For many cultures throughout the world, alcohol continues to play an important social role. Historically, the occasional tipple or a drink in moderation was considered to be an enjoyable part of an evening with friends. While for many this remains true, certain trends point towards significant changes in consumer behavior.
At first glance, these could look like trouble for the bar and hospitality industry, much of whose revenue relies on the purchase of alcoholic drinks. Yet some regard this as the next evolutionary stage in bar hospitality; one that has potential to open up significant business opportunities while meeting the needs of an increasingly diverse customer base.
What’s On the Menu
At one time, non-alcoholic drinks options might have been limited to one or two “virgin” versions of popular cocktails, or at the very least, soda water. More recently, a number of trends (most prominently health and wellness) have had significant bearing on the drinks industry.
Intriguing low or no-alcohol alternatives allow customers to partake in current flavor trends, such as the gin tea cocktail served up by the brand Sonoma Syrup. Elsewhere, health-focused alternatives include gut-friendly kombucha and kefir, as well as functional beverages including CBD, nootropic and adaptogen drinks designed to offer mood enhancement, minus the hangover.
Generational Drinking Habits
One notable factor driving these changes is demographic, and more specifically, generational distinctions. As Gen Z approaches drinking age, fewer are consuming alcohol (on average 20% less than millennials drank at the same age, according to Explorer Research), with health-awareness, cost and a preference for staying in as key motivators.
Millennials and older generations continue to enjoy stronger drinks typified by their generational category, such as wine, craft beers and cocktails. While alcohol consumption hasn’t gone away (and is unlikely to any time soon), these changes signal a marked expansion in consumer tastes, not only in terms of palette but also behaviors.
Other Factors
Besides generational differences, sustainability (such as the desire for more organic or locally-sourced ingredients) also has a significant influence, as do cultural influences like the introduction of Italian aperitivo culture. Sober bars are also becoming more popular, while products such as 0% wine, much like other “alternative products” such as plant-based milk) are now widely accepted as everyday items.
Meanwhile, campaigns such as Sober October and Dry January have encouraged greater acceptance of sobriety and moderation, alongside more mindful approaches to drinking. In turn, these habit shifts have precipitated greater demand for “sessionable” drinks and classic low-ABV options like spritzers that can be enjoyed over a long period, resulting in a mellower drinking experience, in contrast to a round of shots hastily “knocked back” at the bar.
Broadening the Palette
Beyond the binary of drinkers and non-drinkers, a number of newer categories are emerging, including sober and “sober-curious” customers, parents, designated drivers, “zebra striping” drinkers (alternating alcoholic and non-alcoholic drinks), as well as those seeking flavorful alcohol-free concoctions they might not otherwise find at home.
Rather than signalling last call for bar culture, there are opportunities here for those in hospitality. Investment in low and no-alcohol options allows venues to showcase their creative mixology skills, all while expanding the palette of available drinks options in new and innovative ways to help meet the changing tastes of an increasingly diverse range of customers.
