The Far-Reaching Implications of Decreased Alcohol Consumption

Gen Z is notorious for drinking (and partying) less than its parents (and even its older siblings), leading to decreased alcohol sales, nightclubs going out of business – and now, California’s wine growers tearing out vineyards as they can’t sell their grapes anymore. U.S. wine sales fell 23% from 2020 to 2025, and growers have pulled about a quarter of the state’s vineyard acreage out of production – it’s the perfect storm of Gen Z’s decreased appetite for alcohol, aging boomers drinking less, cannabis and canned cocktails taking market share, global oversupply plus Canadian tariffs. Time will tell what this means for California’s wine industry, farmland, rural jobs, and brands betting on alcohol.