US-Beer Market by Product , and Distribution Channel - Forecast and Analysis 2023-2027

US Beer Market Forecast 2023-2027

The US beer market size is estimated to increase by USD 24.15 billion between 2022 and 2027. The market size is forecast to grow at a CAGR of 4.12%. The expansion of the market is influenced by various factors, such as the rising demand for premium beers, the expansion of online retail channels, and the growing reliance on technology. However, the market faces challenges, including the burgeoning growth of legal recreational cannabis, stringent regulatory frameworks, and taxation policies, as well as the abundance of substitute products competing with beer.

What will be the size of the US Beer Market during the Forecast Period?

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Market Segmentation

By Product

The market share growth by the commercial beer segment will be significant during the forecast period. Large-scale commercial breweries that produce commercial segment in bulk are known as macro breweries. Commercial segment are sold under various brand names by large breweries like Molson Coors, Diageo, and Anheuser-Busch. Commercial segment typically do not offer the same variety of flavors as craft alcohol. However, the commercial market is being upended by the younger generation's changing tastes in alcohol.

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The commercial beer segment was valued at USD 72.42 billion in 2017 and continued to grow until 2021. The demand for commercial variety has increased as a result of factors like innovation and authenticity in ales appealing to younger generations. Commercial variety is also anticipated to grow due to the rise in brewpubs and taprooms as well as the expanded selection of ale available on store shelves. Thus, owing to such factors, the segment is expected to grow during the forecast period.

Market Dynamics and Customer Landscape

The US Beer Market is experiencing significant growth driven by several key factors. One prominent driver is the increasing popularity of craft beer and microbreweries, which offer unique and innovative flavors to consumers. The brewing industry's use of quality ingredients such as cereal grains, barley, hops, and yeast contributes to the market's expansion, providing consumers with a wide range of options to suit their preferences. Additionally, the rise of low-alcohol and alcohol-free beer options caters to health-conscious consumers seeking alternatives with lower alcohol content.

Furthermore, the trend of alcohol socialization, where consumers gather to enjoy bold-flavored drinks, drives demand within the market. This social aspect of drinking fosters a vibrant beer culture, driving sales both in traditional venues like bars and pubs, as well as through emerging channels such as online retail and specialty stores. Additionally, the growing interest in flavored alcohol, exemplified by products like Fever-Tree's Blood Orange Ginger Beer, adds diversity to the market, enticing consumers with new and exciting taste experiences.

Overall, the US Beer Market is buoyed by a combination of innovation, consumer preference for diverse flavors, and the evolving landscape of alcohol consumption, positioning it for continued growth in the foreseeable future.

Our researchers analyzed the data with 2022 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.

Key Market Driver

The market is experiencing significant growth driven by the increasing popularity of online sales channels. The rise of e-commerce platforms has revolutionized the sales and marketing landscape for alcoholic beverages, particularly beer. In the United States, there's a notable uptick in the sales and promotion of alcohol through the Internet, providing a lucrative avenue for small businesses, including craft breweries, to expand their reach to a broader customer base. Platforms like Minibar, Drizly, and Liquor Mart Inc. have gained traction by offering a diverse range of bottled and craft alcohol products, enhancing accessibility and convenience for consumers. Furthermore, the presence of alcohol in online marketplaces enhances vendors' visibility and allows for comprehensive product reviews and descriptions, fostering consumer trust and engagement.

Many suppliers in the US market have established their online presence, selling their products directly through their websites and collaborating with various online retail stores, supermarkets, hypermarkets, and independent online merchants such as Amazon.com Inc. This omni-channel approach amplifies brand exposure and accessibility, contributing to market growth. As the advantages of online retailing continue to unfold, it is anticipated that more companies will venture into e-commerce, further bolstering the market during the forecast period.

Significant Market Trends

Growing demand for low-alcohol beer is an emerging trend in the market growth. The preference for styles with low alcohol and calorie content is growing in the US as there is a greater emphasis on healthy food and the adoption of healthier lifestyles. Low-alcohol or light variety consumption has increased significantly in the US over the past few years. Also among the most popular varieties consumed in the US are light beers like Bud Light, Millers Light, and Coors Light. As a result, retailers and major alcohol producers have responded by providing beer consumers with light variety in a variety of flavors.

As consumers' awareness of their alcohol consumption grows, they have begun to drink less frequently. Therefore, it is anticipated that there will still be a market for low-alcohol variety during the forecast period. As a result, large breweries like Heineken and Collation Brands are introducing light variety to appeal to millennial consumers who are health-conscious. For instance, Constellation Brands provides light drinkers with low-calorie Corona Premier, a alcohol bearing the Corona brand. Thus, the offering of various low-alcohol varieties by companies will drive the growth of the market during the forecast period.

Major Market Challenge

The huge availability of substitute products for beer is a major challenge impeding the market growth. The main alternatives to beer are soft drinks, energy drinks, rum, vodka, and whiskey. Traditional alcoholic beverages with high alcohol content are widely available and fulfill the intended function of alcoholic beverages. Other alternatives, like soft drinks and energy drinks, are also widely available and are thought to be healthier than alcoholic drinks.

