Dry January. The term seems to refer to the impending impact of climate change. But in reality, it is just a personal challenge and partly a social movement.
The term refers to the growing trend of stopping alcohol consumption during the first month of the year. Think of it as a four-week vacation for your liver.
It may seem like bad news for alcohol merchants, but in fact, Dry January is a way for alcohol sellers to tap into a new market.Want to understand how?
Although the Dry January trend is currently on the rise, it has existed for decades. In 1942, Finland promoted “Raitis Tammikuu” or “Sober January” as a way to ration resources.
The term took its current form in 2013 when the charity Alcohol Change UK, based in London, launched it as a personal challenge.
Since then, online searches for “Dry January” have grown exponentially, averaging 18,000 per month.
According to a survey conducted by the business intelligence company Morning Consult, 21% of Americans over 21 will try Dry January this year.
A different survey from NielsenIQ brings that number to an impressive 44% of American adults.
So, what does this mean for alcohol manufacturers and sellers?
A common complaint from those adopting the trend is finding a substitute for the ritual that accompanies drinking. That is, people still want to meet colleagues at a bar.
Thus, the rise of Dry January also brings an increase in demand for non-alcoholic beverages.
The movement has become an excellent introduction of new consumers to the non-alcoholic beverage market, which surpassed $510 million in annual domestic sales, according to Nielsen.
This represents a 31% increase in year-over-year sales.
Globally, IWSR estimates the sales of low-alcohol and non-alcoholic beverages at $13 billion annually.
That’s enough for some big alcohol brands, White Claw, Tanqueray, Guinness, and even Budweiser, to start serving non-alcoholic versions of their products.
And the data shows that this trend is unlikely to disappear anytime soon. A 2023 Gallup poll concluded that the percentage of young adults (18 to 34 years) who drink alcohol has dropped from 72% to 62% over the past two decades.
But if it’s too late to start Dry January, don’t panic. You have plenty of time to plan your Sober October.
Source: HubSpot