Why is this topic trending?
The US on-premise beverage market, particularly for craft brewers, is trending due to:
Dynamic Hospitality Industry: The market is constantly evolving, requiring craft brewers to stay agile and informed.
Shifting Consumer Priorities: Consumer preferences are changing, impacting what they eat and drink when dining out.
Competitive Landscape: Craft brewers need to understand these shifts to remain competitive and capitalize on growth opportunities.
Overview
CGA’s On Premise Impact Report highlights positive consumer trends in early 2025 for the US on-premise market. While visitation rates are high, consumer behavior is evolving. Craft brewers need to adapt to trends like health-consciousness, premiumization, and the continued importance of value to stay competitive and maximize growth in 2025. Beer remains dominant, but RTDs and non-alcoholic beers are gaining traction, signaling key areas for innovation.
Detailed Findings
High Visitation Rates: Over 75% of consumers dined out in January 2025, and 50% visited bars. This trend is expected to continue.
Health-Conscious Choices: ⅓ of consumers plan to choose healthier food and drinks, and 25% aim to moderate alcohol consumption.
Premiumization: 20% of consumers plan to opt for higher-quality food and beverages, seeking superior experiences.
Value Remains Crucial: Nearly 50% of visitors prioritize good value, and 30% seek deals and promotions.
Food Pairings Appeal: Pairing food and drinks is a strong opportunity to attract and engage consumers.
High Consumer Satisfaction: 90% of consumers are satisfied with service quality and cleanliness in on-premise venues. Value for money is an area for improvement.
Beer Dominance: Beer holds the largest share (40.5%) of on-premise alcohol sales in the US.
Rise of RTDs: Ready-to-drink beverages are gaining market share, especially in high-energy venues.
Explosive Growth of Non-Alcoholic Beer: Non-alcoholic beer sales are up 33.7% year-over-year, with non-alcoholic IPAs and stouts seeing even higher growth.
Innovation in Craft Beer: Craft brewers are diversifying offerings with family-friendly environments, cocktails, and unique taproom experiences.
Key Takeaway
Craft brewers must embrace innovation and adapt to evolving consumer preferences by focusing on health-conscious options (lower-ABV, non-alcoholic), premium offerings, value-based promotions, and enhanced on-premise experiences to thrive in 2025.
Main Trend
Evolving On-Premise Preferences
Description of the Trend (Evolving On-Premise Preferences)
Consumer preferences in the US on-premise market are evolving beyond traditional norms. While beer remains dominant, there's a clear shift towards health-conscious choices, premium experiences, and a demand for value. This trend signifies a need for craft brewers to diversify their offerings and experiences to cater to these changing consumer expectations.
What is Consumer Motivation?
Quality: Seeking higher-quality food and beverages for a superior experience.
Value: Desiring good value for money and seeking deals and promotions.
Health & Wellness: Prioritizing healthier food and drink options, including moderating alcohol consumption.
Experience: Seeking enjoyable and satisfying on-premise experiences, including food pairings and unique taproom environments.
What is Driving the Trend?
Health Consciousness: Growing awareness and focus on health and wellness, influencing food and beverage choices.
Desire for Premium Experiences: Consumers are willing to spend more for higher quality and unique offerings.
Economic Considerations: Value for money remains important, especially in the current economic climate.
Socialization & Experience Economy: On-premise venues are seen as places for experiences and social interaction, driving demand for enhanced environments and offerings.
What is Motivation Beyond the Trend?
Beyond immediate trends, consumers are motivated by:
Personal Well-being: Making choices that align with their health and lifestyle goals.
Seeking Enjoyment and Reward: Dining and drinking out is often seen as a treat or reward, driving the desire for quality experiences.
Smart Spending: Balancing the desire for quality with the need for value and affordability.
Description of Consumers Article is Referring To
Age: The article doesn't explicitly focus on specific age groups, but implicitly refers to a broad range of adult consumers who visit on-premise venues.
Gender: The article does not differentiate by gender.
Income: The article suggests a diverse income range, as it highlights both premiumization (willingness to pay more for quality) and the importance of value and deals, indicating a spectrum of price sensitivities.
Lifestyle: Consumers are described as valuing convenience (dining out), health-consciousness, and seeking quality experiences. They are likely individuals who incorporate on-premise visits into their social and leisure activities.
Conclusions
The US on-premise market presents both opportunities and challenges for craft brewers in 2025. While beer remains dominant, evolving consumer preferences necessitate innovation and adaptation. Craft brewers who prioritize health-conscious options, premium quality, value-driven promotions, and enhanced experiences will be best positioned for success.
Implications for Brands
Product Diversification: Expand offerings to include non-alcoholic and lower-ABV beers, as well as potentially RTD beverages.
Premiumization Strategy: Emphasize and market the quality and uniqueness of craft brews; consider special releases and limited editions.
Value-Based Promotions: Implement strategic promotions and deals to attract value-conscious consumers and drive traffic during off-peak times.
Enhance On-Premise Experience: Invest in taproom environments and experiences, potentially including food pairings and family-friendly elements.
Implication for Society
Healthier Drinking Options: The growth of non-alcoholic beer and lower-ABV options can contribute to a healthier drinking culture.
Evolving Social Venues: On-premise venues may become more inclusive and cater to a wider range of preferences and demographics, including families and health-conscious individuals.
Economic Growth in Craft Brewing: Adaptation and innovation can drive continued growth in the craft brewing industry, supporting local businesses and economies.
