There has always been conversation around drinking habits in Australia, but the shift we are seeing in 2025 is different. This time it is not a trend. It is a structural change in how Australians choose to socialise, celebrate and dine.
Cafés, restaurants and caterers are all feeling it. Younger diners are drinking far less than previous generations, older diners are becoming more mindful and large groups now mix drinkers and non-drinkers at almost every table. Add the rise of premium no-alcohol spirits, beers, and wine, and the result is a new expectation that every venue can offer a strong low- or no-alcohol experience without compromising revenue.
This is the landscape operators are moving through now, and it will only strengthen in 2026.
Several clear data sets point to the same reality.
• Non alcoholic drink sales in Australia have grown more than 30 per cent year on year
• Gen Z drinks about sixty per cent less alcohol than Millennials did at the same age
• One in three Australians says they have reduced their alcohol intake in the past twelve months
• Seventy per cent of younger diners now check the zero alcohol options before ordering
• Non alcoholic cocktails and mixed drinks are among the fastest-growing beverage categories across restaurants and events
This is not an isolated city trend. These changes are being reported across metro, regional and suburban venues.
Generation Z is the first group to move through cafés, restaurants and bars with a very different relationship to alcohol. Many of their choices are shaped by:
• Health
• Mental clarity
• Budget
• Social media awareness
• A desire to stay in control
• A cultural shift away from heavy drinking
They still want to socialise, but they want the experience without the effects of alcohol. They enjoy flavour, presentation, experimentation and a sense of fun. This is why mocktails, spritzes, sodas, kombucha, and alcohol-free beers perform well with this group.
Importantly, Gen Z does not want to feel singled out for not drinking. They want the drink to look and feel part of the occasion without being a second-tier option.
Millennials are entering an era of balancing family, work, and lifestyle. Many are choosing to reduce alcohol during the week, limit spending or focus on sleep and wellbeing. They still appreciate a good beverage list, but they want alcohol free options with the same level of effort and attention as the regular list.
Gen X diners are becoming more mindful as well. They still enjoy wine and cocktails, but many prefer to start or finish a meal with something lighter. They are also sensitive to cost and value and often mix alcoholic and non alcoholic choices throughout the meal.
Baby Boomers are not reducing alcohol as sharply as the younger groups, but they are aware of the quality improvement in alcohol free drinks. They are choosing zero-alcohol wines and beers for early dinners, lunches, and events that involve driving.
This group is also more willing to try alcohol free options when staff can explain flavour and style clearly. As quality continues to improve, expect to see more Boomers ordering zero-alcohol options in 2026.
The shift raises one major question: how can venues maintain revenue when alcohol spend drops but drink expectations increase
The answer lies in mindset and menu structure.
Alcohol free drinks can carry the same perceived value as alcoholic drinks when they are well presented, properly positioned and integrated into the experience.
Customers are willing to pay for:
• Premium mixers
• Fresh fruit
• House-made syrups
• Balanced cocktails
• Well-crafted spritzes
• High-quality zero ABV wines and spirits
They are not willing to pay the same price for basic soft drinks or plain juice.
This is why the low- and no-alcohol category presents a genuine revenue opportunity. It is not about replacing alcohol. It is about widening the offer so every diner can participate in the beverage experience.
Operators who succeed in this space do a few things well.
1. They give the zero alcohol list equal importance
Not hidden at the bottom. Not a single token option. A real list with choice, balance and flavour.
2. They think about the presentation
Glassware, garnishes and colour matter. If the drink looks exciting, people order it.
3. They explain the options clearly
Quick flavour notes and simple language help staff upsell without pressure.
4. They price with purpose
Customers will pay for craftsmanship, not for juice in a tall glass.
5. They treat beverages as part of the menu, not an afterthought
Great venues pair food and zero alcohol drinks with the same care they use for wine.
Caterers are reporting a significant increase in demand for balanced beverage packages. Corporate groups, weddings, community events and daytime functions now expect:
• A strong zero alcohol selection
• Attractive non alcoholic cocktails
• Seasonal house-made drinks
• The ability to offer full beverage packages without pushing alcohol
Many caterers are increasing package prices slightly to include these premium options and clients are willing to pay for it because it supports guest comfort and experience.
Current data and on-the-ground feedback suggest the following:
• Zero alcohol spirits will continue to grow rapidly
• More operators will create house-made drinks to build margin
• Guests will expect variety beyond soft drinks and juice
• Zero alcohol wine quality will improve again, making it more appealing to older diners
• Mixed beverage tables will become the norm at events
• Venues without a considered zero alcohol list will stand out for the wrong reasons
The strongest operators will not treat this as a trend. They will treat it as the new baseline and build beverage programs that feel inclusive, thoughtful and commercially sound.
This shift is not reducing dining out. It is reshaping it. When guests feel looked after, included and confident in their drink choices, they stay longer, spend willingly and return. Venues that adapt early will benefit from stronger loyalty and broader appeal across all generations.