Is your brewery looking for new drinkers? You may find some best opportunities not among existing fans, but among people who rarely drink — or don’t drink at all — according to research presented at the 2025 Indiana Brewers Guild Conference. Dr. Matthew Bauman, associate professor at Purdue University Northwest, told attendees recently that breweries face a shrinking share of traditional drinkers but have “a clear path to growth” with two potential under-engaged groups: the “rarely drinker/non-drinker” segment and Gen Z.
He shared findings from a study of 794 Gen Z participants, ages 21 to 28. The research shows that while 72% of Gen Z still drinks alcohol, taste aversion, substitution behaviors, and low alcohol knowledge among certain groups continue to limit engagement with craft beer. Bauman said breweries should pay closer attention to three consumer segments: rarely drinkers, former drinkers, and never drinkers — groups that collectively reported significantly lower understanding of alcohol than current drinkers.
“More than one in two reported having low levels of alcohol knowledge, which suggests to us there’s an opportunity to really educate this group about craft,” Bauman said of former drinkers. He noted a similar pattern among those who have never consumed alcohol, adding that they “reported having really low levels of alcohol knowledge, and it makes sense.
”They never really engaged with the category at all.” Bauman also highlighted what he described as an “NA adoption gap.” Although Gen Z is aware of nonalcoholic options, regular consumption is rare.
“Drinkers are trying NA, but they’re less likely to convert to becoming regular consumers of NA,” he said. The issue, he added, is not awareness: “The problem isn’t that they’re aware of it, it’s that they’re not drinking it.”
Bauman said consumers often turn to nonalcoholic products at work events, when designated driving, or during daytime outings, but many styles still fall short.
“The body of the beer just isn’t there, right? Because the alcohol is missing,” he said when discussing NA versions of maltier styles.One of the most surprising findings, Bauman said, was how often Gen Z respondents rejected the taste of alcohol outright.
“Gen Z doesn’t like the taste of alcohol. They describe it as tasting like rubbing alcohol or really gravitating towards sugary things so that it masks the taste of alcohol,” he said.
Many young drinkers began with hard seltzers, which Bauman said remain “a popular gateway for Gen Z.”
Others substitute alcohol with cannabis.
“Many of them are discussing using cannabis in place of alcohol,” he said, calling it one of the most significant competitive pressures outside the beer industry.
Bauman urged breweries to rethink their taprooms as broader community spaces that welcome both drinkers and non-drinkers. He pointed to examples such as yoga sessions, knitting clubs, barbecue classes, and family-friendly programming as ways breweries already create belonging beyond alcohol consumption. Bauman emphasized that Gen Z values authenticity and transparency, particularly from local businesses.
“They don’t like it if you try too hard, or you fake being local, or part of the community,” he said.Across all consumer groups with low knowledge of beer in general, Bauman said increasing understanding of beer production is the clearest path to loyalty.
“Ultimately, knowledge is what’s driving consumption,” he said. He encouraged breweries to highlight their ingredients and processes, noting that “being transparent about the ingredients you use, describing the malt bill, describing the hop bill” can build both confidence and curiosity.
Bauman warned that some consumers are intimidated by the category.
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“Making people that are just starting off feel smart and not stupid” is essential, he said, contrasting craft beer’s approachability with the wine industry, which he described as often “pretentious.”
Bauman urged breweries to include high-quality NA beverages, mocktails, and other offerings for non-drinkers, citing the “veto vote” that often redirects a group to venues with broader options. He also pointed out that one in four Gen Z adults does not drink alcohol but still wants to be a part of the fun.
“A little over one in four Gen Z don’t drink, but they still want to belong,” he points out.He encouraged breweries to take three immediate actions: add one high-quality NA option, create at least one educational touch point, and occasionally host a drinking-optional event to see how your space can be showcased as a community third-space rather than just a drinking establishment.
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