Here Are 4 Gen Z trends Reshaping Society: And ASX Stocks Set to Win From Them, And Those Set to Lose

We often hear about Gen Z trends Reshaping Society. And this is not just speculation -there’s growing evidence Gen Z (short for Generation Z and compromising of people born roughly ~1996–2012) — are behaving in ways that are materially different from prior generations, and these shifts are beginning to challenge sectors built on habits and consumption patterns that were much more stable in older age groups.

This could be a chance for many ASX stocks to benefit in ways they would not have if only Gen Z stuck with the same habits as Boomers. But these trends could be existential crises for other companies if they don’t adapt.

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4 Gen Z trends Reshaping Society: And ASX Stocks Set to Win From Them, And Those Set to Lose

1. Drinking less alcohol

Alcohol producers, especially traditional beer, wine and spirits companies, have long counted on a pattern where younger adults gradually adopt alcohol consumption as part of social and adult life. That trend appears to be weakening:

Multiple studies have shown a long-term decline in alcohol consumption among younger people. In Australia, the share of young people aged 14–17 who abstained from alcohol rose from 39 % in 2007 to about 70 % in 2022–2023, and abstention among 18–24-year-olds increased from about 13 % to 23 % over the same period.

Surveys indicate that a high proportion of young drinkers are choosing moderation — opting for non-alcoholic or “sober-curious” alternatives and moderating their intake rather than drinking heavily. This has been described as a shift toward “zebra striping,” where alcoholic drinks are alternated with non-alcoholic options to avoid hangovers, reflecting a strong preference for mindful drinking. Even those who get into alcohol, do so later than other generations

For large alcohol companies — whether global brewers or wine producers — this means shrinking future core customer cohorts in traditional categories. While some of this shift is cyclical or influenced by economics, a structural move toward health, wellness and alternative beverage preferences among youth suggests long-term pressure on volume growth.

Companies like Endeavour (ASX:EDV), Lark Distilling (ASX:LRK) and Treasury Wine Estates (ASX: TWE) are at risk. Both of these, and their industry peers, already responded with low- and no-alcohol product lines, but these alternatives typically carry lower margins and can cannibalise more profitable categories.

Meanwhile, smaller niche brands and new entrants focused on non-alcoholic, functional or lifestyle-oriented beverages (including hard seltzers or adaptogen-infused drinks) are gaining relative traction precisely because they align better with younger consumers’ health-centric mindset.

2. Traditional Retail and Brand Loyalty

Gen Z consumers are more value-oriented and less brand-loyal than previous generations, often prioritising affordability, sustainability and authenticity over status branding.

In sectors like clothing and fashion, this has fuelled the second-hand and rental markets, and it has driven demand for downsized or “little luxury” products (e.g., smaller alcohol bottles, lower-commitment purchases).

These behavioural habits mean that high-margin traditional luxury goods and mass-market consumer products both face pressure unless they adapt to Gen Z’s preferences for value, sustainability and experiences over ownership and volume.

So this is bad news for traditional retailers like Myer (ASX:MYR), but could be an opportunity for companies that target Gen Z customers like Universal Store (ASX:UNI).

3. Paying with BNPL

This overlaps with our previous point. They are also more likely to live paycheck-to-paycheck and use buy-now-pay-later options, reflecting financial constraint and cautious spending.

Now this was what drove Afterpay which in 2021 was bought out by Jack Dorsey’s fintech Block (then Square) in what was the largest M&A deal in Australia’s history. Unfortunately, plenty of other wannabes came and went including Zebit, Openpay, Payright and Sezzle.

There’s really only Zip (ASX:ZIP) left and even that company struggled for survival for a few years because it is difficult to make a profit, at least when you don’t have scale.

4. Taking care of their health

Gen Z are a lot more health conscious and likely to embrace telehealth as they are digital natives, having never known a world without it. This includes drinking less alcahol (if at all) but also involves engaging in less sexual activity, smoking less and also proactively managing their health. Less sexual activity could be bad for Ansell (ASX:ANN) that makes condoms.

But increased telehealth could be good for companies like Alcidion (ASX:ALC) and MedAdvisor (ASX:MDR). One could argue Blinklab (ASX:BB1) could be in this list eventually, even if it is only targeting Generation Alpha (i.e. those born roughly 2010 to 2024) first, in light of higher rates of autism in the population.