THE NEW DRINKING CULTURE
Australia’s relationship with alcohol is continuing to evolve, and for clubs and pubs the changes are becoming impossible to ignore. Data from the Australian Institute of Health and Welfare (AIHW), the National Drug Strategy Household Survey and the 2024 DrinkWise Australia Drinking Trends Report point to a long-term moderation trend, particularly among younger Australians. While overall industry value continues to grow through premium products and innovation, the volume of alcohol consumed per person is steadily declining.
The AIHW figures show Australians consumed 9.8 litres of pure alcohol per capita in 2023-24, down from 10.5 litres the previous year and among the lowest levels seen in decades. Total alcohol available for consumption also fell by 3.7 per cent nationally. Importantly for venue operators, much of the future growth in the sector is expected to come from population increases, premiumisation and low or no alcohol alternatives rather than higher drinking volumes.
Gen Z Trends
The most significant demographic shift is occurring among younger Australians. Research highlighted by Flinders University found Generation Z is dramatically more likely to abstain from alcohol than Baby Boomers, reflecting a generational change in attitudes toward drinking.
Several factors appear to be driving this behavioural change. Health and wellness awareness is far stronger among younger consumers than previous generations, with growing understanding of alcohol’s links to cancer, mental health challenges, poor sleep and reduced fitness outcomes. The rise of “sober curious” lifestyles and moderation-focused social media content has also shifted perceptions. Younger consumers increasingly see reducing alcohol intake as aspirational and socially acceptable rather than restrictive.
Cost of living changes
Economic pressures are another major influence. Cost-of-living increases have made regular drinking less affordable, particularly for younger adults facing high housing and living expenses. Rather than consuming larger quantities, many younger patrons are choosing fewer drinks but better-quality experiences. This is reflected in the continued growth of premium spirits, craft beverages and ready-to-drink products, alongside a rapid increase in demand for alcohol-free and low-alcohol options.
Interestingly, social behaviour itself is changing. Researchers cited in recent alcohol statistics reports suggest social media and digital lifestyles may actually be reducing some of the traditional peer pressure associated with drinking culture. Younger Australians are also generally engaging later in a range of risk-taking behaviours compared with previous generations. For clubs and pubs, this means venues increasingly compete on atmosphere, food, entertainment, experiences and social connection, and not simply alcohol consumption.
However, the data also highlights some cautionary signs. While risky drinking overall has declined nationally, the DrinkWise Australia Drinking Trends Report noted that almost one-quarter of females aged 18-24 were exceeding recommended drinking guidelines in 2024, an increase from 2018 levels. Older demographics also remain more likely to drink at risky levels, particularly men in their 50s and 60s. This suggests that while moderation trends are real, harmful consumption patterns have not disappeared entirely.
For senior club and hotel managers, these demographic shifts carry important operational implications. Younger patrons are looking for flexibility, healthier choices and premium social experiences. Venues that expand quality low and no alcohol offerings, create sophisticated entertainment environments and diversify beyond traditional drinking culture are likely to be better positioned over the next decade. At the same time, older demographic groups still represent a substantial share of traditional beverage revenue, meaning operators will need to carefully balance innovation with existing customer expectations.
The broader takeaway is that Australia’s drinking culture is becoming more selective and experience-driven rather than volume-driven. The long-term decline in alcohol consumption does not necessarily signal declining opportunity for hospitality venues, but it does reinforce the need for adaptation. Clubs and pubs that recognise the changing expectations of younger generations and evolve accordingly are likely to remain highly competitive in a market increasingly shaped by moderation, wellness and premium experiences.
Sources referenced include the Australian Institute of Health and Welfare (AIHW), National Drug Strategy Household Survey data, Flinders University research and the 2024 DrinkWise Australia Drinking Trends Report.
