Mindful Drinking: How Moderation Trends are Shaping the Alcohol Industry

Across generations, alcohol drinkers are rethinking their relationship with alcohol and moderating their intake. Noa Friedman and Natalia Palacio explore how the mindful drinking trend is transforming the alcohol industry and opportunities for brands to appeal to shifting consumer attitudes towards drinking.

Posted on: Monday Apr 7th 2025

Article by: Environics Research

Key Alcohol Trends 2025

Alcohol trends have been in the spotlight in recent months as consumers embraced the challenge of going alcohol-free for Dry January and February. At Environics Research, we wanted to gain firsthand insights into the key trends shaping the beverage alcohol industry, so we interviewed our colleagues about how their drinking habits have changed in recent years.

A surprising trend we heard across all generations (from Gen Z to Boomers) was a growing emphasis on mindful drinking. In recent years, they have become more conscious of how they drink alcohol and moderated their consumption. Mindful drinking contributed to lower alcohol intake among our colleagues but influenced their drinking habits in different ways.

Pictures: Our team visited Sobr Market in Toronto, Ontario to explore and sample some non-alcoholic beverages. Sober Market is one of Canada’s leading retailers and distributors of alcohol-free wine, beer, and spirits.

Themes that surfaced during our interviews:

What are the attitudes and mindsets driving the mindful drinking trend? How does this translate into changes in drinking habits? What are the opportunities for alcoholic and non-alcoholic brands to appeal to shifting consumer tastes? Here are the main themes we heard in our interviews:

1. Drinking in moderation.

Mindful drinking isn’t about giving up alcohol entirely — it’s about drinking in moderation. While the sober curious trend continues to grow, with some opting to abstain from alcohol temporarily or entirely, mindful drinking is a distinct trend. With mindful drinking, individuals pay more attention to how they drink and the role that alcohol plays in their lives, often leading to reduced alcohol consumption.

“I only drink now in social settings, which is like once or twice a month. I don’t really consume alcohol by myself.”

– Gen Z

“Normally I drink on the weekends and it’s not excessive because I’ve cut back quite a lot. I’d say, probably four or five times a month.”

– Gen X

2. Concerns about side effects.

Health and wellness concerns about alcohol are driven more by a desire to avoid immediate side effects than by worries of long-term health risks. In recent years, our colleagues have been making more intentional choices about when they drink, considering how alcohol will impact their responsibilities and plans for the next day. They are more inclined to drink alcohol during special occasions and celebrations, preferring to drink with others than alone. More aware of the physical and mental side effects they experience while drinking alcohol, our colleagues moderate both the quantity and type of alcoholic beverages they consume in one sitting, allowing them to recognize when to stop drinking and avoid unwanted symptoms. Hangovers are avoided at all costs – the risk of losing a whole day of productivity and feeling unwell is not a worthy trade-off.

“I’m very specific about what I like to drink because I find it affects me a lot. I’ve learned what works for me because I don’t want to feel crappy the next day. I know the beverages that my body prefers so that I can feel good.”

– Gen Z

“For me, alcohol is a big de-stressor. Friday night after a tough day at work, I’m super excited to have my glass of wine. I only ever have one – I’m self aware of why I’m using it and that I have to be careful with that.”

– Gen X

“I think it’s age. I felt alcohol more after 30. When you hit a certain age, it feels like a switch. Everyone gives a different number, but it’s true. Like with my friends, we’re the same age. We can’t just keep drinking – the next day we have to take care of kids or work. We have to stop drinking at a certain point”

– Millennial

3. Changes in social settings and health norms.

Older generations are more likely than younger generations to drink alcohol both at home and when out, but are drinking less than before due to health considerations. In our conversations, younger colleagues talked about drinking alcohol mainly in social settings and rarely at home. In fact, they aren’t likely to even keep alcohol at home, particularly wine or spirits, instead opting for ready-to-drink beverages to pre-drink before a social outing. On the other hand, older colleagues drink when going out to a restaurant, bar, or other venue, but also when at home relaxing after a long day, having a glass with dinner, or hosting friends. In the past few years, however, most note that their consumption has changed – they are cutting back on alcohol and health is the main driving factor. For some alcohol poses risks to pre-existing health conditions, while others are more concerned with the short-term side effects of alcohol impacting their quality of sleep, mental clarity, and energy levels.

“I’m getting older and I can feel it more. It keeps me up at night after I drink it. I can’t drink more than a glass of wine in one sitting because I’d be up all night.”

– Gen X

“I would say it has changed recently, in the last year or so. Becoming more mindful of how I feel when I drink and why I’m drinking. Mindful drinking to me is about how it makes my body feel. One of the reasons why at my age you can’t have more than one is because even if you’re not hungover, you wake up the next day and you’re lacking energy and don’t want to do anything, so there’s a whole lost day there.”

– Gen X

4. Prioritizing a healthy lifestyle.

Younger generations are rethinking their relationship with alcohol, prioritizing wellness and lifestyle choices over traditional social expectations. Younger generations are approaching their drinking habits within a broader commitment to a healthy lifestyle. They are more likely to limit drinking alcohol when it interferes with their fitness or diet goals, like if they are planning to exercise the next day. In general, younger colleagues feel that nowadays there is less pressure to drink alcohol at social gatherings and less stigma around sobriety or exploring alternatives to alcohol. Acknowledging that drinking culture is influenced by friend groups and the atmosphere at social occasions, they believe that the subdued nature of social gatherings they attend as they get older contribute to decreasing alcohol consumption.

