Gen Z: The Generation of Moderation (With a Canadian Flavour)

 Gen Z: The Generation of Moderation (With a Canadian Flavour)

At Branding & Buzzing, we’ve long known that beverage trends shift with each generation. But Gen Z isn’t just another consumer group — they’re leading a cultural reset in drinking habits. Whether you’re a Canadian beverage brand or selling into Canada, understanding this audience is crucial.

1. Drinking Less, But Staying Social

As outlined in The Spirits Business, Gen Z is drinking less — but not disconnecting from social life. Globally, 75% are actively moderating their alcohol intake. In Canada, it’s even more pronounced.

  • According to IWSR, 44% of Canadian Gen Z legal-age adults reported abstaining from alcohol in the past 6 months — the highest across all demographics.

  • Rather than disappearing from the scene, they’re embracing zebra striping — alternating between alcoholic and non-alcoholic drinks in the same setting. This is growing in cities like Toronto, Vancouver, and Montreal, where wellness meets nightlife.

2. Non-Alcoholic and Low-Alc Innovation Is Key

  • The no/low alcohol category in Canada is booming. Whether it’s non-alc beers, functional seltzers, or mood-forward RTDs, the shelves are expanding quickly.

  • NielsenIQ (NIQ) and IWSR both project the Canadian no/low market to see steady year-over-year growth, especially with Gen Z leading the charge.

  • Brands like Barbet (Toronto) and Clearsips are paving the way with elevated, non-alcoholic options that still feel special and social.

3. Flavour, Function, and Fun

Gen Z are flavour chasers — looking for experiences, not just drinks. This means…

  • Bold and adventurous flavour profiles

  • Health-forward ingredients like adaptogens and botanicals

  • Eye-catching packaging and branding that feels personal

From CBD-infused sparkling waters in British Columbia to kombucha cocktails at pop-ups in downtown Toronto, this generation wants a deeper, more meaningful drink experience.

4. Values Matter — So Do Stories

Gen Z drinks with purpose. They support brands that reflect their values — diversity, sustainability, mental health, and transparency.

  • Purpose-driven brands such as Collective Arts Brewing in Hamilton or Silver Swallow kombucha in Ottawa speak to the demand for identity-aligned sipping.

  • Quirky names like Dad Water or Mom Water show there’s room for humour and self-awareness — as long as it’s done authentically.

🛠 Tips for Beverage Brands in Canada (or Selling Into It)

Strategy Why It Matters to Gen Z
Expand your no/low and RTD line-up This market segment is growing and Gen Z is driving the demand
Support zebra striping behaviour Include non-alc pairings and cocktail alternatives on menus and in activations
Lead with function and flavour Think clean ingredients, bold flavours, and clear health benefits
Speak their values Focus on sustainability, wellness, inclusivity, and storytelling
Premium without pretension Make the product feel special, not elitist — Gen Z will pay more for better, not bougie
Meet them online Social, digital, and creator-led marketing wins hearts and carts

🇨🇦 Why This Matters in the Canadian Context

  • RTDs & Spirits Are Winning: While traditional beer and wine struggle, Canadian whisky and RTD spirits are gaining traction with younger audiences.

  • Mocktail Menus Are In: From Calgary to Halifax, bars and restaurants are updating menus with zero-proof offerings — not as afterthoughts, but centrepieces.

  • Retailers Are Responding: Sobeys, LCBO, and Loblaws are dedicating shelf space to the no/low category and bringing in more indie brands to meet the moment.

Final Sip

Gen Z is drinking differently — but they’re still raising their glasses. They want options. They want balance. They want brands that reflect who they are.

If you’re a Canadian beverage brand — or looking to expand into Canada — now’s the time to adapt. Offer flavour-forward, wellness-driven, and inclusive options that support both moderation and connection.

It’s not just about less alcohol — it’s about more meaning.