In this article, we are going to discuss the 20 states with the most bars per capita in the US. You can skip our detailed analysis of the global bars, pubs, and nightclubs market, the impact of Covid-19 on the American bars and pubs industry, and the NA beer trend taking over the US on-premise, and go directly to the 5 States with the Most Bars per Capita in the US.
Retail establishments that serve alcohol date back to ancient Greece, where men would gather in the evenings for food, drinks, music, and theatrical entertainment. In ancient Rome, taverns were being built alongside busy roads and trade routes to cater to travelers and soldiers. In England, up through the 11th century, public houses (or pubs) became the designated places to hold personal or business meetings. The British loved their bars so much that they enacted laws during the 1600s, making it illegal to not have a pub in town. Even during the colonial days of America, taverns were often built before churches.
READ ALSO: 20 Best-Selling Wine Brands in the US and Top 20 Beer Brands in the World.
The Global Bars, Pubs, and Nightclubs Market:
As we mentioned in our article – 20 Cities with the Most Bars per Capita in the World – the global bars, pubs, and nightclubs market was valued at $95.33 billion in 2022 and is projected to reach $124.57 billion by 2030, growing at a CAGR of 3.4% during the forecast period.
A major cause of this is the increased urbanization in developed countries, leading to the development of more bars and other related establishments. Moreover, infrastructure development, rising global disposable income, the rapid resurgence of tourism post-Covid, a strong revival of cocktail culture, and the adaptation of social media and digital marketing are also among the significant growth drivers for the global nightlife industry.
According to the U.S. Bureau of Labor Statistics, an estimated 711,140 bartenders were working in the country last year (up from 514,000 in 2021), earning a mean annual wage of $37,090 (compared to $30,340 in 2021).
The Impact of Covid-19 on the Bars and Pubs Industry:
Bars and pubs are inherently social spots, so the social-distancing rules in the pandemic obviously had devastating effects on the industry. After the closure of bars, more and more people started drinking at home, leading to a rise in the off-premises sales of alcohol.
According to data from the National Institute of Health, lockdowns and social distancing between March to September 2020 led to a 27% decrease in on-premises alcohol sales and a 20% increase in off-premises sales, suggesting a shift from bar consumption to home drinking.
However, the industry witnessed a sharp revival after the restrictions were finally lifted and people rushed back to their favorite taverns. According to a report by Provi, a B2B e-commerce marketplace for the beverage industry, the on-premise sales of alcohol witnessed a YoY increase of 350% for the 12 months ending December 2021.
NA Beer Takes Over the US On-Premise:
No-alcohol beers may be drops in the proverbial bucket of total worldwide beer sales, but the market continues to explode with options as the category continues to expand. As stated in our article – 15 Best Selling Non Alcoholic Beers in the US – the global NA beer market was valued at $22 billion in 2022 and is anticipated to grow to $40 billion by 2032, with a CAGR of 5.5% during the forecast period.
Beer with zero alcohol has become increasingly popular as consumers become more health-aware, and this trend is now also taking over the US on-premise businesses. A report by CGA Strategy has revealed that the overall OP beer sales by value in the 12 months to mid-May 2024 were down 2.9% YoY, while the no-alcohol beer segment achieved a staggering growth of 33.7%. NA beer has also improved in accessibility, with its total distribution points jumping in the US by 11.9%. Additionally, the average selling prices in the zero-alcohol segment also increased by 5.2%, well ahead of the all-beer increase of 3%.
In the past few years, brands such as Athletic, WellBeing, and Partake – all dedicated exclusively to non-alcoholic beer – have come onto the scene, while several brewing giants have also kept up with the trend and introduced NA options. One industry veteran that has especially made remarkable progress in the field is Anheuser-Busch InBev SA/NV (NYSE:BUD).
In 2020, the beer behemoth introduced Bud Zero (the non-alcoholic version of its uber-popular King of Beers) in the US, and since then, it has grown to become one of the Most Popular Non-Alcoholic Beer Brands in the world. In fact, Bud Zero ended up being the only brew available at the stadiums during the FIFA World Cup in 2022, as the sale of alcohol is strictly controlled in Qatar. Anheuser-Busch InBev SA/NV (NYSE:BUD) also managed to score a sponsorship for the recently held Olympic Games, making it the first beer company ever to sponsor the grand event. The IOC specifically highlighted Corona Cero – the non-alcoholic version of the global best-seller Corona – as the beer of choice for the partnership, which will stretch from the Paris 2024 Summer Games to the Los Angeles 2028 Summer Games. Notably, the company has also partnered with brands such as Roland Garros, NBA, NFL, and even UFC to market its core beers, reflecting its broad marketing capabilities. AB InBev has set the ambitious goal of ensuring that low- or no-alcohol beer products make up at least 20% of its global beer volume by 2025.
