Shopping: How to win with Gen Z: Seven insights from a CGA by NIQ webinar
- InsightTrendsWorld
- May 8
- 9 min read
Why is the topic trending:
Gen Z's Importance in the On-Premise: The article highlights that Gen Z consumers, who are now of legal drinking age, represent a crucial demographic for growth in the on-premise (eating and drinking out) sector globally.
Understanding Gen Z Needs: The piece notes a knowledge gap among industry leaders regarding how to effectively cater to the needs and preferences of this generation.
Webinar Insights: The article summarizes key findings from a CGA by NIQ webinar focused on understanding Gen Z's habits and needs in the on-premise market.
Squeezed Footfall and Consumption: The article acknowledges the current challenges in the on-premise sector and positions understanding Gen Z as a way to overcome these challenges.
Overview:
The article summarizes seven key insights from a CGA by NIQ webinar about how to attract and retain Gen Z consumers in the on-premise (eating and drinking out) market. It emphasizes the significant influence of this digitally native generation, noting their high frequency of visits to pubs, bars, restaurants, and cafes. The webinar revealed that Gen Z are digital natives heavily influenced by social media, with Instagrammability being a key factor in their choices. They are also shifting towards earlier dining times, prefer cocktails over beer, prioritize quality over quantity in their drink choices, and show a growing interest in moderation. The insights provide guidance for suppliers and operators in the on-premise sector to better engage with Gen Z and secure their spending.
Detailed Findings:
Gen Z Love the On Premise: 72% of Gen Z visit on a weekly basis, significantly higher than the average consumer (56%). Their confidence in visiting more frequently is also increasing.
Digital Natives: Gen Z are highly connected, having grown up with smartphones and social media. Their online presence is important to them, and social media heavily influences their decisions on where to eat and drink (60% get ideas from friends' feeds).
Instagrammability is Vital: Visual appeal is crucial, with 46% often choosing drinks based on how they will look on social media. This makes serve strategies very important.
Changes in Dayparts: 30% of Gen Z are going out to eat earlier than a year ago, aligning with a global trend. However, drink-led occasions for Gen Z still peak late at night (11 pm-midnight).
Cocktail Consumption Beats Beer: Significantly more Gen Z consumers choose cocktails over beer in key markets. This is driven by the desire for visually appealing drinks for social media and an interest in trying new tastes (over half have tried a new drink in the last month).
Demand for Quality Over Quantity: 57% of Gen Z would prefer one or two high-quality drinks over four or five lower-quality ones, indicating a potential for premiumization.
Interest in Moderation: 31% of Gen Z are drinking less alcohol than a year ago, presenting opportunities for no and low alcohol alternatives.
Key Takeaway:
To effectively engage and win the spending of Gen Z consumers in the on-premise market, suppliers and operators need to understand their digital-native nature, the importance of social media and visual appeal (Instagrammability), their evolving daypart preferences, their preference for cocktails and quality over quantity, and their growing interest in moderation, while also recognizing their strong engagement with the on-premise in general.
Main Trend:
Understanding and Catering to the Unique Preferences of Gen Z in the On-Premise Food and Beverage Sector
Description of the Trend (please name it):
The Gen Z On-Premise Playbook
What is consumer motivation:
Socializing and connecting with friends in physical spaces.
Creating visually appealing content for their social media profiles.
Experimenting with new and interesting food and beverage options.
Seeking high-quality experiences and products.
Balancing social drinking with health and wellness trends like moderation.
What is driving trend:
Gen Z becoming a significant portion of the legal drinking age population.
The pervasive influence of social media on their choices and behaviors.
Their preference for experiences over material possessions.
A growing interest in diverse and innovative food and beverage offerings.
Increased awareness around health and wellness, leading to a focus on quality and moderation.
What is motivation beyond the trend:
Basic needs for food and drink.
Desire for enjoyment and social interaction.
Description of consumers article is referring to:
Age: Gen Z, specifically those born between 1997 and 2012 who are of legal drinking age (in the US, typically 21 and older, but this article has a global scope).
Gender: Not specified in the article, likely includes all genders within the Gen Z demographic.
Income: The article mentions Gen Z may be the "largest, wealthiest" generation, suggesting a significant spending power within this cohort.
Lifestyle: Digitally native individuals who are active on social media, value experiences in pubs, bars, restaurants, and cafes, and are open to trying new things in the food and beverage sector.
Conclusions:
Gen Z is a vital demographic for the on-premise sector, exhibiting distinct preferences and behaviors driven by their digital-native upbringing and evolving social values. Understanding and catering to these unique characteristics is crucial for businesses looking to succeed in this market.
