Rise of boozeless bars and the sober curious movement

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  Quantumrun Foresight
• April 21, 2022

Insight summary

The rise of boozeless bars is reshaping social norms, driven by the sober movement among the younger generations. This trend can improve public health through reduced alcohol-related diseases and open new market opportunities, such as cannabis-derived substances. However, it also brings challenges like potential job losses in alcohol production and legal complexities.

Boozeless bars context

Alcohol-free or "boozeless bars" are becoming increasingly prevalent worldwide as they provide healthier outlets for individuals who wish to avoid alcohol or those seeking to reduce their levels of alcohol consumption. A temperance bar (sometimes referred to as an alcohol-free bar, sober bar, or dry bar) is a pub that does not offer alcoholic drinks. These bars serve non-alcoholic beverages such as mocktails, non-alcoholic beer, low-alcohol beer, non-alcoholic wine, kombuchas, botanical tinctures, juice, soft drinks, and water. An alcohol-free bar can be positioned in a commercial facility or a non-commercial environment or event, such as a wedding. 

"Boozeless bars" are not a new concept, having first opened in the 19th century as part of that era's temperance movement. Several temperance bars were created in collaboration with various temperance organizations during the late 19th and early 20th century, including during Prohibition in the US. Initially, these venues favored a modest attitude to life, particularly regarding alcohol usage. Later, they changed their focus to abstinence from alcohol. These bars frequently required clients to sign a temperance pledge, pledging to refrain from intoxicating liquors; however, today's surge of alcohol-free establishments attracts both teetotalers and drinkers seeking an alcohol-free setting.

The growing popularity of alcohol-free bars is being spurred by millennials and Gen Z seeking to drink less alcohol, with both generations acknowledging how detrimental alcohol can be to a person's health. While earlier temperance bars catered to teetotalers and alcoholics in recovery, newer venues welcome their traditional sober clientele and the curious.

Disruptive impact

In addition to the increasing interest shown by millennials and Gen Z in health and wellness, their preference for low and non-alcoholic beverages is driving the modern temperance market. According to Nielson's research, 66 percent of millennials have tried to reduce their alcohol intake. The trend is anticipated to continue with Gen Z. For example, traditional wellness events during the year, such as "Dry January" and "Sober October," have grown in popularity, and in the process, has normalized and created an increasingly positive public culture around sobriety, encapsulated in the "Mindful Drinking Movement."

In the US, declining beer sales have led to the alcohol industry introducing additional low- and non-alcoholic beverage choices, such as Heineken's 0.0 non-alcoholic beer (launched in 2017) or Gordon's ultra-low-alcohol canned gin and tonic. Furthermore, in recent years, it has become significantly easier to obtain alcohol-free drinks in event venues and urban pubs across the US.

Non-alcoholic beverages are expected to grow in popularity, even in non-alcohol-free settings. High-end restaurants increasingly provide a non-alcoholic pairing option alongside a standard wine or cocktail pairing on their tasting menus. Mixologists and beverage directors are using the temperance trend as an opportunity to make intriguing beverages without relying on the ballast of traditional spirits. From a business owner's perspective, alcohol-free bars may provide higher profit margins if they can convince clients to pay a premium for non-alcoholic craftsmanship. Further, non-alcoholic establishments are not required to pay liquor license fees or submit lengthy license applications. 

Implications of boozeless bars

Wider implications of alcohol-free bars may include: 

• Decreased incidence of domestic abuse, with research highlighting the link between domestic violence incidents and alcohol consumption, leading to a safer home environment and potential reduction in law enforcement and healthcare costs.
• Lower incidence of alcohol-related diseases, such as liver cirrhosis and several types of cancer, leading to improved public health and reduced burden on healthcare systems.
• Fewer drunk driving accidents and physical confrontations in bars and venues, leading to safer roads and public spaces, and potentially lowering insurance premiums and legal expenses.
• Increased usage of cannabis and cannabis-derived substances, leading to new market opportunities and potential tax revenue streams for governments.
• A shift in consumer preferences towards non-alcoholic beverages, leading to the creation of new business models and opportunities for entrepreneurs in the food and beverage industry.
• Enhanced community engagement and social interaction in boozeless bars, leading to stronger social bonds and potentially reducing mental health issues related to isolation.
• Potential job losses in traditional bars and alcohol production industries, leading to economic challenges in regions heavily dependent on these sectors.
• Possible increase in illegal or unregulated production of alcoholic beverages, leading to public health risks and challenges in law enforcement.
• A shift in government regulations to accommodate boozeless bars and non-alcoholic products, leading to potential legal complexities and compliance costs for businesses.

Questions to consider

• Do you think non-alcoholic drinks may eventually become more popular than those containing alcohol?
• Do you think it's possible that a more equitable and safer nightlife environment can be created for women by eliminating the consumption of alcoholic beverages?