A Shift In Drinking Culture: Concept for a 0% Alcohol Bar

Hannah Shemilt
Jan 13
10 min read

Updated: Jan 15

My Idea for a bar that only sells 0% Alcohol in Sheffield

I developed Source and a business plan as part of a University module focused on entrepreneurship and consumer trends. Originally written as a university assignment 2022, it’s a blend of research and creativity grounded in consumer insights.

Once I dug into the research, it was clear there was a massive unmet demand. People of all generations are rethinking their drinking habits, with the growing ‘moderation trend’ sparking a surge in demand for no-alcohol options across the UK. But with the market growing and no 0% alcohol bars in Sheffield, why wasn’t anyone biting?

The consumer insights I uncovered turned out to be spot-on, and I have found real examples of brand strategies connecting with people. While I didn’t launch Source myself, seeing other businesses run with similar ideas is exciting—proof that my tilt on messaging and vision would likely resonate with consumers.

Market Analysis

Retail Channels

The ‘low and non-alcoholic drinks’ market is also proving enormous growth, boasting £255 million in volume sales and is expected to grow annually by 13% next year (Statista, 2022). In 2022, brick-and-mortar stores accounted for 85% of no- and low-alcohol sales. However, e-commerce is rapidly gaining traction as a channel, particularly among specialist retailers. This shift indicates growing consumer interest in accessible, niche options that cater to their mindful drinking preferences.

Interestingly, traditional club environments—often associated with alcohol consumption—are struggling to align with the values of Gen Z and Millennials. Many young consumers find clubs noisy or boring, and incompatible with their health-conscious lifestyles. In contrast, bars that offer experiential, community-driven experiences resonate strongly with Gen Z, who are still keen on forging meaningful social connections.

Who's Driving the sales?

The UK’s largest study on drinking behaviours revealed that 16-to-25-year-olds are leading the charge toward sobriety. 26% of this age group identified as teetotal, with many others adopting “moderation” as their primary approach.

Interestingly, It’s not just the younger generations. People aged 24 and older exhibit similar consumption patterns across age groups when it comes to no- and low-alcohol products. The most significant segment within this demographic consists of "substituters"—individuals who alternate between alcoholic and non-alcoholic options based on the occasion.

Attitude towards drinking

Cost Considerations

The perception of no and low-alcohol drinks as overpriced poses a potential challenge to market growth, especially during economic downturns. However, paradoxically, Mintel reports that many Gen Z consumers choose these options, or energy drinks because they are more affordable than traditional alcoholic beverages. Nearly a third of young respondents cited cost savings as a reason for their shift toward alcohol-free choices. Well-being Matters

Well-being is a powerful motivator for the sober curious. Two-thirds of 18-to-24-year-olds expressed concerns about the emotional impact of alcohol. For many, nutrition and health benefits are central to their decision to drink less or abstain entirely. Gen Z, in particular, shows a preference for sophisticated fruit juices as an alternative to alcoholic beverages, valuing their health benefits and creative flavours.

Consumer Insights: Understanding a Sober Curious Movement

The "Sober Curious" movement is an emerging consumer trend emphasising health and mindful drinking and is more than a fleeting fad. Spearheaded by Millennials and Gen Z, it reflects a growing desire to redefine what it means to celebrate and socialise.

This shift is reflected in bold moves by traditional alcohol brands introducing alcohol-free lines, such as Guinness 0%, and the rise of startups like Seedlip reshaping the industry with innovative, ‘feel good’ options.

Driven by Popular Culture

Cultural icons like Zendaya and Jack Harlow openly embracing sobriety resonate deeply with their audiences, challenging outdated social norms that glorify heavy drinking. Instead, we see campaigns celebrating balance, self-care, and the freedom to say no. Social media and influencer partnerships have played a pivotal role in amplifying this message, showcasing mindful drinking as aspirational rather than restrictive.

Communities Built Through Tribal Marketing

The movement toward alcohol moderation and abstinence is fostering a sense of powerful community online. One standout initiative I took notes from was the Sober Girl Society (SGS). Founded in 2018, they want to prove that life can be fun and fulfilling without alcohol.

Their success lies in 'Tribal Marketing', a strategy focused on building a community of like-minded individuals around shared values. SGS unites women through sobriety and events, fostering a sense of belonging for those who might otherwise feel isolated. By using empowering language like "supportive sisterhood" and "non-judgmental," SGS invites women into an inclusive, welcoming tribe.

The sober, curious movement represents a deeper cultural shift toward health-conscious living and mindful consumption:

Health as a Priority
Flexibility Over Absolutism
Social Inclusion

Market Opportunity

The UK's no- and low-alcohol drinks market is expanding at a rapid pace. Young adults are increasingly teetotal, while moderation is a growing trend across all age groups. Additionally, the rise of e-commerce presents a unique opportunity to scale the business beyond Sheffield.

