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Insight of the Day: Beer premiumisation trends in the US

Findings:

  • The overall US beer market declined by -3.6% in volume (Jan-Aug 2024 vs. 2023), with only Indiana showing growth (+0.5%).

  • Super-premium beer grew by +4%, softening the declines in lower price tiers.

  • Growth in Premium+ segments contrasts with sharp declines in Value and Standard segments, particularly in major states like California, Florida, and Texas.

  • Imported beers, particularly from Mexico, are gaining traction within the Super-premium category.

Key Takeaway:

Premiumisation continues to reshape the beer market, with Super-premium beers gaining favor as affordable yet premium alternatives to wine and spirits, even amid overall volume declines.

Trend:

  • Primary Trend: Premiumisation of the beer category.

  • Sub-Trend: Affordability-driven migration toward Super-premium beers.

Consumer Motivation:

  • Seeking affordable luxury in beer as a substitute for pricier wine and spirits.

  • Preference for higher quality and imported products for premium occasions.

What Is Driving the Trend:

  • Rising consumer demand for affordable premium experiences.

  • Downtrading from higher-cost alcohol categories like wine and spirits.

  • Increased popularity of imported Super-premium beers, particularly from Mexico.

Who Are the People Referenced:

  • Marten Lodewijks, President of IWSR’s US Division, provides expert analysis.

  • Beer consumers in the US, spanning diverse demographics but primarily targeting those seeking premium experiences on a budget.

Description of Consumers, Products, or Services:

  • Consumers: Younger, budget-conscious yet quality-oriented individuals (21–45 age range).

  • Products: Premium and Super-premium beers, including domestic and imported options (e.g., Mexican beers).

  • Services: Retailers and brewers offering premium beer options at competitive price points.

Conclusions:

  • The beer market is being reshaped by ongoing premiumisation and a shift away from Value and Standard segments.

  • Super-premium beers are well-positioned to grow as consumers seek affordable alternatives to higher-cost alcohol categories.

Implications:

For Brands:

  • Prioritize Super-premium and Premium+ beer segments to capture shifting consumer preferences.

  • Highlight quality, import status, and premium experience in marketing.

For Society:

  • Reflects evolving consumer preferences for quality over quantity in alcohol consumption.

  • Supports a trend toward more mindful indulgence.

For Consumers:

  • Offers accessible luxury and premium experiences without overspending on wine or spirits.

For the Future:

  • Super-premium beer is likely to grow as it aligns with affordability and quality trends.

  • Value and Standard beers may continue to decline unless revitalized.

Consumer Trend:

  • Affordable premiumisation in the beer market.

Consumer Sub-Trend:

  • Preference for imported and Super-premium beer as substitutes for more expensive alcohol categories.

Big Social Trend:

  • Mindful consumption of alcohol with a focus on quality over quantity.

Local Trend:

  • Variations in Premium+ beer growth by state, with states like Indiana and Texas showing higher resilience.

Worldwide Social Trend:

  • Rising demand for imported and premium alcoholic beverages across markets.

Name of the Big Trend Implied:

"Affordable Premiumisation in Alcohol."

Name of the Big Social Trend Implied:

"Mindful Indulgence in Beverage Consumption."

Social Drive:

  • Price sensitivity paired with the desire for premium experiences.

Learnings for Companies to Use in 2025:

  • Focus on Super-premium Growth: Develop and market affordable luxury beer products.

  • Leverage Imports: Highlight imported beers’ authenticity and premium appeal.

  • Target Price-Conscious Consumers: Position beer as a quality alternative to pricier alcohol options.

Strategy Recommendations for Companies to Follow in 2025:

  1. Expand Super-premium Offerings: Introduce unique and innovative products in the premium beer category.

  2. Collaborate with Importers: Partner with global brands to bring desirable products like Mexican beers to market.

  3. Enhance Marketing: Emphasize affordability, quality, and indulgence in campaigns targeting younger demographics.

  4. Address Value Segment Declines: Innovate in the Value segment to prevent further erosion, such as introducing hybrid products or local specialties.

Final Sentence (Key Concept):

The US beer market in 2025 will revolve around affordable premiumisation, with Super-premium beers driving growth by offering consumers high-quality, budget-friendly indulgence.

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