Understanding the Gen Z Shift: Why Low ABV is the New Standard in Canadian Alcohol Marketing

Understanding the Gen Z Shift: Why Low ABV is the New Standard in Canadian Alcohol Marketing

At Branding & Buzzing, we work at the intersection of cultural insight and strategic execution for the alcohol industry. As specialists in the space, we are seeing a significant shift in drinking habits—driven by Gen Z—and we believe it’s reshaping the Canadian alcohol market in real time.

The Numbers Tell the Story

According to a 2023 study by Berenberg Research, Gen Z is drinking 20% less per capita than Millennials did at the same age. The moderation movement, driven by concerns over health, wellness, and social responsibility, is no longer niche—it’s mainstream.

This is backed up by recent Canadian reports as well. A 2024 Health Canada survey revealed that more than 40% of Canadians aged 19 to 25 have actively reduced their alcohol intake, citing reasons such as mental health, fitness goals, and the appeal of mindful consumption.

The Rise of Low ABV & Aperitivo Culture

Low-ABV beverages—defined as those under 10% alcohol by volume—are seeing rapid adoption. The Canadian market is responding with an increase in spritzes, canned cocktails, and aperitivo-inspired drinks that speak to Gen Z’s desire for “less buzz, more vibe.”

“We’ve noticed a growing interest in our La Mundial vermouth, especially from younger Canadian consumers,” says our client at Juicy Wine & Spirits Club.
“Gen Z is adding it to ice or replacing traditional spritz ingredients like Aperol altogether. It’s flavour-forward, low ABV, and photogenic—everything this audience wants in a glass.”

This tracks with a larger Canadian trend where classic European aperitifs are gaining traction. According to Canadian Grocer, the ready-to-drink (RTD) and vermouth categories are growing faster than traditional spirits, particularly in urban centers like Toronto, Vancouver, and Montreal.

Why Gen Z Prefers This Path

Gen Z’s drinking behaviours are shaped by:

  • Social media influence – where aesthetics and branding matter as much as taste

  • Health consciousness – prioritizing energy, clarity, and balance

  • Cultural shifts – including Dry January and Sober October movements

  • New social norms – where opting for low or no alcohol is increasingly accepted

This generation is redefining what it means to enjoy a drink. It’s not about escapism, it’s about enhancement—of a vibe, a meal, or a gathering.

Strategic Implications for Alcohol Brands

For international brands like La Mundial, the opportunity in Canada is clear:

  • Position your products within the aperitivo or daytime drinking space

  • Collaborate with lifestyle and food influencers over traditional alcohol promoters

  • Introduce low-ABV products into RTD and spritz formats for North American palates

  • Leverage experiential events and tasting activations, especially those hosted by agencies like ours that specialize in Gen Z engagement