The "Sober Curious" online community demonstrates that community is no longer bound by geography but by shared values and beliefs, offering a chance to connect with a broader audience nationally. Notably, 16-to-25-year-olds are the most likely to abstain from alcohol entirely. With Sheffield hosting a student population 60,000 on average in this age range, the city offers a fresh wave of potential customers annually, creating a dynamic and evolving group of consumers.

However, there are challenges to address, such as the perception of overpriced products and the cost-of-living crisis.

Target Market Segments

Here are the segments I have chosen to target. I have segmented on psychographic segmentation (Lifestyle, attitudes, and values) with elements of behavioral segmentation (Usage patterns, purchasing behavior, and loyalty)

Segment Name	Who are they	Why target
Sober Curious Explorers (Primary Market)	Sober Curious Explorers are experimenting with reduced alcohol consumption without full commitment to abstinence. They are urban dwellers, often aged 25-45, seeking social inclusion.	This segment is community driven and follow sober curious profiles online (Like Sober Girl Society). Their curiosity about alternatives aligns perfectly with the bar's role as a showcase for innovative, no-alcohol mixology.
Substituters (Secondary Market)	Substitutes switch between full-strength and no/low alcohol products, depending on the occasion. They represent a diverse demographic evenly spread across age groups above 24. They prioritise variety and flexibility in their choices. They aren't considering being sober but want moderation.	Substitutors are the largest consumer group in the no/low alcohol market, making them a critical audience for establishing a customer base. Their preference for moderation aligns with our product offerings, especially alcohol-free cocktails and curated menu options as an experience.
E-Commerce Drink Buyers (Secondary Market)	E-Commerce Drink Buyers are mostly 25-40, using online platforms for convenience and product discovery. They represent a growing market due to the rise of online retail and no-alcohol-focused platforms.	While the brick-and-mortar bar serves as a storefront, this segment allows the business to scale online. They provide an opportunity to expand the bar's reach nationally by building a reputable online cocktail menu brand.

Marketing

The Concept and Marketing Plan for Source

The name "Source" perfectly captures the essence of this venture: to be a source of energy and community, a place where people connect and recharge. We will start with a brick and mortar bar, a space that embodies the vibe of Source.

“We're all about creating a space where you can be yourself, connect with awesome people, and enjoy incredible non-alcoholic cocktails. Whether you're team sober-curious, a seasoned non-drinker, or just fancy trying something new, Source is your place.”

Simultaneously, we’ll craft a compelling online presence as a go-to for cocktail enthusiasts and bartenders. It will be a site with unique non-alcoholic cocktail recipes, expert tips, and the latest discoveries, a "MOB" style hub tailored for the sober-curious crowd.

This free online platform will start to position Source as a thought leader in the alcohol-free cocktail space and generate excitement and awareness around the broader movement.

Creating Connection and Buzz

Our marketing strategy is about building a brand that people connect with. We'll harness the power of first-mover advantage to generate buzz and capture the attention of earned media. Sheffield's first dedicated alcohol-free bar will turn heads and spark conversations. We'll embrace the disruptive nature of Source, using those initial sparks of curiosity and even scepticism to build online engagement.

Building a Lasting Connection

But we then want to sustain the novelty and build a sustainable brand. That's why we'll be actively listening to our community, co-creating the Source experience alongside our customers. We'll encourage them to share their stories, needs, and vision for what Source can be. This collaborative approach will foster a deep sense of belonging and allow our brand to evolve organically alongside the sober-curious movement.

The Foundation of Trust

Authenticity will be our guiding star. We'll steer clear of performative branding and focus on genuine engagement with the sober-curious community. We'll invest in their interests, champion their values, and build a brand that resonates with their desire for connection and meaningful experiences. This authentic approach will foster trust and loyalty, especially among Gen Z and Millennials, who value transparency and social responsibility.

Source's 7P’s of Marketing

The marketing strategy was developed using the 7Ps framework to ensure a comprehensive approach.

Product

Core Benefit. A welcoming space to avoid alcohol, socialise, relax, and connect with others in a vibrant and authentic community.
Actual Product. The menu of seasonal non-alcoholic cocktails. Using fresh produce forage from around Sheffield and prepared by mixologists who deeply understand how ingredients interact, create flavours and benefits of ingredients. Friendly and knowledgeable staff providing excellent service. This aligns with the audience's health-conscious mindset and provides a unique selling point. Unique decor and ambience reflecting the brand's ethos (e.g., sustainable materials, local art). Social events like quiz nights, live music, or themed evenings.
Augmented Product. Elevated experiential offerings, like immersive events, themed nights, or Instagrammable decor, are appealing to all generations but particularly resonate with Gen Zers. Locally sourced ingredients. Loyalty programmes or discounts for regular customers. Community involvement includes hosting fundraisers or partnering with local artisans and businesses. Online presence, including event promotion, drink pre-orders, and engaging social media.

