Table of Contents
Overview
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- What you need to know
- Definition
Executive Summary
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- Key takeaways
- Market overview
- Moderate growth projected through 2024 for $117 billion market
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- Figure 1: Total US sales and forecast of beer, craft beer and alcoholic cider, at current prices, 2014-24
- The issues
- Beer attrition rates outpace that of reduction of alcohol consumption in general
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- Figure 2: Change in beer consumption compared to a year ago, by age, July 2019
- Are beer drinkers confusing health with ‘diet”?
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- Figure 3: Attitudes and behaviors related to health and nutrition, July 2019
- On premise declines challenge path to product discovery
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- Figure 4: US volume sales of beer, craft beer and FMBs, by channel, 2014-2018
- The opportunities
- Strategic innovation is sticking
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- Figure 5: Attitudes and behaviors related to beer consumption, July 2019
- Attitudes on flavor, occasion and choice offer ways to expand reach
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- Figure 6: Attitudes and behaviors related to beer choice, July 2019
- Millennials still rule the world, keep your eye on Gen Z
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- Figure 7: Alcoholic drink consumption, by generation, July 2019
The Market – What You Need to Know
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- Dollar sales reach $117 billion in 2019
- Light beer leads the category, yet losing share to imports and craft
- Wine and spirits stealing the spotlight from beer
Market Size and Forecast
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- Beer, craft beer and alcoholic cider market posts modest growth
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- Figure 8: Total US sales and forecast of beer, craft beer and alcoholic cider, at current prices, 2014-24
- Figure 9: Total US sales and forecast of beer, craft beer and alcoholic cider, at current prices, 2014-24
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- Figure 10: Total US sales and forecast of beer, craft beer and alcoholic cider, at inflation-adjusted prices, 2014-24
- Declines in volume sales are leveling off
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- Figure 11: Total US volume sales and forecast of beer and craft beer, 2014-22
- Figure 12: Total US volume sales and forecast of beer and craft beer, 2014-22
Market Breakdown
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- Light, premium and imports together comprise three quarters of market
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- Figure 13: Volume sales of beer market, by segment, 2019
- Imported and craft segments fueling the category
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- Figure 14: Total US volume sales and forecast of beer and craft beer, by segment, 2017-19
- Off-premise sales far outpace on-prem
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- Figure 15: US volume sales of beer, craft beer and FMBs, by channel, 2014-2018
Market Perspective
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- Figure 16: Alcohol consumption, July 2019
- Wine, spirits and RTDs grow sales
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- Figure 17: US retail market size, spirits and wine/sparkling wine, 2017-19
- Alcoholic seltzers show stellar growth
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- Figure 18: Multi-outlet sales of spiked seltzers in the domestic beer/ale segment, rolling 52 weeks 2018 and 2019
- Cannabis legalization deepens competitive field and opportunity
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- Figure 19: Cannabis statements – Alcohol, July 2019
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Market Factors
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- Consumer confidence triggers trading up
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- Figure 20: Consumer sentiment index, January 2007- July 2019
- Pay attention to shifting generational behaviors
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- Figure 21: Frequency of consumption, by generation, July 2019
- Younger generations – and families – are increasingly diverse
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- Figure 22: Distribution of population, by generation and Hispanic origin, 2019
- Health-related considerations shape beer consumption
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- Figure 23: Trends in obesity prevalence among adults aged 20 and over (age adjusted), 1999-2000 through 2015-16
Key Players – What You Need to Know
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- Marquee suppliers dominate, but smaller players growing
- Imports and innovation drive the market
- Beers draw inspiration from other drink categories
- Cans account for 70% of launches, support eco-friendly claims
Company and Brand Sales of Beer
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- Largest suppliers dominate share, but smaller players are faster growing
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- Figure 24: Share of multi-outlet sales of beer, craft beer and alcoholic ciders, by leading companies, 52-weeks ending August 11, 2019
- Figure 25: Multi-outlet sales of beer, craft beer and alcoholic ciders, by leading companies, rolling 52 weeks 2018 and 2019
What’s Working
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- Mexican imports from Constellation Brands are strong performers
