Craft Beer Sales Continue to Climb

New research from Mintel suggests that craft beer sales will triple by 2017.

January 25, 2013

CHICAGO - While the economic downturn has affected consumer spending across many sectors, craft and craft-style beers are defying recessionary trends with an impressive upward trajectory. Indeed, latest research by Mintel on the craft beer market in the United States shows that sales of craft beer nearly doubled between 2007 and 2012 ?" increasing from $5.7 billion in 2007 to $12 billion in 2012.

Moreover, the trend toward craft beer options is set to enjoy robust growth through 2017, with Mintel forecasting the segment to grow to $18 billion by 2017, a result that will see the segment tripling in the decade between 2007 and 2017.

"The growth rates seen by craft beer are impressive, especially during a period when domestic and imported beers have shown a flat to declining performance," said Jennifer Zegler, Mintel beverage analyst, in a press release. "Unlike its domestic and imported beer counterparts, craft beer has been able to defy overall beer market trends and continue expansion during the economic downturn and subsequent slow recovery. While the craft and craft-style beer category remains a small segment of the $78 billion US beer industry, the category has been able to stabilize the overall beer industry, which has experienced volume declines in the domestic and imported beer categories since 2008."

Increasing consumer demand has supported the rise of craft beer in the United States. Nearly a quarter (24%) of consumers who drink beer indicate that in 2012 they drank more craft beer sold at stores compared to 2011. Meanwhile, more than one in five (22%) report consuming more craft beer in bars or restaurants.

When looking at age, Mintel research shows that craft beer??s sweet spot is with consumers between the age of 25 and 34. While overall, 36% of U.S. consumers drink craft beer, 50% of older Millennials (25 to 34 year olds) do so. And craft beer also wins on taste. Some 43% of both Millennials and Generation X say that craft beer tastes better than domestic beer, compared to 32% of baby boomers.

"Despite the variety of beer releases created by craft breweries, craft beers are not yet everyday beer choices for most drinkers due to a lack of understanding about their taste profiles. To continue growing, craft beer must be its own best advocate and expand appeal beyond Millennials who are most likely to consume it. An additional barrier is lack of knowledge. Craft brewers need to focus on education through tastings and classes that inform consumers about the differentiation in flavor between craft beer and other alcoholic drinks," said Zegler.

Read more about craft beer sales in convenience stores in NACS Magazine.

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