People

Our brand messaging will emphasise that being sober isn’t required to join our team. Instead, we aim to foster a safe, inclusive environment where the sober-curious feel welcome, and exceptional, great-tasting drinks are at the heart of what we offer.

Creating a genuine sense of community from a bar in Sheffield is a bold ambition and needs dedicated talent. To achieve this, hiring a passionate and driven events coordinator will be essential for organising engaging experiences that connect with our audience.

The menu will be another cornerstone of our brand. To craft a truly unique offering, we’ll collaborate with a herbologist or botanical expert to incorporate the nutritional value of plants, alongside a mixologist who is interested in the sober-curious movement. Together, they’ll design an experiential menu that elevates taste and adds perceived value, such as foraged ingredients that bring a deeper connection to nature and locality.

While this approach involves significant costs, it represents an essential investment in establishing a reputable, innovative brand in the 0% alcohol space. By prioritising quality, authenticity, and creativity, we can create lasting brand awareness and loyalty.

Place

Data from StreetCheck, shows that Sheffield's Kelham Island is home to a high concentration of target demographic 25–44-year-olds, making it the ideal location for Gen Z students to travel to for the ‘experential’ value, but, around student settlers and a demographic who are interested in finding new community.

Price: Adding value over undercutting with price

I wanted to create a drinks menu based on behavioural segmentation, and value over cheapness top of mind to signify sources brand positioning:

Refillable tea & coffee for price-conscious behaviour.
0% beer, 0% spirits, and mixers for 'Subtituters' wanting alternatives to traditional alcoholic beverages and trusting bigger-named alcohol brands.
Cocktails for 'Sober Curious Explorers' and segments seeking sophisticated and curated drinking experiences.

Cocktails will play a key role in adding perceived value to no-alcohol drinks through seasonal menus. Market research from Mintel presents an opportunity to add perceived value to low and no-alcohol drinks by developing flavours and exploring added health and mood benefits.

Promotion

A pre-launch campaign on social media, including collaborations with influencers in the health and wellness space.

SEO-optimized blog posts with cocktail recipes and wellness tips. The strategy to create and share high-value content to establish Source as a thought leader in the sober, curious space.

Hosting Events with sober, curious online communities and Providing Resources.

Physical Evidence

The tangible and intangible elements that reinforce Source Bar's identity.

Bar Design

A warm, inviting, and eco-conscious interior with comfortable seating and distinctive branding.

Menus

Attractive, well-designed menus highlighting locally sourced ingredients and unique drink offerings.

Merchandise

Branded items like reusable cups, coasters, or t-shirts reinforce brand identity.

Social Proof

Positive online reviews, active engagement on social media, and photos of events.

Process

The behind-the-scenes operations ensure a smooth customer experience.

Efficient, friendly service. Sustainability Processes. Transparency in recycling, energy efficiency, and efforts for waste reduction.

Event Management

As a big part of Sources brand, well-planned and executed events to ensure a seamless experience to build customer relationships.

Final thoughts

I originally wrote this in 2022, but the industry has since evolved. Bar options, such as draught versions of popular no-alcohol beer brands, are becoming more prominent. Meanwhile, niches like no-alcohol spirits, agave alternatives, and alcohol-free cocktails are gaining momentum. Specialist no-alcohol bars are also emerging as key players, offering curated experiences that highlight the creativity and inclusivity of this market.

Examples I’ve found of businesses embracing the changing market:

Startup’s

In 2023, new online commerce platforms emerged, showcasing innovative approaches to the no-alcohol market. One standout example is a bar in Leeds branded as a "functional drinks club." This bar offers unique experiences, such as kombucha tasting sessions that emphasise health and gut wellness—a growing trend among health-conscious consumers. Their delivery service for non-alcoholic craft beer and a gut health test highlights how businesses can align with modern wellness priorities and leverage psychographic segmentation to appeal to consumers' lifestyles, attitudes, and values.

Big players and marketing

Major industry players are also making waves in the sober, curious space. Asahi, for instance, launched SUMADORI-BAR SHIBUYA, a concept bar that promotes a "smart drinking" culture. This space caters to both drinkers and non-drinkers, creating an inclusive environment that reflects the values of mindful consumption.The bar’s marketing strategy focuses on encouraging responsible drinking and fostering a culture where everyone feels welcome.

As individuals become more conscious of their drinking habits and explore the benefits of reducing or eliminating alcohol, the demand for non-alcoholic beverages and experiences will continue to rise. This presents a significant opportunity for brands and individuals to innovate and create offerings.

Sources

Marketing and Creative Direction