Great news for Australia's bars, nightlife culture and hospo lovers: despite the chatter, Gen Z isn’t dry. And we’ve got the stats to back it up. The Time Out Australia Sip Happens white paper is a trend report that deep-dives into how Gen Z and Millennials are drinking in 2025. You reckon Gen Z has swapped cocktails for kombucha? Nope. Turns out 81 per cent of Australian Gen Zs drink alcohol – that's only 3 per cent less than Millennials. That said, they're prioritising experiences over binge drinking, as well as concept-led bars and socially responsible sips. We’ll cheers to that.
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The Sip Happens research, compiled by Time Out Australia’s creative solutions and insights team, took quantitative and qualitative consumer insights from Time Out Loud, our proprietary research community, combined with editorial expertise from Time Out’s editors and professional perspectives from key industry stakeholders. It found that 70 per cent of Gen Z respondents choose brands that align with their values. While 80 per cent of Gen Z are influenced by a venue’s vibe (hello, groovy underground haunt Pleasure Club), and price is the number one factor in deciding whether to drink.
The report reveals seven key trends shaping Gen Z and Millennial drinking culture in 2025, from ‘main character’ dinner parties and PowerPoint nights in, to chasing TikTok-famous cocktails like the ‘Spicy Sauvy B’.
Across these trends, one theme is clear: this is a generation choosing quality over quantity, prioritising vibe over volume, and balancing wellness with weekends worth remembering.
Seven trends shaping how Gen Z enjoy drinks in 2025:
- The Rise of ‘Main Character’ Hosting: Forget sticky-floored clubs – a popular drinking spot for Gen Z is at home with friends and family. Think moodboard-worthy dinner parties, let’s-get-lit book clubs and PowerPoint parties, all paired with cocktails as curated as the glassware they’re served in.
- Intentional Nights Out: Lockdowns may have changed nightlife, but Gen Z still goes “out out” – just on their terms. Shorter, more intentional evenings at vibey bars like Sydney's Bar Planet or Melbourne's Caretaker’s Cottage are in; sunrise benders are out.
- From Binge to Balance: Gen Z can hit the rooftop bar and still make their 8am pilates class. While money, not health, is their main reason for skipping drinks – they’re all about moderation, mini cocktails and wellness-meets-social nights.
- Experience Over Excess: When Gen Z heads out, they are chasing the vibe. They are 30 per cent less likely than Millennials to opt for traditional options, instead favouring immersive pop-ups, live music and multi-concept venues. From matcha-fuelled café raves to arcade-bar cocktail crawls, drinking is just one part of the experience, not the focus.
- Mixed to Match the Moodboard: For Gen Z, a drink can be an accessory. The vibe and aesthetic of a venue is just as important as what’s in the glass, with TikTok and Instagram driving discovery. Cocktails need to look good not just in pictures, but also on video – theatrical martinis, nostalgic throwbacks and viral “Spicy Sauvy B” cocktails are all part of the mix.
- Bougie on a Budget: Cost of living is shaping how and where Gen Z drinks. They want affordable luxury: $16 Negronis at all-day happy hours, drag brunches with bottomless bubbles and BYO nights at premium restaurants.
- Socially Responsible Sips: Values matter as much as flavour – 77 per cent are more likely to choose a brand or bar that stands for something they believe in, with natural wine, local producers and sustainable venues leading the way.
Kaylie Smith, Time Out's Managing Director, APAC, says: “Time Out knows cities like no one else, so when we started to ideate the theme for this report, we listened to our partners and clients. Knowing how to reach and engage with Gen Z – a key part of our Time Out audience – has been a misunderstood topic for a long time, especially in the alcohol space.
“When we uncovered these insights in our research, we knew we needed to use our connections and expertise to debunk the myth that Gen Z have all gone sober. Experiences are more important than ever, and we hope that through this research, we can provide insights for brands into Gen Z attitudes and behaviours.”
And if you’re looking for inspiration for where to do fun stuff, Time Out is a great place to start.
You can check out the full Time Out Sip Happens report here. And on that note, we say it’s time for a drink.