Abstract
With domestic beer volume sales flat during 2002-07, market reassessment is in order. This report provides actionable insights needed to meet changing consumer needs and expectations; optimally position new product launches; and help realize growth potential. Questions answered in this report include:
- Where is beer share migrating and why?
- What strategies can entice women to become beer drinkers?
- How can large players benefit from the craft beer trend?
- Which brands resonate among consumers for crisp taste, full flavor, or extra hop flavor?
- Are beer pairing and beer education the wave of the future? Can they help stanch user migration?
- How can the industry satisfy the established beer drinker while attracting new converts?
This report provides sales data and analysis for seven beer segments: light beer, premium beer, popular beer, super-premium/craft beer, ice beer, malt liquor, and flavored malt liquor.
This report includes domestic beer purchased for at-home ("off-premise") consumption (products sold primarily in cans and bottles) and "on-premise" consumption in bars, clubs and restaurants.
Excluded from this report are imported beer, no/low-alcohol beer, hard cider and home-brewed beers.
Table of Contents
- Scope and Themes
- What you need to know
- Definition
- Resources used for Consumer sections
- Abbreviations and terms
- Abbreviations
- Terms
- Executive Summary
- In a nutshell: a stagnant market in need of a charge
- Other alcohol choices, fewer occasions, and calorie concerns drive usage down
- More occasions, greater variety drive usage up
- Competitive context
- Continued consolidation among domestic beer players
- Imported beer, wine, and distilled spirits steal share
- Acquisition and nurturing of craft beer players needed to convert new users
- Players and segments
- Topline
- Players, by segment
- Light beer
- Premium beer
- Popular beer
- Super-premium and craft beer
- Ice beer
- Malt liquor
- Flavored malt beverages
- Retail distribution
- Beer purchase-driving attributes at retail
- What the future holds
- Craft beer holds keys to growth
- Beer energy drinks--the rise of a new segment
- Other consumer points of note
- Importance of brands, flavors and taste and types of beer in purchasing beer
- Beer purchase influencers
- Attitude towards beer
- Market Drivers
- Incidence and frequency of drinking beer on decline
- Figure 1: Incidence of personal beer consumption, 2003-07
- Figure 2: Frequency of beer consumption, by type of beer, 2003-07
- Figure 3: Incidence of drinking more or less beer compared to a few years ago, July 2007
- Competition from other alcoholic beverages: imported beer, wine, and
distilled spirits
- Figure 4: Volume sales and market share for domestic beer, imported beer, distilled spirits and wine, 2001-06
- Figure 5: Reasons for drinking less beer today than a few years ago, October 2007
- Figure 6: Dollar sales and market share for beer, distilled spirits and wine, 2001-06
- Figure 7: Comparison of domestic beer, imported beer, and distilled spirits, and wine price per gallon, 2006
- Aging population remains under targeted
- Figure 8: Incidence of personal consumption of beer, by age, May 2006-June 2007
- Figure 9: Personal frequency of drinking beer, by age, May 2006-June 2007
- Figure 10: Number of regular domestic and light beer drunk, by age, 2007
- Figure 11: U.S. population of adults aged 21 and over, 2002-12
- Hispanics--the fastest-growing population group--move to imports
- Figure 12: Population, by race and Hispanic origin, 2002-12
- Figure 13: Incidence and frequency of drinking regular domestic beer, light beer, and imported beer among Hispanics, 2003 and 2007
- Figure 14: Selected Hispanic advertising expenditures for beer, by company/brand, 2005 and 2006
- Figure 15: Incidence of drinking top-selling mass brews among Hispanics, 2005 and 2007
- Increasing incidence of obesity among U.S. adults
- Figure 16: Percentage of population who are overweight or obese, 20-74 years of age, 1988-2004
- Americans trading up to higher-priced super-premium and craft beer
- Market Size and Trends
- Overview: all beer
- Figure 17: Total U.S. retail dollar sales of beer, at current and constant prices, 2002-07
- Figure 18: Total U.S. retail volume sales of beer, 2002-07
- Domestic beer
- Figure 19: Total U.S. retail dollar sales of domestic beer, at current and constant prices, 2002-07
