Effects of plasma nonuniformity on zero frequency zonal structure (ZFZS) excitation by drift Alfven wave (DAW) instabilities in toroidal plasmas are investigated using nonlinear gyrokinetic theory. The governing equations describing nonlinear interactions among ZFZS and DAWs are derived, with the contribution of DAWs self-beating and radial modulation accounted for on the same footing. The obtained equations are then used to derive the nonlinear dispersion relation, which is then applied to investigate ZFZS generation in several scenarios. In particular, it is found that, the condition for zonal flow excitation by kinetic ballooning mode (KBM) could be sensitive to plasma parameters, and more detailed investigation is needed to understand KBM nonlinear saturation, crucial for bulk plasma transport in future reactors.