Article · January 1, 2024

Sober Style: The Rise of Non-Alcoholic Beverages

Explore the rise in popularity of Non-Alcoholic Beverages and how retailers can capitalize on this Gen Z preference.

There are many reasons people abstain from alcohol—pregnancy, medication interactions, or training for a marathon. But trendy “Sober October” and “Dry January” have evolved for many to an all-the-time lifestyle, being called the “sober-curious movement,” and Gen Z. We take a look at how this movement is driving the explosion of non-alcoholic beverages in dry bars, booze-free spirits, mocktails, and more.

Why Gen Z Is Choosing Not to DrinkWith alcohol forming the foundation of so many social events, even work functions, it’s sometimes difficult for older generations, including some older millennials, to understand the shift. But the reasons stem from the lived experience of a generation born into war, who have already survived a great recession and a pandemic. They are, as the BBC explains, “clued in and risk-averse.” This generation is far more conscious of their health, more interested in natural and homeopathic remedies to stay healthy, and far more attuned to their mental health than previous generations.

Alcohol, for many of them, simply isn’t a good fit. The StatsWhile American consumption of alcohol peaked in the mid-70s with 71% of Gallup survey respondents reporting that they imbibed, the numbers are declining—to the lowest rates since the 1940s. And younger generations are driving those numbers.

A Science News study from 2020 reported that “Between 2002 and 2018, the number of adults aged 18-22 in the U.S. who abstained from alcohol increased from 20% to 28% for college students and from about 24% to 30% for people not in school, say researchers at the University of Michigan and Texas State University. And alcohol abuse among both groups decreased by roughly half.” - Researchers at the University of Michigan and Texas State University Europe Is Following SuitAmericans aren’t alone – Michael Segalov writes in The Guardian that between 2002 and 2019, the proportion of 16- to 24-year-olds in England who reported monthly drinking fell from 67% to 41%.European Gen Z and young millennials are also drinking less.

In a YPulse survey, 30% of young Americans 21+ and 23% of young Europeans report that they never drink. These same down trends are evident across other risky behaviors, including unprotected sex, driving, and crime.Gen Z Still Wants to Have FunJust because they aren’t drinking and especially not binge drinking doesn’t mean that this generation doesn’t want to have rich social experiences in which drinks play a role. They just want those drinks to be alcohol-free.

And they don’t just want “virgin” versions of existing cocktails, but drinks created without reliance on alcohol as an ingredient. This has resulted in the projected growth of low- and no-alcohol beverage sales by 31 percent in 2024. Brands Are Mixing SuccessThe sober-curious trend is offering brands, bars, and restaurants a huge opportunity to cater to a generation that is growing in wealth and influence.

While it represents a significant shift for the bar and restaurant industry, adding unique and interesting non-alcoholic options to the menu can attract an entirely new demographic to the establishment. Here are some brands worth noting:SeedlipThe founder of Seedlip, Ben Branson, was fascinated with the recipes he discovered from a 1600s physician John French, who authored the book, The Art of Distillation. In it, French described non-alcoholic remedies.

Fast forward a few centuries, and the sentiment is resonating with a new generation seeking healthy options and abstaining from alcohol.Seedlip zero-proof cocktails was born from an experience Branson had ordering a non-alcoholic cocktail from an upscale London restaurant that was “a pink, sugary drink that neither paired with the meal, nor the atmosphere.”Little SaintsLittle Saints founder, Megan Klein, was in the plant-based wellness space for nearly a decade. But she had an a-ha moment when she realized there was an opportunity in the vegan non-alcoholic drinks space. Her products contain smell compounds and CBD to give people an experience of relaxation and uplift.She shares her perspective on why the sober-curious movement is picking up steam.

“What’s driving it is the anxiety economy. The anxiety economy was already there, pre-pandemic. We were all using our meditation apps; we were using squeeze balls.

And we were trying different ways to address our anxiety. But it wasn’t until the pandemic that our drinking habits really became clear. You know, everyone knew that they were drinking too much, but I don’t think that everyone made the connection between, ‘Oh, I am drinking too much, and that is actually causing me more anxiety.’” Read her full interview at Marketplace.