- Figure 20: Total U.S. retail volume sales of domestic beer, 2002-07
- Market trends
- Figure 21: New beer* product releases, 2002-07**
- Figure 22: New beer product claims, 2002-07*
- New product launches led by craft beers
- Figure 23: Top 15 domestic brewers, by number of new products, 2002-07*
- Market Segmentation
- Introduction
- Figure 24: Volume sales of domestic beer, segmented by type, 2005 and 2007
- Light beer
- Figure 25: Total U.S. volume sales of light* beer, 2002-07
- Figure 26: Top 15 light beer brands, 2004 and 2006
- Premium beer
- Figure 27: Total U.S. volume sales of premium beer, 2002-07
- Figure 28: Top six premium brands, 2004 and 2006
- Popular beer
- Figure 29: Total U.S. volume sales of popular beer, 2002-07
- Figure 30: Top ten popular beer brands, 2004 and 2006
- Super-premium and craft beer
- Figure 31: Total U.S. volume sales of super-premium and craft beer, 2002-07
- Figure 32: Total U.S. volume sales of craft beer, 2004-07
- Figure 33: Frequency of drinking microbrewed beer, by age, 2005 and 2007
- Figure 34: Top 15 super-premium and craft beer brands, 2004 and 2006
- Ice beer
- Figure 35: Total U.S. volume sales of ice beer, 2002-07
- Figure 36: Top ten ice beer brands, by volume 2004 and 2006
- Malt liquor
- Figure 37: Total U.S. volume sales of malt liquor, 2002-07
- Figure 38: Frequency of drinking microbrewed beer, by age, 2003 and 2007
- Figure 39: Top ten malt liquor brands, 2004 and 2006
- Flavored malt beverages
- Figure 40: Total U.S. volume sales of flavored malt beverages, 2002-07
- Figure 41: Incidence of personal consumption of flavored alcoholic beverages among adults aged 21-24, 2003 -07
- Figure 42: Top 15 flavored malt beverage brands, 2004 and 2006
- Supply Structure
- Continued consolidation among domestic beer players
- Companies and brands
- Figure 43: Manufacturer sales of domestic beer in the U.S., 2004 and 2006
- Super-premium and craft beer
- Figure 44: Selected brand sales and market share of super-premium and craft beer in the U.S., 2004 and 2006
- Light beer
- Figure 45: Selected brand sales and market share of light* beer in the U.S., 2004 and 2006
- Premium beer
- Figure 46: Selected brand sales and market share of premium beer in the U.S., 2004 and 2006
- Popular beer
- Figure 47: Selected brand sales and market share of popular beer in the U.S., 2004 and 2006
- Ice beer
- Figure 48: Selected brand sales and market share of ice beer in the U.S., 2004 and 2006
- Malt liquor
- Figure 49: Selected brand sales and market share of malt liquor in the U.S., 2004 and 2006
- Flavored malt beverages
- Figure 50: Selected brand sales and market share of flavored malt beverages in the U.S., 2004 and 2006
- Advertising and Promotion
- Figure 51: alcoholic beverage advertising spending trends, 2002-06*
- Figure 52: Beer advertising spending trends, 2002-06
- Figure 53: Selected advertising expenditures for beer, by company/brand, 2005 and 2006
- Anheuser-Busch
- Figure 54: Anheuser-Busch, responsible drinking--TV ad
- Budweiser
- Figure 55: Budweiser beer--TV ad
- Bud Light
- Figure 56: Budweiser beer--TV ad
- Figure 57: Bud Light Lager--TV ad
- Budweiser Select
- Figure 58: Budweiser Select--TV ad
- Michelob Ultra Amber
- Figure 59: Michelob Ultra Amber--TV ad
- SABMiller--it' s a "dog" fight
- Miller Lite
- Figure 60: Miller Lite--TV ad
- Miller Genuine Draft
- Figure 61: Miller Genuine Draft--TV ad
- Miller High Life
- Figure 62: Miller High Life--TV ad, 2006
- Molson Coors Brewing Company
- Coors Light
- Figure 63: Coors Light--TV ad
- Coors Lager
- Figure 64: Coors Lager--TV ad
- Retail Distribution
- Introduction
- Figure 65: Choice of retail channel to purchase beer, by age, October 2007
- Figure 66: U.S. retail sales of beer, by channel, 2005 and 2007
- On-premise
- Figure 67: Places to drinks beer, October 2007
- Figure 68: U.S. on-premise sales of domestic beer, at current and constant prices, 2002-07
- Convenience stores
- Figure 69: U.S. convenience store sales of beer, at current and constant prices, 2002-07
- Beer, wine, and liquor stores
- Figure 70: U.S. beer, wine, and liquor store sales of beer, at current and constant prices, 2002-07
- Supermarkets
- Figure 71: U.S. supermarket sales of beer, at current and constant prices, 2002-07
- Mass merchandisers and wholesale clubs
- Figure 72: U.S. mass merchandiser and wholesale club sales of beer, at current and constant prices, 2002-07