Anheuser-Busch maintained its dominance as the Largest Beer Company in the World in 2023, with a global production volume of 585 million hectoliters and a revenue of $59.38 billion, an increase of over 2.7% from the previous year. This revenue increase was despite the company facing some headwinds in the American market last year after the recent controversy regarding its best-selling brand Bud Light, which resulted in the iconic brand losing its crown as the Top-Selling Beer in America after nearly two decades.
Anheuser-Busch InBev SA/NV (NYSE:BUD) witnessed a slight decrease in volume during the first half of 2024, as it fell by 0.7% to 285.8 million hectoliters. The company’s volume growth in the Middle Americas, South America, Europe, and Africa regions was primarily offset by performance in Argentina and China. However, the Bud Light brewer’s revenue grew 2.7% to $29.9 billion but still fell short of analysts’ estimates. Meanwhile, normalized EBITDA beat Wall Street expectations and rose 7.8% to $10.3 billion.
Anheuser-Busch is a global company with a portfolio of over 500 brands and a strong presence in around 150 markets around the world. The company benefits from its ability to use its scale to expand globally and although its growth has recently remained flat in the US, the Budweiser-maker is growing aggressively in countries like Colombia, Mexico, and Brazil.
Michael Doukeris, the CEO of Anheuser-Busch InBev SA/NV (NYSE:BUD), stated the following in the company’s Q2 2024 earnings call transcript:
“Our global momentum continued this quarter with revenue growth in more than 65% of our markets. Bottom line increases in four of our five operating regions and margin expansion in all five regions. Our scale and diverse geographic footprint has been driving consistent results and has us well placed to deliver superior long-term value creation.”
While we acknowledge the potential of BUD as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than NVDA but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
With that said, here are the US States with the Most Bars per Capita.
A bartender shaking a cocktail with various bottles of flavored tequilas in the backdrop, illustrating the company’s alcoholic beverages.
Methodology:
To collect data for this article, we have referred to VinePair, looking for the States with the Most Bars per Capita in America. The following states have been ranked by their total number of bars per 100,000 people in 2019, the most recent year for which the data is available.
At Insider Monkey we are obsessed with the stocks that hedge funds pile into. The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).
20. Ohio
Bars per 100,000 People: 15.26
The average Ohioan drank 689 alcoholic drinks in 2021, an 11% decrease from 776 the previous year, according to a survey by DrugAbuse.com. The city of Columbus is the rising star of the Midwest, bustling with young people, new businesses, and a dynamic nightlife.
19. Minnesota
Bars per 100,000 People: 15.34
Minnesotans have been known to raise a pint or two. Recent data from the CDC found that over 1,100 Minnesotans died in 2021 as a result of binge drinking. That’s more than homicide and suicide combined.
18. Vermont
Bars per 100,000 People: 16.35
Vermont is home to a thriving spirits industry, producing a wide variety of products from vodka and maple liqueurs to gin and rye whiskey. The Green Mountain State also boasts over 60 breweries and some of the best-rated craft beers in the world.
17. Louisiana
Bars per 100,000 People: 16.93
In New Orleans, the party hasn’t actually started in a long time simply because the party never ends and the bars never close. The city is home to a large number of 24/7 fine drinking establishments.
16. West Virginia
Bars per 100,000 People: 16.96
West Virginia, with its less-restrictive alcohol laws, is also included among the US States with the Highest Beer Consumption per Capita. Liquor was only sold in state-owned stores in the Mountain State before 1990, after which the state auctioned off permits to private businesses to legally sell alcohol.
15. New York
Bars per 100,000 People: 17.42
The Big Apple has been historically known to love its bars and bartenders, with the city giving birth to more than a few classics, like the Long Island Iced Tea. NYC is also home to the Best Bar in North America, named Double Chicken Please, according to ‘The World’s 50 Best Bars’ list in 2023.
With 3,389 bars in 2019, New York is the state with the most bars in America.
14. Pennsylvania
Bars per 100,000 People: 18.32
Pennsylvania witnessed a record $3.017 billion in wine and spirits sales in the 2021-22 financial year, the first time sales topped $3 billion. The city of Pittsburgh is known for its vibrant, hardworking, and innovative drinking culture and has been home to saloons, speakeasies, and creative cocktail-making since the late 1800s.
13. Idaho
Bars per 100,000 People: 19.7
Although Idaho ranks among the States that Drink the Least Alcohol per Capita, Idahoans set a new record for the highest spending on liquor in the last financial year, which ended on June 30th 2023. The state’s residents spend just under $320 million on liquor during the year, with Tito’s vodka dominating the market in the Gem State.
