At the core of decoding Gen Z: social responsibility and meaningful engagement

Gen Z is rewriting the travel retail spirits playbook, guided by peer influence and aesthetics and often deciding on impulse. The challenge for brands and retailers: how do you show up and sell to a generation that rejects traditional rules?

Recent m1nd-set data offers insight. Gen Z values price most, with 60% buying on promotion and an average spend of US$70, below the US$84 overall average. But price is only part of the picture: 14% say packaging drives purchases, and 11% are swayed by friends. Only 60% are influenced by staff, compared to 72% overall. Nearly one-third make unplanned purchases, often at the airport or in-store.

Industry leaders such as ARI, Pernod Ricard GTR and Quintessential Brands respond by meeting Gen Z where they are, balancing connection with tangible results.

Pouring into Gen Z preferences

Gen Z lives online, where influence moves fast. “It’s essential to engage with them as early as we can in their travel journey,” says Shane O’Sullivan, Global Buying Manager at ARI. The retailer leans into TikTok and Instagram with content such as recipes or viral trends. “It’s about keeping the category current and showing different usages for products,” he adds.

“This generation is extremely digital-savvy and thinks digital-first,” says Oliver Storrie, Managing Director at Quintessential Brands. “If they have a good experience with our brand, they will let the world know. But if they have a negative experience, they’ll be even louder.” Quintessential taps into consumer trends through gamification, competitions and geotargeted campaigns. The company also leverages third-party partnerships to drive buzz around popular products, such as its Kir Royal ready-to-serve cocktails, launched with Avolta in more than 100 airport stores as part of an Emily in Paris tie-in with Paramount Pictures.

Rae Gibson, Brand Director at Pernod Ricard GTR, says digital culture shapes both how Gen Z lives and how they shop. She points to projects such as Absolut Gift, a travel retail first with Heinemann Duty Free. The activation lets travelers personalize Absolut Vodka Original bottles by scanning a QR code, then co-creating a custom message with up to five people using photos, emojis or voice notes. The recipient then unlocks the message through augmented reality.

That said, the spirits category faces growing pressure as Gen Z’s views on wellness shift. In 2024, 59% of Gen Z travelers said they planned to cut back on alcohol, up 43% from the previous year, according to m1nd-set. The main drivers: physical health (65%), mental well-being (58%), and saving money (44%).

Gibson also notes category limitations as a challenge. “The liquor category has certain restrictions around aggressively targeting Gen Z travelers, as not all of them sit within legal drinking age,” she says.

To address these challenges, key players are leaning into research. ARI recently completed its Future Customer Initiative; an in-depth project aimed at pinpointing both near- and long-term engagement opportunities. “This was an extensive piece of work we undertook to reformulate our customer segmentation and identify the opportunity spaces to engage with passengers,” says O’Sullivan. ARI’s strategy is now tailored to the specific customer profile of each location, including Gen Z. “We know through our research that Gen Z passengers value authenticity and seek brands with compelling stories, traditional production methods and high-quality ingredients.”

Innovation on tap

Innovation fuels Gen Z engagement through new flavors, formats, limited editions and digital perks. Ready-to-drink (RTD) cocktails, no- and low-alcohol options and liqueurs are in rising demand. “RTDs are a long-term US trend going global,” says Gibson, with vodka leading, followed by tequila and whiskey mixes.

Limited editions grab attention through design collaborations spanning culture, music, fashion, and flavors. For example, Pernod Ricard GTR’s Absolut x Warhol partnership featured a striking blue bottle inspired by a rediscovered Andy Warhol painting. The campaign combined pop-ups, 3D airport media and influencer content, initially targeting millennials but resonating stronger with Gen Z, according to Gibson.

When it comes to categories, white spirits dominate Gen Z travel retail, especially vodka. “Gen Z buys twice as much vodka as the average traveler,” says Gibson, who adds that Absolut leads as the number one vodka globally, backed by innovation and its inclusive “Born to Mix” ethos and mantra.

Tequila is gaining momentum but remains underdeveloped in travel retail versus domestic markets. “It’s an ideal category for premiumization,” Gibson notes, highlighting strong response to super-premium Altos Tequila and the European expansion of ultra-premium Código 1530 Tequila. While the US leads sales, EMEA, APAC and GIBU show the strongest growth forecasts. Agave spirits purchases among Gen Z are also twice as high, prompting further investment from Pernod Ricard GTR.