Implications for brands:
Beverage Brands: Should focus on creating visually appealing cocktails and premium offerings, as well as developing appealing no and low alcohol alternatives.
Food Brands: Should consider how their offerings fit into earlier dining occasions and can be presented well on social media.
Implication for society:
Highlights the evolving social habits of younger generations, with the on-premise sector playing a central role in their lives. It also reflects broader trends in beverage consumption, such as the rise of cocktails and moderation.
Implications for consumers:
Gen Z consumers have significant influence on the trends in the on-premise market, and their preferences for quality, visual appeal, and moderation are shaping the offerings and strategies of businesses in this sector.
Implication for future:
As Gen Z's spending power continues to grow, their preferences will increasingly dictate the direction of the on-premise food and beverage industry, making it essential for businesses to stay informed and adapt to their evolving tastes and behaviors.
Consumer Trend (name, detailed description):
The Socially Conscious and Visually Driven Gen Z On-Premise Patron: This trend describes Gen Z consumers who frequent on-premise establishments, heavily influenced by social media for discovery and choice, prioritizing visually appealing, high-quality food and beverage options, and increasingly interested in moderation.
Consumer Sub Trend (name, detailed description):
The Instagrammable Indulger: A sub-trend highlighting Gen Z's tendency to select food and drinks that are aesthetically pleasing and "Instagram-worthy," driven by a desire to share their experiences online and enhance their personal brand.
Big Social Trend (name, detailed description):
The Centrality of Social Media in Consumer Decisions: Social media platforms are playing an increasingly powerful role in influencing consumer choices, particularly for younger generations in areas like dining and entertainment.
Worldwide Social Trend (name, detailed description):
Global Shift Towards Earlier Social Dining: The trend of consumers, including Gen Z, choosing to dine out earlier is a global phenomenon impacting the on-premise sector worldwide.
Social Drive (name, detailed description):
The Desire for Social Connection and Curated Online Presence: Gen Z is driven by a need to connect with peers in real-world settings while also maintaining a compelling and curated image on their social media profiles.
Learnings for brands to use in 2025: (bullets, detailed description)
Gen Z are frequent visitors to on-premise establishments.
Social media is a primary driver of their decisions.
Visual appeal (Instagrammability) is paramount.
Earlier dining times are becoming more popular.
Cocktails are favored over beer.
Quality is preferred over quantity.
Moderation is a growing trend.
Strategy Recommendations for brands to follow in 2025: (bullets, detail description)
Develop visually appealing and shareable food and beverage offerings.
Actively engage with Gen Z on social media platforms.
Consider earlier dining options and promotions.
Offer a diverse and high-quality cocktail menu.
Provide premium options alongside value choices.
Introduce appealing no and low alcohol alternatives.
Final sentence (key concept) describing main trend from article (which is a summary of all trends specified):
In 2025, "The Gen Z On-Premise Playbook" reveals that understanding the digitally native, visually driven, and experience-oriented preferences of Gen Z is crucial for suppliers and operators in the on-premise food and beverage sector to secure growth in a challenging market.
What brands & companies should do in 2025 to benefit from trend and how to do it:
In 2025, brands and companies in the on-premise food and beverage sector should prioritize creating visually appealing and high-quality products that resonate on social media to attract Gen Z consumers. They should also consider earlier dining options, emphasize cocktail offerings, provide premium choices, and cater to the growing interest in moderation with appealing no and low alcohol alternatives, all while actively engaging with Gen Z on their preferred digital platforms to build meaningful connections.
Final Note:
Core Trend: Understanding and Catering to the Unique Preferences of Gen Z in the On-Premise Food and Beverage Sector: Businesses need to adapt to Gen Z's specific needs when they eat and drink out.
Core Strategy: Focus on visual appeal for social media, offer quality cocktails and premium options, consider earlier dining, and provide no/low alcohol choices.
Core Industry Trend: The on-premise sector is increasingly focused on attracting the growing and influential Gen Z demographic.
Core Consumer Motivation: Social connection, visually appealing experiences, quality products, and a balance with health trends.
Final Conclusion: Gen Z holds significant power in the on-premise market, and businesses that proactively cater to their unique digital-native, experience-driven, and health-conscious preferences will be best positioned for success.
Core Trend Detailed (Understanding and Catering to the Unique Preferences of Gen Z in the On-Premise Food and Beverage Sector):
Description: This core trend emphasizes the critical need for businesses operating in the on-premise food and beverage sector (pubs, bars, restaurants, cafes) to gain a deep understanding of the distinct habits, values, and preferences of Generation Z consumers. Born between 1997 and 2012, this digitally native cohort represents a significant and growing segment of the market, and their spending power will be crucial for the future growth of the industry. Successfully engaging Gen Z requires more than just surface-level awareness; it involves a comprehensive approach that acknowledges their digital fluency, social consciousness, preference for experiences, and evolving tastes in food and drink.
