What many thought would be an inevitability - people who are forced to stay home would start hitting the bottle more than usual - has actually turned out to be just the opposite. People are certainly buying more booze to stock themselves up at home, but this doesn't offset the "gaping hole" from restaurants and bars, according to Bloomberg.
In fact, global alcohol consumption isn't expected to hit pre-Covid levels until 2024.
Recall, we wrote in April 2019 that Gen Z would likely ditch alcohol and become the "ultimate" marijuana consuming generation. The business of booze was already dealing with these types of headwinds heading into the pandemic. There is concern in the industry that even post-pandemic, Americans will continue to cut back on their alcohol consumption.
Mark Meek, Chief Executive Officer of IWSR Drinks Market Analysis, said: "The pandemic is set to cause a deeper and more long-lasting after-effect to the global drinks industry than anything we've experienced before. In many ways, 2019 was perhaps the last 'normal' year for the drinks industry."
The U.S. craft beer boom that has driven the industry for the last decade has given way to hard seltzers like White Claw. And non-alcoholic beer continues to sell well. Non-alcoholic beer is forecasted to grow by 33% this year despite an overall 3.7% drop in the beer category. This is due to brewers putting more time and focus into N/A drinks that retain the qualities of regular beers.