Gen Z’s adventurous palate fuels interest in flavored and novel spirits. ARI’s O’Sullivan points to brands such as Dead Man’s Fingers rum and honey whiskey liqueurs such as Tullamore Dew Honey, which add playfulness to the category.

Gin also resonates. “Opihr Oriental Spiced Gin connects consumers to the regions where we source botanicals, making it one of the fastest-growing premium gins,” Quintessential Brands’ Storrie says, adding that its narrative of travel fits naturally within the travel retail space. Educational digital marketing on Greenall’s Gin is also resonating, highlighting its heritage and quality.

Serving up experiences

Driving sales today means going beyond the shelf. Immersive, experience-led retail, often referred to as “retailtainment,” is proving essential, particularly when it comes to younger shoppers.

“Conversion can be a challenge with this particular demographic,” says O’Sullivan. “Retailtainment is essential and something we do incredibly well at ARI.” A core strategy is “liquid to lips,” or putting product directly into consumers’ hands, which adds to the overall travel retail theater. “It’s fundamental for the spirits category, and is particularly important for local and new products,” adds O’Sullivan. “We know that Gen Z passengers want this sort of engagement.”

ARI has brought this approach to life through seasonal activations such as World Cocktail Day and World Whiskey Day, which included tastings, product demos, whiskey ambassador insights and value-led promotions. “We take a very bespoke approach across each of our locations, ensuring that our range and assortment is adapted to the passenger demographic,” explains O’Sullivan.

“Travel retail exclusive and first-to-market launches add an air of exclusivity to the retail experience that Gen Z passengers love,” O’Sullivan adds. “We have brilliant partnerships with our brands and often work with them as a launchpad for new products or to trial new concepts.”

One standout example was "Arrive Like a Local," a digital campaign created in collaboration with Pernod Ricard GTR. The activation connected with travelers across multiple touchpoints. “It’s about creating memorable, engaging and localized experiences,” shares O’Sullivan.

In 2024, Pernod Ricard GTR upgraded the omnichannel campaign and rolled it out to over 36 airports worldwide as “Jameson Passport,” powered by AI learning and Visa payment technology. “The incorporation of Web3 technology not only enabled seamless engagement, but also allowed us to debut interactive features such as virtual token collection, augmented reality and gamification,” said Gibson, adding that offering a digital gift-with-purchase in multiple airport locations aligned perfectly with their strategic objectives and gave consumers something of value they don't have to physically carry.

Pernod Ricard GTR also brought retailtainment beyond the airport in a campaign for Chivas Regal, launched in partnership with Avolta and Manchester United FC. “It aligned with our mutual objective of targeting incremental travel retail shoppers and simultaneously increasing footfall and conversion,” says Gibson. Shoppers who purchased Chivas Regal at World Duty Free could scan their Red by Dufry membership for a chance to win tickets to a Manchester United vs. Arsenal match, using in-store QR codes, app-based integration and targeted emails.

Sipping sustainably

For Gen Z, sustainability is the baseline. “Social issues matter to this generation, so we need to be authentic in everything we do and when we engage them,” says Storrie. “They have an inclusive approach to the community, which we also need to be aware of in our various campaigns.”

One example Storrie shares is Quintessential Brands’ Greenall’s Gin, which uses a 94% paperboard bottle, thereby cutting weight, carbon footprint, and water usage. “With every sip of your G&T, you’re not only tasting something good, you’re doing something good,” says Storrie. The bottle’s carbon footprint is up to 75% lower than glass, water use is reduced dramatically, and its recyclable liner separates easily for optimal recycling and sorting. The brand also partners with Ecologi to plant trees in reforestation areas, extending its environmental impact.

Pernod Ricard GTR’s Future of Packaging team also pushes waste reduction, from modular pop-ups and lighter packaging to digital gifts, while local partnerships and Gen Z influencers boost authenticity. “We aim for responsibility at every step, from grain to glass,” says Gibson.

Looking ahead, this generation wants meaning, discovery and a reason to raise a glass with purpose. The future of spirits is being stirred, not served straight, and the ones paying attention now are best positioned to keep the next round going.

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