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Insight of the Day: The trends shaping the US craft beer scene

Key Findings from the Brewers Association Survey

  • Shift in Consumption: Craft beer consumption is slightly declining for the first time since 2015.

  • Diverse Drinking Habits: Craft beer drinkers are consuming a variety of alcoholic beverages, not just craft beer.

  • Demographic Trends: While craft beer's popularity has grown overall, consumption frequency is decreasing. The demographic still skews male and Caucasian, indicating a need for greater diversity.

  • Flavor Preferences: Flavor remains the top priority for craft beer consumers, but there's a disconnect with younger drinkers (21-34) who find the flavor unappealing or are unfamiliar with craft options.

  • Mindful Drinking: Local ingredients, low calorie/carb options, organic choices, and smaller pack sizes are gaining popularity.

  • Younger Drinker Trends: The 21-34 age group shows more interest in both high and low alcohol content beers, with health concerns being a factor. "Crisp" flavors are universally liked, while women in this age group also favor juicy/hazy flavors.

Key Takeaway:

The American craft beer market is evolving. While overall consumption has grown, there's a decline in frequency and a need to appeal to a more diverse audience. Flavor remains crucial, but younger drinkers need more education and options aligned with their health-conscious preferences.

Trend:

  • Mindful drinking and a focus on health are influencing consumer choices.

  • The 21-34 age group is a key demographic to watch, with their interest in both high and low ABV beers and their preference for crisp and juicy/hazy flavors.

Consumer Motivation:

  • Flavor: The primary driver in choosing craft beer.

  • Health and Wellness: Younger drinkers are increasingly mindful of alcohol intake and health implications.

  • Variety and Exploration: Consumers are open to trying new flavors and experiences.

Driving Trends:

  • Competition: Craft beer faces increasing competition from other alcoholic beverages.

  • Changing Demographics: The 21-34 age group has different preferences and priorities than older drinkers.

  • Health Consciousness: A growing awareness of health and wellness is impacting beverage choices.

People Referred to:

  • Craft beer drinkers: Survey respondents who consume craft beer at least several times a year.

  • Non-craft beer drinkers: Survey respondents who consume alcohol several times a year or more but not craft beer that often.

  • 21-34-year-olds: A key demographic highlighted in the survey, particularly their distinct preferences and motivations.

Description of Product and Consumer Age:

  • Product: American craft beer

  • Consumer Age: The survey focuses on two primary groups: 21-34-year-olds and 35+ consumers.

Conclusions:

  • The craft beer industry needs to adapt to changing consumer trends.

  • Innovation in flavors, experiences, and engagement is necessary to attract new and retain existing drinkers.

  • Understanding and catering to the preferences of the 21-34 age group is crucial for future growth.

Implications for Brands:

  • Flavor Innovation: Develop new and exciting flavors that appeal to younger drinkers, particularly those seeking crisp, juicy/hazy options.

  • Health-Conscious Options: Offer low-calorie, low-carb, and smaller pack sizes to cater to mindful drinking trends.

  • Education and Engagement: Increase awareness of craft beer styles and flavors among younger drinkers.

  • Diverse Marketing: Expand marketing efforts to target a more diverse audience, including women and non-white consumers.

Implications for Society:

  • Shift in Drinking Culture: The trend toward mindful drinking and health consciousness may lead to a shift in how people consume alcohol.

  • Increased Competition: The growing popularity of various alcoholic beverages could lead to a more diverse and competitive market.

Big Trend Implied:

  • Health and Wellness: The focus on health and mindful drinking is a significant trend impacting the beverage industry, including craft beer. Brands need to adapt to meet consumer demands for healthier and more conscious choices.

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