“It’s not always a conscious decision, but I feel like my alcohol tolerance went down. I don’t need to drink as much anymore, and I have more things to do. I don’t want to be hungover the next day.”

– Gen Z

“My friends from university are younger than me and they live in the city. They like going out more to bars. I find that group will drink a lot more. Whereas my other group of friends, they’re older than me and they’re in the suburbs, so it’s more house parties, getting together and playing board games. Drinking might be associated, but not as heavily. The three months when I wasn’t drinking, I felt more pressure from the one group than the other, like it’s noticeable that I’m not drinking.”

– Gen Z

5. Limited economic and social opportunities.

While alcohol remains tied to social occasions, fewer gatherings and tighter budgets are limiting opportunities to drink. Across generations, alcohol is mainly consumed during social gatherings. In recent years, there have been more work and social events with colleagues, friends, and family. However, the frequency of social gatherings remains lower than pre-pandemic levels. Furthermore, the rising costs of purchasing alcohol and going out for drinks, like paying for travel and cover charges, are perceived as a barrier to social gatherings. These social and financial factors are contributing to a decrease in drinking occasions.

“I think the vibe and frequency of house parties has changed since Covid. They’ve became less frequent and smaller groups now, whereas before they were more often. That’s very much a setting where you would be drinking.”

– Gen Z

“Drinks are so expensive now. In some restaurants it’s $20-30 – the same price as a meal! I’d much rather save that money and buy a more expensive bottle of wine and enjoy it at home where I know I don’t have to drive and I can have more than one glass.”

– Millennial

Opportunities for brands to consider:

The beverage alcohol market continues to demonstrate strong growth potential as consumer mindsets are shifting towards mindful drinking, moderation, and healthy lifestyle choices.

1. Demand for ‘lower’ and lighter alternatives.

Lower sugar, lower calorie, and lower alcohol options are resonating with both younger and older drinkers seeking healthier choices. Lighter drinks are appealing to younger and older alcohol drinkers alike who are motivated to make healthier drinking choices. In particular, there is a growing demand for low sugar alternatives in cocktails and ready-to-drink beverages from consumers who do not enjoy the taste of sugary drinks or choose to reduce their sugar consumption for health reasons.

“If I know it’s going to benefit me, then I won’t be as stingy on price. The number one thing for me is zero sugar.”

– Gen Z

2. Interest in functional benefits.

Functional beverages are disrupting the non-alcoholic category, offering added benefits that may encourage alcohol drinkers to explore alcohol-free alternatives. Based on our interviews, alcohol drinkers struggle to grasp the value proposition and price tag of non-alcoholic drinks. They tend to be less motivated by products like alcohol-free beer and dealcoholized wine that taste like the “real thing” or non-alcoholic RTDs and coolers that they perceive as overpriced sparkling beverages or pop drinks. However, alcohol drinkers are intrigued by non-alcoholic beverages that provide functional wellness benefits with ingredients like vitamins, probiotics, and adaptogens. Demonstrating added value with non-alcoholic beverages will be key to converting alcohol drinkers.

“We have started drinking sparkling waters and bubblies. Some nights if we’re watching a movie I might have a lime bubbly, where two years ago I would have had a beer. I don’t necessarily treat it as an alternative to alcohol, but I guess it is.”

– Gen X

3. Cannabis as a competitive alternative.

The growing availability of alcohol substitutes like cannabis is intensifying competition, yet there are opportunities for overlap with the non-alcoholic category. As social norms around alcohol are changing, younger generations are eager to explore alternatives to alcohol. Cannabis provides similar social and relaxation benefits with fewer drawbacks like hangover symptoms, becoming a major competitor to alcohol with the legalization and increased accessibility of cannabis in Canada. Nevertheless, cannabis presents yet another crossover into the non-alcoholic category, with a range of cannabis-infused beverages entering the market.

“I’d prefer to have weed than alcohol because you don’t get hungover the next day and it’s a relaxing feeling too. I think weed changed the game with my drinking habits.”

– Gen Z

4. Quality over quantity.

Consumers are shifting towards quality over quantity, demonstrating strong potential for premium offerings. As drinking occasions become more intentional, consumers are willing to spend more on higher quality beverages. Rather than drinking a high volume of alcohol, they are looking to savour the taste and enjoyment of the drinking experience and interested to explore new and unique beverages. While consumers may lean towards their tried and true favourites, there is an opportunity to trade up to premium offerings or switch to different brands within their preferred alcoholic beverage categories. Differentiating with branding and storytelling is essential for brands competing in the premium beverage market.

“I am now becoming more of a casual, higher value drinker as opposed to a more frequent drinker. Less frequent drinking, but more high-quality drinking.”

– Gen X

As the beverage alcohol industry continues to evolve and diversify with new and innovative offerings, it has never been more important to understand your customer and how their tastes and drinking habits are changing. Having a clear targeting and positioning strategy is crucial, especially for niche product offerings like non-alcoholic, functional, and cannabis-infused beverages that have yet to be adopted by a mainstream audience.

Environics Research’s proprietary Social Values help to uncover underlying mindsets and motivations to identify optimal target customers, such as those who are health conscious, open to exploration, and willing to spend more on premium brands.