- AB InBev innovation aligns with neo-traditional wellness
- Cans come into fashion
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- Figure 26: Beer and cider launches, by pack type, 2014-19*
- Environmentally friendly packaging claims have become standard
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- Figure 27: Beer and cider launches, by environmentally friendly packaging claims, 2014-2019*
What’s Struggling
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- In domestic beer, flagship brands struggle
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- Figure 28: Multi-outlet sales of domestic beer/ale, by leading companies and brands, rolling 52 weeks 2017 and 2018
- Cider growth slows, facing competition from boozy seltzers
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- Figure 29: Multi-outlet sales of alcoholic ciders, by leading companies and brands, rolling 52 weeks 2018 and 2019
- Limited editions, seasonality and premium product claims decline
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- Figure 30: Beer launches, by select claims, 2014-2019
What to Watch
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- Beer-blurring
- Cocktail-flavored, hazy and dessert-inspired beers appeal to youth
- Beers with more healthful and lower-alcohol profiles, or with CBD
- Occasion matters to refine brand identity
The Consumer – What You Need to Know
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- Men, Millennials, Hispanics, parents and the affluent drink more beer
- Domestic beer leads, but diversity in style and source abounds
- Wide-ranging selection factors, especially among the most engaged
- Market attrition continues
- Beer has a fun, casual reputation, that pairs well with food
Alcoholic Drink Consumption
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- Beer most widely consumed alcoholic beverage
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- Figure 31: Alcoholic drink consumption, July 2019
- 70% of men drink beer, less than half of women do so
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- Figure 32: Alcoholic drink consumption, by gender, July 2019
- Millennials stand out as top beer drinkers
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- Figure 33: Alcoholic drink consumption, by generation, July 2019
- Parents are engaged drinkers and beer tops their list
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- Figure 34: Alcoholic drink consumption, by parental status, July 2019
- Hispanic consumers may help propel future growth
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- Figure 35: Alcoholic drink consumption, by Hispanic origin, July 2019
Frequency of Beer Consumption
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- Consumers are equally split on consumption frequency
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- Figure 36: Frequency of consumption, July 2019
- Men are more likely to be frequent beer drinkers
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- Figure 37: Frequency of beer consumption, by gender, July 2019
- Millennials are key, as about half drink beer regularly
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- Figure 38: Frequency of consumption, by generation, July 2019
- Income drives frequency of consumption
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- Figure 39: Frequency of consumption, by household income, July 2019
- Parents more likely to be regular beer drinkers
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- Figure 40: Frequency of consumption, by parental status, July 2019
Types of Beer Consumed
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- Domestic beer leads, but diversity in style and source abounds
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- Figure 41: Types of beer consumed, July 2019
- Men drink greater number and range of beers
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- Figure 42: Types of beer consumed, by gender, July 2019
- Millennials are top consumers of craft, flavored and hybrid beers
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- Figure 43: Types of beer consumed, by generation, July 2019
- Most affluent consumers are strong consumers of “true-craft” beer
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- Figure 44: Types of beer consumed, by household income, July 2019
- Hispanic consumers embrace beer imported from Mexico
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- Figure 45: Types of beer consumed, by Hispanic origin, July 2019
Selection factors
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- Brand, style lead the consideration set
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- Figure 46: Selection factors when choosing a beer, July 2019
- For men, many factors considered in quest for the right beer
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- Figure 47: Selection factors when choosing a beer, by gender, July 2019
- Millennials take more selection factors into account
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- Figure 48: Selection factors when choosing a beer, by generation, July 2019
- Wealthier consumers look beyond price to many other selection factors
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- Figure 49: Selection factors when choosing a beer, by household income, July 2019
- Parents have greater interest in range of selection factors
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- Figure 50: Selection factors when choosing a beer, by parental status, July 2019
Behaviors and Preferences
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- More than a quarter of beer drinkers report drinking less beer
