We're witnessing a major cultural shift in how people approach alcohol and socializing, driven by health consciousness, generational values, and new alternatives. But while younger generations are prioritizing wellness and exploring alternatives, from sober bars to cannabis-infused drinks, Millennials’ premium wine preferences demonstrate that innovation and quality still hold appeal in traditional categories. From a business perspective, the non-alcoholic beverage market is projected to grow by 25% between 2022 and 2026 (IWSR). This moment represents a turning point for the alcohol industry, where adapting to consumer demands for mindful, diverse, and inclusive options will define its future.
Here's are some additional signals that illustrate this shift.
Dry January is growing in popularity
Movements like Dry January and Sober October are reshaping drinking culture by encouraging millions to rethink their relationship with alcohol. Participation in Dry January among U.S. adults grew from 21% in 2019 to 35% in 2022 (CGA Strategy). In 2024, 35% of Gen Z adults aged 21-24 participated in Dry January, more than double the percentage of Americans aged 55 and older. Social media amplifies these movements, with hashtags like #dryjanuary (381.5 million views) and #sobercurious (805 million views) gaining traction.
Young people are drinking less
Alcohol is becoming less popular among younger generations, especially Gen Z. In a 2023 Gallup poll, only 62% of adults under 35 reported drinking alcohol, down 10 percentage points from two decades ago. Many cite health concerns, dislike of alcohol, or a simple lack of interest. The rise of cannabis use among Gen Z, including cannabis-infused beverages, provides an alternative social lubricant.
Nightclubs on decline while sober bars on rise
In the UK, traditional nightlife is struggling, with 480 nightclubs closing between June 2020 and June 2024. Meanwhile, sober bars like Sans Bar in Austin and Hekate in New York are thriving. These venues focus on community through creative non-alcoholic beverages and events like trivia nights and sober karaoke. By catering to sober-curious individuals and those seeking alternatives to alcohol-centric spaces, sober bars are redefining nightlife and meeting the needs of younger, wellness-focused generations.
Millennials embracing premium wine
While global wine consumption is declining—evidenced by France’s per capita drop from 120 liters annually in the 1960s to just 40 liters today—Millennials are revitalizing the market. Millennials lead in average wine consumption, representing 36% of wine drinkers in 2023, and are outspending Baby Boomers, with an average of $65.80 per bottle compared to Boomers’ $36.67. Their focus on quality, diversity, and health-conscious options, such as zero-sugar and low-alcohol wines, is driving the premiumization of the industry.
Ozempic is affecting alcohol consumption
The rise of GLP-1 receptor agonists like Ozempic and Wegovy, alongside increased marijuana use, is reshaping alcohol consumption. Studies link semaglutide to a 50% lower risk of alcohol use disorder and fewer binge drinking episodes, with many users reporting a reduced interest in alcohol.
If your organization is navigating change, reach out to us at hello@tmrwandtmrw. We’d love to help you shape the future for your business.
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