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What’s Driving Non-Alcoholic Beverage Trends?
Canada has seen an enormous spike in interest and sales of non-alcoholic (NA) beverages in bars, also known as mocktails. Many bars across the provinces now offer NA drink specials and non-alcoholic or low-ABV wine, champagne, and beer. According to Nielsen IQ, NA sales surged by 20% in the United States last year. Statista predicts that NA beverage sales will grow by up to 8.4% in Canada next year. Pair this with a downward trend in overall Canadian sales of alcohol, down 2.8% from last year, and you find the NA beverage market poised for incredible growth.
Many factors are driving the interest in mocktails. Key among them are the recent updates to health guidelines surrounding alcohol from the WHO and the Canadian government. Another driver involves Gen Z, which has different drinking habits than older demographics, preferring moderation and “mindful drinking.”
Restaurants and food businesses are well-positioned to profit from this phenomenon. No liquor license is necessary to serve NA beverages; the only restriction is your mixologist’s creativity. The restaurant industry can capitalize on this trend by offering “mocktails” and other alcohol-free drinks on menus.
Updated Health Risk Guidance
Earlier this year, the Canadian Centre on Substance Use and Addiction (CCSA) released updated guidance on their report “Canada’s Low-Risk Alcohol Drinking Guidelines” (LRDGs) issued in 2011. Backed by research, the guidelines state that most people should drink two or fewer alcoholic beverages per week to avoid the health risks associated with drinking, such as cancer.
The World Health Organization (WHO) goes one step further by stating in their most recent guidelines that “no level of alcohol consumption is safe for our health” and “it is the alcohol that causes harm, not the beverage.”
Whether Canadians take this recent guidance to heart remains to be seen. But, these reports have fueled the NA trend already in progress.
Gen Z and Mocktail Bars
Even before the pandemic, interest in high-quality, tasty mocktails at bars was gaining ground. So-called “dry” bars began to open and to cater to the “sober curious.” Manufacturers and mixologists dedicated themselves to creating better-tasting NA “spirits” to meet the demand. Nielsen IQ reports that 72 NA SKUs were added to the US market in the 2021 fiscal year, including 27 NA beers, 17 wines, and 18 spirits.
Counterintuitively, NA beverage sales are not necessarily driven by sobriety. Instead, the trend may be bolstered by a desire in Gen Z consumers to drink less but still enjoy a night out. These consumers are interested in the health benefits of consuming low or no-calorie mocktails without sacrificing flavour. Athletic Brewing, which offers NA beers targeted at runners and athletes, reported a 3600% increase in revenue from its launch in 2018 to now.
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How to Tap into the Trend
There are a few essential points that bars, restaurants, and other food businesses should keep in mind to cash in on the mocktail bar trend.
Flavour is key
Non-alcoholic consumers are no longer happy to drink juice or low-quality NA beers. Seek out and taste as many NA beers, wines, and spirits as possible before deciding on your offerings.
Presentation is paramount
Give the same care and attention to crafting mocktails for your bar as traditional cocktails. Consider purchasing beautiful barware glasses from Browne or Libbey. And don’t neglect ice! Craft ice from machines by Scotsmen, Hoshizaki or Ice-o-matic adds to the presentation.
Dedicated menu or specials
Tapping into the “mindful drinking” market means treating these consumers respectfully. Adding a dedicated NA menu, menu section, or NA drink specials can help these patrons feel seen and encourage curious customers outside the demographic to experiment with non-alcoholic beverages.
Seasonal offerings
As cocktail offerings differ from season to season, don’t neglect to offer festive holiday mocktails in your bar or restaurant. Additionally, bars and restaurants can tap into post-holiday moderation by creating “dry January” specials.
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Where NA is Headed
Non-alcoholic beverages are progressing similarly to the past decade’s vegan and vegetarian food market growth. And while the NA market share is still dwarfed by traditional alcohol, the sector’s explosive growth means that there’s a lot of opportunity for savvy restaurateurs. Global Market Insights predicts that the NA market will grow by $30 billion worldwide by 2025 (up from the current market share of $395 million!).
Updated health guidelines and generational preferences are ensuring that NA beverages are here to stay. Is your bar or restaurant ready to meet the surging demand for mocktails? Your local RH rep can advise you on stocking your business with appropriate glassware, ice machines, and other bar supplies. Get in touch today.