In addition, one major factor driving demand for substitute products is their low price when compared to alcohol. Furthermore, non-alcoholic beverages like energy drinks and soft drinks are heavily advertised, which boosts their appeal. However, because of government regulations, alcoholic beverages like beer cannot be advertised. As a result, companies are forced to use surrogate advertising, which is not regarded as a successful marketing strategy for attracting a new target audience. This further limits the sales of varieties with low alcohol content. Thus, the presence of substitutes in the market will negatively impact the market in focus during the forecast period.

Key Market Customer Landscape

The report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.

Global Market Customer Landscape

Who are the Major US Beer Market Players?

The companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.

Anheuser Busch InBev SA NV - The company focuses on manufacturing and distributing alcoholic beverages. The key offerings of the company include beer such as Beyond Beer.

The report also includes detailed analyses of the competitive landscape of the market and information about 15 market companies, including:

• Asahi Group Holdings Ltd.
• Bells Brewery Inc.
• Carlsberg Breweries AS
• Constellation Brands Inc.
• D.G. Yuengling and Son Inc.
• Deschutes Brewery
• Diageo Plc
• Duvel Moortgat NV
• FIFCO USA
• Heineken NV
• Molson Coors Beverage Co.
• New Belgium Brewing Co. Inc.
• Pabst Brewing
• SALT LAKE BREWING CO
• Sierra Nevada Brewing Co.

Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.

Segment Overview

The report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2017 to 2027. 

• Product Outlook 
  • Commercial Beer
  • Craft Beer

• Distribution Channel Outlook 
  • On-trade
  • Off-trade

Market Analyst Overview

The Market continues to thrive, driven by factors such as mergers & acquisitions, evolving alcohol sales trends, and the influence of millennials. With bars, restaurants, and nightclubs serving as key distribution channels, alongside the growing presence of online stores, the market witnesses a diverse range of advertisements targeting different demographics. Lager, premium lager, and other segments contribute to the market's compound annual growth rate (CAGR), with packaging options including bottles (glass and cans) catering to consumer preferences. Macro breweries like Anheuser-Busch InBev dominate, alongside emerging players such as China Resources Snow Breweries. As urbanization and purchasing power increase, the US market remains dynamic, offering a wide array of varieties to cater to evolving consumer tastes alongside wine and spirits.

The global beer market is subject to various government tactics that regulate production, distribution, and consumption. Ads and marketing play a significant role in shaping consumer preferences, often emphasizing the appeal of traditional glass bottles and associating brands with quality and heritage. Macro breweries dominate the market, utilizing both off-trade and on-trade distribution channels to reach consumers. In emerging markets, there's a notable rise in alcoholic beverage consumption, driven by changing consumer preferences and increased disposable income.

Government regulations, including taxes and advertising restrictions, impact market dynamics. Off-trade distribution, such as sales through retail stores, competes with on-trade distribution, including sales in bars and restaurants. Overall, the global beer market is influenced by a combination of government policies, marketing strategies, distribution channels, and shifting consumer preferences, particularly in emerging markets experiencing increased alcoholic beverage consumption.

US Beer Market Scope
Report Coverage	Details
Page number	123
Base year	2022
Historic period	2017-2021
Forecast period	2023-2027
Growth momentum & CAGR	Accelerate at a CAGR of 4.12%
Market growth 2023-2027	USD 24.15 billion
Market structure	Fragmented
YoY growth 2022-2023(%)	3.76
Competitive landscape	Leading companies, Market Positioning of companies, Competitive Strategies, and Industry Risks
Key companies profiled	Anheuser Busch InBev SA NV, Asahi Group Holdings Ltd., Bells Brewery Inc., Carlsberg Breweries AS, Constellation Brands Inc., D.G. Yuengling and Son Inc., Deschutes Brewery, Diageo Plc, Duvel Moortgat NV, FIFCO USA, Heineken NV, Molson Coors Beverage Co., New Belgium Brewing Co. Inc., Pabst Brewing, SALT LAKE BREWING CO, Sierra Nevada Brewing Co., Stone Brewing Co. LLC, Suntory Holdings Ltd., The Boston Beer Co. Inc., and The Mark Anthony Group of Companies
Market dynamics	Parent market analysis, Market forecasting, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, and Market condition analysis for the forecast period.
Customization purview	If our market report has not included the data that you are looking for, you can reach out to our analysts and get segments customized.

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What are the Key Data Covered in this Market Research Report?

• CAGR of the market during the forecast period
• Detailed information on factors that will drive the market growth and forecasting of the market between 2023 and 2027
• Precise estimation of the size of the market size and its contribution to the parent market
• Accurate predictions about upcoming market trends and analysis and changes in consumer behavior
• Growth of the market industry across the US
• Thorough market growth analysis of the market’s competitive landscape and detailed information about companies
• Comprehensive market analysis and report on the factors that will challenge the market research and growth of market companies

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