- The Consumer: Usage, Usage Frequency and Brands
- Summary
- Incidence of beer drinking
- Frequency of consumption
- Incidence of drinking beer by brands
- Favorite brand of beer
- Incidence of beer drinking
- Figure 73: Incidence of personal consumption of beer, 2003-07
- Figure 74: Incidence of personal consumption of beer, by gender, age, household income and race/ethnicity, May 2006-June 2007
- Figure 75: Michelob Ultra Amber--TV ad
- Frequency of consumption
- Figure 76: Frequency of drinking different types of beer, 2003-07
- Figure 77: Frequency of drinking different types of beer, by gender, age, household income and race/ethnicity, May 2006-June 2007
- Incidence of drinking beer by brands
- Figure 78: Incidence of drinking beer by imported and domestic brands, by gender, October 2007
- Figure 79: Incidence of drinking beer by imported and domestic brands, by age, October 2007
- Figure 80: Incidence of drinking beer by imported and domestic brands, by race/ethnicity, October 2007
- Favorite brand of beer
- Figure 81: Favorite brand of beer, by gender, October 2007
- The Consumer: Attitudes and Behavior
- Summary
- Interest in flavored and energy-based beer
- Beer-drinking behavior
- Beer purchase-driving attributes at retail
- Beer purchasing habits and preferences
- Importance of brands, flavors and taste and types of beer in purchasing beer
- Incidence of drinking more or less beer compared to a year ago
- Reasons for drinking less beer today, compared to a few years ago
- Reasons for drinking more beer today than a few years ago
- Beer purchase influencers
- Attitude towards beer
- Food and choice of alcoholic beverages
- Interest in flavored and energy-based beer
- Figure 82: Interest in flavored and energy-based beer, by age, October 2007
- Figure 83: Interest in flavored and energy-based beer, by race/ethnicity, October 2007
- Beer-drinking behavior
- Figure 84: Beer-drinking behavior, by gender, October 2007
- Beer purchase-driving attributes at retail
- Figure 85: Beer purchase behavior at retail, by age, October 2007
- Figure 86: Beer purchasing habits and preferences, import vs. domestic and by domestic brand, October 2007
- Importance of brands, flavors and taste and types of beer in purchasing
beer
- Figure 87: Attributes and brand preference when purchasing beer, by gender, October 2007
- Figure 88: Attributes and brand preference when purchasing beer, by age, October 2007
- Figure 89: Attributes and brand preference when purchasing beer, by brand, October 2007
- Incidence of drinking more or less beer compared to a year ago
- Figure 90: Incidence of drinking more or less beer compared to a year ago, by age, July 2007
- Reasons for drinking less beer today, compared to a few years ago
- Figure 91: Reasons for drinking less beer today than a few years ago, by gender, October 2007
- Figure 92: Reasons for drinking more beer today than a few years ago, import vs. domestic and by domestic brand, October 2007
- Reasons for drinking more beer today than a few years ago
- Figure 93: Reasons for drinking more beer today than a few years ago, October 2007
- Figure 94: Reasons for drinking more beer today than a few years ago, import vs. domestic, October 2007
- Beer purchase influencers
- Figure 95: Beer purchase drivers, by gender, October 2007
- Attitude towards beer
- Figure 96: Attitudes toward beer, by gender, October 2007
- Food and choice of alcoholic beverages
- Figure 97: Choice of alcoholic beverage while dining at a restaurant, by gender, October 2007
- Future and Forecast
- Future trends
- Craft beer holds keys to growth
- Opportunity to convert new users
- Beer pairing
- Price increase on radar amid increasing cost of commodities--hops, grains, aluminum, glass etc.
- Beer energy drinks--the rise of a new segment
- Demographic influences
- Growth in beer consumption is likely to lag population growth
- Figure 98: U.S. population of adults aged 21+, 2007 and 2012
- Figure 99: Number of regular domestic and light beers drunk, by age, 2007 and 2012
- Hispanic and black populations present opportunities
- Figure 100: Frequency of drinking beer per month, by type, by race/ethnicity, May 2006-June 2007
- Market forecast
- Domestic beer
- Figure 101: Forecast of total U.S. sales of domestic beer, at current and constant prices, 2007-12
- Forecast factors
- Appendix: Trade Associations

