In the US, beer’s volumes fall of 3.6% in the first eight months of this year is reflected in a fairly consistent picture across the country, with almost all states in decline.
Performance within the biggest beer markets was mixed, with some declining below the national average of 3.6%, such as Florida, Texas and New York. Some other states fared worse, such as California, Ohio and Georgia. Indiana was the only state that saw any growth in 2024 (+0.5% Jan-Aug year-on-year).
This latest data comes from IWSR US Navigator, the alcohol industry’s most trusted source of monthly volume data for the total US beverage alcohol market — across wine, spirits, beer, cider, RTDs and no-alcohol — by price tier, for all 50 states going back to 2019, based on highly accurate local tax office data.
“The challenges facing the beer industry in the US stem from a number of factors,” says the president of IWSR’s US division, Marten Lodewijks. “While no single factor stands out as the primary cause, most of them have generally pushed the category in a negative direction.
“It’s challenging to make definitive conclusions about beer’s performance at a state level, as each state has unique dynamics. However, in general, states that performed better tended to experience stronger growth within higher price tiers.”
Beer in the US 2019-2024 – Market Share (Volume) by Price Tier
Super-premium stands out
Although beer’s premium-and-above price segments show declines of 1% (Jan to Aug), the super-premium segment was up 4%.
Super-premium beer has been growing by high single digits in the US’s top five beer markets of California, Texas, Florida, New York and Illinois, and is helping to soften some of the declines in standard beer. Double-digit growth was seen in many states including Nevada, Indiana, Texas and Maryland.
The relatively more positive performance of premium-and-above is largely being driven by the affordability trend, as consumption occasions evolve and consumers seek cheaper alternatives to spirits or other drinks categories. This trend will likely continue into the year ahead.
“Consumers still get a sense of premiumisation while spending less on a premium beer versus a premium wine or spirit,” comments Lodewjiks.
Growth of imported beer (mainly, but not exclusively, from Mexico), is also taking share from domestic products. Imported brands tend to also skew towards super-premium.
Losses in value segment drag down overall market
Growth in the premium-and-above tiers is coming to the cost of all lower price segments, driving down beer’s total volumes in the country.
Most major states are seeing significant declines in the value price tier. California, Illinois, Florida and Wisconsin are amongst the largest markets that saw double-digit volume declines in the value segment.
The key difference between California, which experienced a larger overall loss, and states like Florida and Texas, with smaller losses, is that the latter pair also saw growth in the premium price tier, which California did not. This premium-and-above performance helped Florida and Texas offset losses from their rapidly-declining standard and value segments.
Part of this is due to ongoing premiumisation, not just within beer but across alcohol more widely, and is also likely driven by consumers downtrading from more expensive categories into beer.
“Going forward,” adds Lodewijks, “as long as consumers feel pressured by prices both within and beyond beverage alcohol, it’s likely that premium beer will keep performing well due to its lower cost compared to other categories.
“The underlying consumer demand for more premium brews will always be relevant.”
