframing the conversation around what it means to have a drink in 2025, and showing up where brands never bothered to look.

The latest data from Zenith's Imagine Panel suggests that 71% of Australians 18+ still report consuming alcohol in the past three months. But the picture is shifting and a growing cohort is cutting back, according to Schoen, who says about one in five people on average have reduced their alcohol intake.

It's a change driven by a mix of economic pressures, lifestyle changes, and evolving attitudes to health and socialising. "Cost-of-living increases and the rising perception of dining out as a luxury are reducing both occasions and opportunities to drink," he says.

While price and accessibility are part of the story, rising health consciousness is fuelling a cultural shift. "The zero-alcohol category is booming. 16% of Australians drank non-alcoholic alternatives in the last three months.

Meanwhile, participation in events like Dry July surged 150% year-on-year. Low-sugar and low-calorie options now influence 40% of beverage choices," he says. "Brands like Better Beer and the rise of hard seltzers are a testament to the demand for 'better-for-you' alternatives that don't compromise on experience."

The data also suggests younger Australians, particularly Gen Z, are redefining the role of alcohol in social life. "They're drinking less than older generations (34% haven't consumed alcohol in the past three months) and 24% have chosen zero-alcohol options, on par with sparkling water. Along with health consciousness, this is also partly driven by financial reasons (29% choosing non-alcoholic options to save money)."

The rise of what he calls 'soft clubbing' is also emblematic: "Think morning raves at cafes, DJ sets in bakeries, or run clubs replacing traditional nights out." These shifts are also driving greater social inclusivity, according to Zenith's data. Where it was once unusual (or even stigmatised) not to drink at events or social gatherings, choosing not to drink is being increasingly normalised, Schoen says. "With more non-alcoholic options on offer, social occasions are becoming more inclusive and accommodating for everyone." Of course all of these shifts create new challenges for alcohol brands.

"The challenge is no longer just about presence or price point. It's also about understanding the changing drinking landscape and occasions." The data also suggests that today's drinkers are harder to pin down. They're price-conscious, brand-agnostic, and increasingly swayed by wellness, aesthetics, and how flexibly a product fits into their lives."

"For instance, 41 per cent of beer and spirit drinkers regularly switch brands, while nearly two-thirds say price is the top consideration. Despite the hype, social media and influencer buzz remain sideshows, traditional levers like brand trust, personal experience, and word-of-mouth still carry the most weight at the point of purchase.

Per Schoen, "Traditional drinking moments such as watching sport or dining still matter, but the at-home occasion is the next big opportunity. The number of people who have a drink while watching TV at home rivals those who do so at stadiums, yet the category hasn't fully capitalised on this shift. There's untapped opportunity in modern rituals: having a drink while gaming, scrolling, listening to podcasts, or even unwinding solo in the company of online communities."

He says brands that once thrived on pub culture and live events must now find new ways to insert themselves into this evolving cultural context. "The new drinking moment isn't just social, it's personal, ambient, and digitally connected. For marketers, the opportunity lies in embracing this shift, exploring underleveraged occasions, and reimagining what it means to share a drink in 2025."

Additional reporting by Andrew Birmingham