Lotte Peplow, the Brewers Association’s American craft beer ambassador for Europe, suggests the American craft brewing industry is entering a period of maturity. with 2022 experiencing the first year of 0% growth. However, this doesn’t mean the market is static. So what’s going on under the surface?
Photographs: Brewers Association
Every year, the Brewers Association, the not-for-profit association representing small and independent American craft brewers, commissions consumer research via the Harris Poll to gain insight into the changing preferences of the beer drinker. Participants in the survey are asked about their current beer consumption compared to the previous year. Remarkably, for the first time since 2015, the percentage of consumers drinking more craft beer equals those drinking less.
So, what is causing this shift? It turns out that the leading reason for consumers drinking less craft beer is their increasing preference for other alcoholic beverages. The percentage of people who drink across all alcohol beverage categories is on the rise and shows how omnibibulous American drinkers are becoming. For instance, around 50% of weekly craft beer drinkers have now also embraced canned cocktails, flavoured malt beverages (FMB), and hard seltzers on a regular basis.
Many of the new products hitting shelves are competing for consumer attention by emphasising variety and flavour, the same attributes that characterise craft beer. These alternative alcohol beverages go way beyond hard seltzer and FMBs and are increasingly going after the craft beer occasion and consumer.
New customers are essential to grow the craft beer space, and every year a new cohort of legal drinking age adults enter the beverage alcohol market. Until recently, this regularly appearing new cohort contributed to growth in craft beer. However, the latest generation possesses distinct preferences and other concerns (moderation being one), leading to a
divergence from craft beer.
In America, the trajectory of the beverage alcohol market is being propelled by the increasing patronage of female and BIPOC (black, indigenous, people of colour) consumers.
Surprisingly, though, the craft beer industry exhibits the lowest percentage of drinkers from either group, compared to other major beverage alcohol categories. Bridging this gap and connecting with a more diverse audience will benefit the craft beer category in several ways, including reducing further contraction in market share.
When asked about factors influencing beer preference, flavour remains a key driver of purchase intent, with 95% emphasising its significance. Crisp, as a flavour profile, is the most popular, universally liked flavour, followed by juicy/hazy, fruit-forward variants, then hoppy/bitter and spicy. While juicy/hazy and fruit-forward (sweet) beers displayed the most growth, malty/dark and tart flavours remained static or experienced a slight decline.
Beyond flavour, freshness and aroma emerged as key considerations, with alcohol content levels proving increasingly important as well. Approximately 60% of respondents said high ABV was important, while approximately 30% expressed a preference for low ABV options.
What’s noteworthy is the interest in ABV from the two youngest age categories of 21–34-year-old and 35–44-year-old. The latter’s interest in low ABV can be explained by changing life demands, such as settling down and having a family, and the former’s interest in high ABV by low spending levels and wanting more bang for their buck. Both age groups clearly care more about alcohol content then their older counterparts. How these preferences evolve in the future will be fascinating to watch.
We asked people whether their purchasing decisions were based on style or brand first. Eight years ago the response was 80:20 in favour of style and now it’s 60:40 style then brand, reflecting the number of different options now available and how important branding has become.
In 2022, the IPA category accounted for 43% of all craft beer sales in the US, up from 30% in 2017. The category has grown because it has changed and taken on new dimensions, offering options that depart from its original characterisation as bitter beer. Newer sub-styles exhibit more juicy/hazy, less bitter profiles that invite new customers in and help grow the category.
The driving force behind IPA’s continued transformation can be found in the rise of two distinct segments: the imperial IPA and the juicy/hazy IPA. The imperial IPA caters to a discerning demographic enamoured with high ABV, audacious boldness, pronounced bitterness, and robust hop aromas and flavours. On the other hand, the juicy/hazy IPA appeals to a fresh audience of beer enthusiasts, with its subdued bitterness and velvety mouthfeel, a delightful invitation to the world of craft beer for those seeking a more approachable experience.
Beyond the IPA craze, other categories performing strongly include fruit beers in a variety of iterations, such as fruited classic or sour beers, and a collection of lighter, lower-ABV styles, like lagers, blonde ale, golden, and wheat ale.
All beer lovers are invited to attend London Craft Beer Festival, on 11th and 12th August, where the Brewers Association will be showcasing a range of top-quality, highly innovative, and style-diverse American craft beers. Some 22 American craft breweries will be participating, pouring approximately 60 different beers, ranging from alcohol-free to big and experimental.
Sampling opportunities
If you’re planning a trip to America, check out the Great American Beer Festival, from 21st-23rd September, in Denver, Colorado, where your tastebuds will be tantalised and your senses stimulated by a dazzling array of American craft beers.
In the UK, American craft beers are available from online retailers such as Athletic Brewing, Sierra Nevada shop, Beers of Europe, Beer Merchants, Beer Gonzo, and Trembling Madness, as well as select bottle shops, off-licences, online subscription services, supermarkets, and selected pubs and bars.
The Brewers Association publishes a wealth of resources to understand and enjoy craft beer, downloadable free of charge from www.brewersassociation.org.
• Lotte Peplow is the American craft beer ambassador for Europe for the Brewers Association and is based in London. She is a certified cicerone, BDI-accredited beer sommelier, beer writer, author, beer communicator, international beer judge, homebrewer, and beer lover.