Implications for Consumers
More Choice: Consumers will have a wider variety of beverage options, including healthier and premium choices, in on-premise venues.
Enhanced Experiences: On-premise visits may become more enjoyable and tailored to diverse needs, with better service and more appealing environments.
Value-Driven Options: Promotions and deals will provide more opportunities for consumers to enjoy on-premise experiences without overspending.
Implication for Future
Continued Innovation: The craft brewing industry will likely see continued innovation in product development and on-premise experiences.
Data-Driven Strategies: Data and consumer insights will become increasingly crucial for informing business decisions and marketing strategies.
Competitive Market: The on-premise market will remain highly competitive, requiring ongoing adaptation and differentiation for craft brewers.
Consumer Trend
Trend Name: "Mindful Indulgence On-Premise"
Detailed Description: Consumers are seeking to indulge in on-premise experiences while being mindful of their health and budget. This means they want high-quality, enjoyable food and beverages, but also appreciate healthier options and value for money. They are looking for a balanced approach to dining and drinking out, where indulgence is thoughtful and aligns with their overall lifestyle.
Consumer Sub Trend
Trend Name: "Premiumization with Purpose"
Detailed Description: Consumers are willing to pay a premium for on-premise offerings, but they expect that premium to be justified by quality, uniqueness, and an enhanced experience. "Purpose" implies that the premium experience should align with their values, whether it's supporting craft breweries, enjoying healthier options, or seeking a memorable social outing.
Big Social Trend
Trend Name: "Health-Conscious Socializing"
Detailed Description: Socializing and going out is increasingly incorporating health and wellness considerations. This means consumers are seeking venues and options that allow them to socialize without compromising their health goals. This trend is evident in the rising demand for non-alcoholic and lower-ABV beverages in social settings.
Worldwide Social Trend
Trend Name: "Global Premiumization of Food & Beverage"
Detailed Description: Across the globe, consumers are increasingly seeking premium food and beverage experiences. This trend is driven by rising disposable incomes in many regions and a growing appreciation for quality and unique offerings. While this article focuses on the US, the premiumization trend is a global phenomenon impacting the food and beverage industry worldwide.
Social Drive
Drive Name: "The Desire for Balanced Lifestyle Indulgence"
Detailed Description: Consumers are striving for a balanced lifestyle where indulgence and enjoyment are integrated with health and financial responsibility. This drive is reflected in their on-premise choices, seeking experiences that offer both pleasure and align with their overall well-being and values.
Learnings for Brands to Use in 2025
Embrace Healthier Options: Actively develop and promote non-alcoholic and lower-ABV craft beers.
Elevate the Premium Experience: Focus on quality ingredients, unique brews, and exceptional taproom environments.
Strategic Value Promotions: Utilize data to create targeted and effective promotions that drive traffic without devaluing the brand.
Cater to Food Pairing: Offer curated food pairings to enhance the consumer experience and showcase beer versatility.
Listen to Consumer Feedback: Continuously monitor consumer satisfaction and adapt offerings to meet evolving expectations, particularly regarding value for money.
Strategy Recommendations for Brands to Follow in 2025
Innovate Product Lines: Introduce dedicated lines of non-alcoholic and lower-ABV craft beers, clearly marketed for their health-conscious appeal.
Enhance Taproom Experiences: Invest in creating unique and inviting taproom environments that offer more than just beer, such as events, food menus, and family-friendly spaces.
Develop Value-Driven Programs: Implement loyalty programs, happy hour deals, and themed promotions to attract value-seeking customers and build repeat business.
Educate on Food Pairings: Train staff to recommend beer and food pairings and create promotional menus that highlight these combinations.
Utilize Data Analytics: Leverage data to understand consumer preferences, track trends, and optimize pricing and promotions.
Final Sentence (Key Concept)
In 2025, craft brewers must navigate Evolving On-Premise Preferences by offering Mindful Indulgence through diversified, premium, value-driven, and experience-rich offerings to thrive in the competitive US market.
What Brands & Companies Should Do in 2025 to Benefit from Trend and How to Do It
Craft brewers should prioritize consumer-centric adaptation to capitalize on "Evolving On-Premise Preferences." This can be achieved by:
Expanding product portfolios: Introduce non-alcoholic and lower-ABV options to capture the health-conscious segment.
Elevating brand perception: Focus on quality, craftsmanship, and unique offerings to justify premium pricing.
Optimizing value communication: Clearly communicate value through strategic promotions and highlight the overall experience offered.
Creating holistic experiences: Develop taprooms and events that offer more than just beer, fostering community and engagement.
Data-driven decision making: Use data to understand consumer behavior and tailor offerings to meet specific needs and preferences.
Final Note:
Core Trend: Evolving On-Premise Preferences: Consumer demands are shifting towards healthier options, premium experiences, and value, requiring adaptation from craft brewers.
Core Strategy: Consumer-Centric Adaptation: Craft brewers must prioritize understanding and responding to evolving consumer preferences in all aspects of their business.
Core Industry Trend: Diversification and Innovation: The craft beer industry is seeing diversification in product offerings and on-premise experiences, driven by changing consumer tastes.
Core Consumer Motivation: Mindful Indulgence: Consumers seek on-premise experiences that balance enjoyment and indulgence with health consciousness and value considerations.
Core Trend Summary: Craft brewers in 2025 must adapt to evolving on-premise preferences by offering mindful indulgence, balancing premium quality with value and health-conscious options, and enhancing the overall consumer experience to achieve continued growth.
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