Key Characteristics of the Trend (summary):
Digital Native Influence: Gen Z's behavior is heavily shaped by their upbringing in a digital world, with smartphones and social media playing a central role in their lives.
Social Media Driven Choices: Platforms like Instagram and TikTok significantly influence their decisions on where to eat and drink.
Emphasis on Visual Appeal: The "Instagrammability" of food and drinks is a key factor in their selection process.
Shifting Daypart Preferences: Gen Z is increasingly opting for earlier dining times compared to previous generations.
Evolving Drink Preferences: Cocktails are generally favored over beer, and there's a strong interest in trying new and innovative beverages.
Quality Over Quantity: Many Gen Z consumers prioritize higher-quality drinks and experiences over consuming larger quantities of lower-quality options.
Growing Interest in Moderation: There's an increasing trend towards consuming less alcohol and exploring no and low alcohol alternatives within this generation.
Market and Cultural Signals Supporting the Trend (summary):
CGA's Global On Premise User Survey (OPUS) data indicating that 72% of Gen Z visit on a weekly basis, significantly higher than the average.
A Nielsen Insider survey revealing that nearly six in ten leaders don’t know how to address this generation’s needs, highlighting the knowledge gap and the importance of this trend.
OPUS data showing 38% of Gen Z plan to visit the On Premise more in the next three months, indicating increasing confidence and potential for spending.
The finding that 60% of Gen Z look through friends’ social media feeds for dining and drinking inspiration.
The statistic that 46% often base their drink choice on how it will look on social media.
Research showing 30% of Gen Z are going out to eat earlier than a year ago.
Data indicating significantly more Gen Z consumers are choosing cocktails over beer in key markets.
The finding that 57% of Gen Z prefer one or two high-quality drinks over four or five lower-quality ones.
Nearly a third (31%) of Gen Z reporting drinking less alcohol than they were a year ago.
How the Trend Is Changing Consumer Behavior (summary):
Increased Reliance on Social Media for Discovery: Gen Z is using platforms like Instagram and TikTok as primary sources for finding new places to eat and drink.
Prioritizing Visually Appealing Products: Aesthetic presentation of food and beverages is becoming a crucial factor in their purchase decisions.
Experimentation with New Flavors and Drink Categories: Gen Z is more open to trying new and unique cocktails and non-traditional beverages.
Seeking High-Quality Experiences: They are willing to pay more for products and environments that are perceived as high quality and authentic.
Embracing More Flexible Dining Schedules: The shift towards earlier dayparts indicates a change in traditional dining patterns.
Growing Demand for Non-Alcoholic Options: The interest in moderation is leading to increased demand for appealing and sophisticated no and low alcohol alternatives.
Implications Across the Ecosystem (For Brands and CPGs, For Retailers, For Consumers, summary):
For Brands and CPGs: Beverage companies need to innovate with visually appealing cocktails and cater to the demand for premium ingredients and unique flavors. There's also a significant opportunity in developing high-quality and appealing no and low alcohol options. Food brands need to consider how their products can be showcased effectively on social media and fit into earlier dining occasions.
For Retailers: On-premise venues (restaurants, bars, cafes) must invest in creating visually appealing environments and menus that are "Instagram-worthy." They should also consider adjusting their operating hours and offerings to cater to earlier dining preferences and provide a diverse range of high-quality cocktails and non-alcoholic options. Strong Wi-Fi and social media engagement strategies are also crucial.
For Consumers: Gen Z consumers are gaining significant influence over the direction of the on-premise market, driving innovation in both product offerings and venue experiences. Their preference for quality and visually appealing options may lead to higher standards across the industry. Their growing interest in moderation could also result in a wider availability of appealing non-alcoholic choices.
Strategic Forecast: Understanding and catering to Gen Z's preferences will become increasingly critical for success in the on-premise sector. As this generation's spending power continues to grow, businesses that fail to adapt to their unique needs and behaviors risk being left behind. Expect to see a continued emphasis on visual appeal, digital engagement, quality ingredients, and diverse drink options, including more sophisticated non-alcoholic alternatives.
Final Thought: Gen Z holds the key to future growth in the on-premise market. Businesses that prioritize understanding their digital-native mindset, social media influence, evolving tastes, and value for quality and experiences will be best positioned to win their loyalty and secure their spending in the years to come.
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