July 28, 2014 - Blog
Despite flat volume sales on the traditional domestic beer front, craft beer continues to make inroads, especially among the important 25- to 34-year-old age group, which is the segment’s heaviest users. According to a new report from Mintel, sales of craft beer (including craft-style offerings) will reach $20 billion in 2014, more than doubling sales of five years ago.
According to Mintel, more than 1 in 5 respondents drink craft beer. And while this is smaller than the 53 percent of 22-year-old consumers that drink any beer, it’s not far off from 30 percent of consumers who only drink non-craft beer.
Craft beer drinkers are most likely to say beer style, such as IPA or stout, is important in product selection, with 51 percent saying this is an important factor, as opposed to only 11 percent of non-craft only drinkers. Brand does not have as strong of appeal among craft drinkers (47 percent), as compared to non-craft drinkers (56 percent).
Mintel Food and Drink Analyst Beth Bloom said there is a strong sense of community in the craft beer world, and consumers like to share knowledge with one another and are highly invested in the products that they choose. “Not only that, but craft brands share exposure through collaboration, a practice almost wholly unique to the craft beer market. As such, tap rooms, bottle shops, and beer-garden-style breweries, where craft beer can be discovered, discussed, consumed on-site, and even purchased for at-home enjoyment, make for a complete, customizable experience. Craft beer is not only a beverage choice; it appears to be a lifestyle choice," she said.
More than half of craft drinkers like to share their knowledge of beer with others, which has helped thrust many small brewers into the limelight, as word of mouth is often their strongest ally. In fact, some 13 percent of craft beer drinkers say they select a product that looks cool when the kind of beer they typically drink is not available and 8 percent of craft drinkers say label or packaging design is important in their purchase decision.
Mintel also found 55 percent of respondents are willing to spend more money for craft beer, indicating that craft-style beer produced by larger brewers provides major breweries an avenue for considerable growth.
“The leading purchase driver among craft beer drinkers is style, pointing to a more discerning consumer base," Bloom said. “Not only do craft drinkers consider themselves knowledgeable and adventurous, but they’re eager to share this knowledge. In that regard, the craft beer boom shares much in common with the wine renaissance over the past decade. They may not be brand loyal in the strictest sense, but they enjoy supporting local breweries and sharing in that sense of community that the smaller brewers have instilled."
Craft beer has been an increasingly important segment to the overall beer market. According to the Brewers Association, as of June 2014, there were 3,040 breweries operating in the United States, an increase of 446 breweries since June 2012. As of June 2013, the number of craft breweries was at 2,483, showing 98% of U.S. brewers are craft brewers. Craft brewers currently employ an estimated 108,440 full-time and part-time workers, many of which are manufacturing jobs, contributing significantly to the U.S. economy.
As reported on a recent SupplySide Beverage Insights news desk, American craft beer exports increased by 49 percent in 2013 representing 282,526 barrels at an estimated $73 million. Canada maintained its standing as the industry's largest export market with shipments increasing 92 percent by volume in 2013. Interestingly, shipments to Asia Pacific increased by 73 percent and accounted for more than 44,228 barrels. American craft beer exports have increased substantially in the Asia Pacific regions largely due to emerging markets such as Singapore, Hong Kong and Thailand.
The demand for craft beer presents a great opportunity for product trial and customization, which will keep the market interesting in the near future. This focus on product differentiation and innovation also is a win-win for the alcohol ingredients market (flavors, colors and other ingredients for beers, spirits and wines), which is expected to experience steady growth to reach $1.18 billion in 2019, up from 989.2 million in 2013.
Cheers.
Despite flat volume sales on the traditional domestic beer front, craft beer continues to make inroads, especially among the important 25- to 34-year-old age group, which is the segment’s heaviest users. According to a new report from Mintel, sales of craft beer (including craft-style offerings) will reach $20 billion in 2014, more than doubling sales of five years ago.
According to Mintel, more than 1 in 5 respondents drink craft beer. And while this is smaller than the 53 percent of 22-year-old consumers that drink any beer, it’s not far off from 30 percent of consumers who only drink non-craft beer.
Craft beer drinkers are most likely to say beer style, such as IPA or stout, is important in product selection, with 51 percent saying this is an important factor, as opposed to only 11 percent of non-craft only drinkers. Brand does not have as strong of appeal among craft drinkers (47 percent), as compared to non-craft drinkers (56 percent).
Mintel Food and Drink Analyst Beth Bloom said there is a strong sense of community in the craft beer world, and consumers like to share knowledge with one another and are highly invested in the products that they choose. “Not only that, but craft brands share exposure through collaboration, a practice almost wholly unique to the craft beer market. As such, tap rooms, bottle shops, and beer-garden-style breweries, where craft beer can be discovered, discussed, consumed on-site, and even purchased for at-home enjoyment, make for a complete, customizable experience. Craft beer is not only a beverage choice; it appears to be a lifestyle choice," she said.
More than half of craft drinkers like to share their knowledge of beer with others, which has helped thrust many small brewers into the limelight, as word of mouth is often their strongest ally. In fact, some 13 percent of craft beer drinkers say they select a product that looks cool when the kind of beer they typically drink is not available and 8 percent of craft drinkers say label or packaging design is important in their purchase decision.
Mintel also found 55 percent of respondents are willing to spend more money for craft beer, indicating that craft-style beer produced by larger brewers provides major breweries an avenue for considerable growth.
“The leading purchase driver among craft beer drinkers is style, pointing to a more discerning consumer base," Bloom said. “Not only do craft drinkers consider themselves knowledgeable and adventurous, but they’re eager to share this knowledge. In that regard, the craft beer boom shares much in common with the wine renaissance over the past decade. They may not be brand loyal in the strictest sense, but they enjoy supporting local breweries and sharing in that sense of community that the smaller brewers have instilled."
Craft beer has been an increasingly important segment to the overall beer market. According to the Brewers Association, as of June 2014, there were 3,040 breweries operating in the United States, an increase of 446 breweries since June 2012. As of June 2013, the number of craft breweries was at 2,483, showing 98% of U.S. brewers are craft brewers. Craft brewers currently employ an estimated 108,440 full-time and part-time workers, many of which are manufacturing jobs, contributing significantly to the U.S. economy.
As reported on a recent SupplySide Beverage Insights news desk, American craft beer exports increased by 49 percent in 2013 representing 282,526 barrels at an estimated $73 million. Canada maintained its standing as the industry's largest export market with shipments increasing 92 percent by volume in 2013. Interestingly, shipments to Asia Pacific increased by 73 percent and accounted for more than 44,228 barrels. American craft beer exports have increased substantially in the Asia Pacific regions largely due to emerging markets such as Singapore, Hong Kong and Thailand.
The demand for craft beer presents a great opportunity for product trial and customization, which will keep the market interesting in the near future. This focus on product differentiation and innovation also is a win-win for the alcohol ingredients market (flavors, colors and other ingredients for beers, spirits and wines), which is expected to experience steady growth to reach $1.18 billion in 2019, up from 989.2 million in 2013.
Cheers.
No comments:
Post a Comment