12. Alaska
Bars per 100,000 People: 19.96
One of the Most Alcoholic States in the US, Alaska has a reputation as a hard-drinking state with simple tastes. However, the state’s alcohol preferences are changing and it’s drinking less beer, more liquor, and more wine. It’s also drinking less mainstream beer and more craft beer.
11. Oregon
Bars per 100,000 People: 20.34
Despite its high alcohol consumption, Oregon has an extensive history of laws regulating the sale and consumption of alcohol, with also some extended periods of prohibition. The city of Portland, famous for its nationally acclaimed karaoke spots and thriving nightlife, was included among the Drunkest Cities in America in 2023.
10. Nevada
Bars per 100,000 People: 21.46
Nevada is one of the U.S. states with the laxest laws related to alcohol, and many alcoholic brands, wholesalers, and suppliers use the Silver State to start and grow their brand presence. In Las Vegas, the bars aren’t just on any old street or in any specific neighborhood, they are right in the heart of all the action. Sin City, with around 12.8 bars per 10,000 households, is one of the Bar Capitals of the USA.
9. Rhode Island
Bars per 100,000 People: 21.62
Although small in size, the state of Rhode Island is quite big on alcohol. From Providence to Newport, the local mixologists are coming up with creative concoctions and taking risks with unexpected flavors and techniques.
8. Illinois
Bars per 100,000 People: 22.03
Bars and taverns have been an integral part of Chicago’s culture for over a century now. The Windy City, famous for its sultry clubs and prohibition-era speakeasies, still has plenty of spots that you can sneak away to for a drink, or two.
Of the $62.6 billion in taxes collected by Illinois in 2022, 0.5%, or $320 million, came from alcoholic beverages sales tax.
7. Washington D.C.
Bars per 100,000 People: 24.65
DC is notable for its taste in wine, with its residents drinking 1.07 gallons of ethanol per capita solely in the form of vino. The capital’s eateries, bars, and bottle shops offer one of the most extensive selections of small-producer wines in the country – along with every trophy bottle your heart desires, of course, given that the city is awash with big spenders.
6. Iowa
Bars per 100,000 People: 27.61
Keeping up with the national trend, Iowa witnessed a 13.2% increase in total liquor sales in 2021 when compared to the previous year, with Iowans spending more than $415.8 million on liquor. Iowa City is home to many local bars and taverns where you can let loose after a long day.
5. Wyoming
Bars per 100,000 People: 27.82
Although it is the Least Populated State in America, Wyoming has a strong drinking culture. Famous for its moonshine, the Equality State has plenty of saloons to entertain its residents.
Drunk driving is a serious problem in Wyoming, with the state having the second-highest rate in the country of people killed in crashes involving a drunk driver – 6.78 per 100,000 people.
4. South Dakota
Bars per 100,000 People: 35.61
Whether you like beer, wine, or cocktails, Sioux Falls’ booming bar culture will have something for you. Highball, with its colorful hue lights and its overall relaxing vibe, is one of the more visually appealing cocktail bars in the city.
3. Wisconsin
Bars per 100,000 People: 46.92
Wisconsin has one of the lowest alcohol tax rates in the country, resulting in lower retail and wholesale prices. Wisconsinites, with their predominantly Irish, German, and Polish roots, love a few pints in their sprawling beer gardens and brewpubs.
Some of the drunkest counties in America are in Wisconsin and the state has 7 of the 10 U.S. cities with the highest alcohol consumption per capita.
2. Montana
Bars per 100,000 People: 48.84
Montana ranks 2nd in our list of the States with the Most Bars per Person. The local watering hole in the Treasure State is about more than just grabbing a drink. It is the cornerstone of the community that brings together friends and family for the celebrations of life, or even to just hang out for a couple of hours outside the house.
Alcohol consumption in the Treasure State has increased significantly over the last three decades, from a low of just under 2.8 gallons per capita in 1996 to 3.34 gallons per capita in 2021, an increase of 19.2%.
1. North Dakota
Bars per 100,000 People: 49.73
Thanks to its unparalleled love for beer and easy access, North Dakota is the State with the Most Bars per Capita in America. In fact, there is a joke that every little hamlet in the state has at least three things: a church, a gas station, and a bar. However, this obviously also has a downside as a staggering 47% of all motor vehicle-related deaths in the Peace Garden State involve alcohol.
READ NEXT: $30 Trillion Opportunity: 15 Best Humanoid Robot Stocks to Buy According to Morgan Stanley and Jim Cramer Says NVIDIA ‘Has Become A Wasteland’.
Disclosure: None. 20 States with the Most Bars per Capita in the US is originally published on Insider Monkey.