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- Figure 51: Attitudes and behaviors related to beer consumption, July 2019
- Women beer drinkers more likely than men to be cutting back
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- Figure 52: Attitudes and behaviors related to beer consumption, by gender, July 2019
- Older consumers cut back, while Millennial consumption stays stable
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- Figure 53: Attitudes and behaviors related to beer consumption, by generation, July 2019
- Parents consumption holds steady; they also seek “nutritional info”
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- Figure 54: Attitudes and behaviors related to beer consumption, by parental status, July 2019
Attitudes toward Brands and Beverage Types
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- Brand is widely associated with occasion or personal identity
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- Figure 55: Attitudes toward brands and beverage types, July 2019
- For men, beer choice reflects personal identity
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- Figure 56: Attitudes toward brands and beverage types, by gender, July 2019
- Millennial opinions represent strong, yet fragmented participation
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- Figure 57: Attitudes toward brands and beverage types, by generation, July 2019
- Parents highly attuned to brand, and use at different occasions
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- Figure 58: Attitudes toward brands and beverage types, by parental status, July 2019
Attitudes Related to Choice
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- Product choice often spontaneous
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- Figure 59: Attitudes and behaviors related to beer choice, July 2019
- Flavor, occasion, spontaneity shape Gen Z and Millennial consumption
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- Figure 60: Attitudes and behaviors related to drink choice, by generation, July 2019
Attitudes Related to Health and Nutrition
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- Health-related considerations prime for about three to four in 10
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- Figure 61: Attitudes and behaviors related to health and nutrition, July 2019
- Younger beer drinker confuse health with diet
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- Figure 62: Attitudes and behaviors related to health and nutriition, by generation, July 2019
- Opportunity with parents in offering more healthy beer options
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- Figure 63: Attitudes and behaviors related to health and nutrition, by parental status, July 2019
Associations with Alcoholic Drinks and Beer
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- Beer seen as fun drink for unwinding and pairing with some foods
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- Figure 64: Associations with alcoholic drinks and beer, July 2019
- Men’s glowing views of beer contrast sharply with women’s
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- Figure 65: Associations with beer, by gender, July 2019
- Gen Z needs some coaching from brands
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- Figure 66: Associations with beer, by generation, July 2019
- Hispanic consumers associate beer with fun, good taste and high quality
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- Figure 67: Associations with beer, by Hispanic origin, July 2019
Beer Purchase Location
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- The vast majority – eight in 10 – most often purchase beer off-premise
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- Figure 68: Beer purchase location, July 2019
- Supermarkets lead purchase location
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- Figure 69: Beer purchase location, July 2019
- Millennials use a wider range of off- and on-premise locations
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- Figure 70: Off-premise and on-premise purchase (most and also), by generation, July 2019
Appendix – Data Sources and Abbreviations
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- Data sources
- Sales data
- Fan chart forecast
- Consumer survey data
- Direct marketing creative
- Abbreviations and terms
- Abbreviations
- Terms
Appendix – The Market
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- Figure 71: Total US sales and forecast of beer, craft beer and cider, at inflation-adjusted prices, 2014-24
- Figure 72: Total US volume sales and forecast of light beer, 2014-22
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- Figure 73: Total US volume sales and forecast of super premium and premium beer, 2014-21
- Figure 74: Total US volume sales and forecast of imported beer, 2014-22
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- Figure 75: Total US volume sales and forecast of craft beer, 2014-22
- Figure 76: Total US volume sales and forecast of popular beer, 2014-22
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- Figure 77: Total US volume sales and forecast of ice beer, 2014-22
- Figure 78: Total US volume sales and forecast of malt liquor, 2014-22
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- Figure 79: Total US volume sales of alcoholic cider, 2014-18
- Figure 80: US volume sales of beer, craft beer and FMBs, by channel, 2014-18
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- Figure 81: US volume sales of beverage alcohol, by channel, 2014-18
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