Why are Gen Z'ers drinking less at concerts than previous generations?
A report from Billboard highlights a concerning trend for the live music industry: Gen Z, the generation born between 1997 and 2012, is drinking noticeably less at concerts compared to older generations. This behavior shift impacts smaller venues, many of which already struggle with tight profit margins.
But why? The reasoning seems to point to edibles.
Dayna Frank, president and CEO of First Avenue Productions, a concert venue and promotion company in Minneapolis, Minnesota, said, "Gen Z just doesn't drink as much. They’re either eating edibles before they come or there’s more of a sober, mental health [focus]… Most of the ticket price goes on to the band, so really what [venues] subsist on is beverages. That’s not going to be a sustainable revenue stream.”
All of this seemingly began once the world started coming out of the COVID-19 pandemic.
David Slutes, entertainment director at the 325-capacity Club Congress in Tucson, Arizona, observed a 25% decrease in alcohol sales at events catering to Gen Z audiences. “Coming out of COVID-19, everything about the live music business was turned upside down. We weren't sure why the numbers were like this," Slutes told Billboard, "but after a closer look, we saw a clear pattern at Gen Z-focused events."
These observations align with a 2020 study by Texas State University professor of psychology Ty Schepis. The study revealed that 28% of college students aged 18-22 abstained from alcohol in 2018, compared to 20% in 2002. Additionally, the study found that alcohol abuse in the same age group had been cut in half during that period.
Schepis further noted in an interview with Billboard that Gen Z's lower alcohol consumption is a continuation of a trend. However, he also pointed out an increase in marijuana use among college students (from 33% to 37%).
With marijuana edibles being the new trend, alcohol sales seem to be down in general across all generations. Mikey Wheeler, general manager of Austin's Mohawk, another small venue, has observed an overall decline in alcohol sales, “not even just from Gen Z, but from our older audiences as well.”
As insurance and labor costs continue to rise, small venues are surely facing pressure to adapt and find alternative revenue streams. This may involve expanding non-alcoholic beverage offerings, promoting venue merchandise, or exploring the possibility of offering CBD-infused drinks. And why not edibles too?
Editor’s Note: A few months ago on our podcast, Unplugged with Tyler Winters and John Pearman, we talked about this very thing. Give it a listen here.