The CPG Trend Sheet

Most Recent CPG Trends and Insights

Trends in the U.S. Beer Market: Summer 2024

As the summer season heats up, beer sales in the U.S. experience significant shifts. For brand marketers and managers, understanding these trends is crucial for effective strategizing and capturing market opportunities. Here’s a comprehensive look at the current trends, market shares, and emerging brands in the beer industry.

Top 5 Most Popular Beer Brands and Their Market Share

The top-selling beer brands in the U.S. over the 6 months:

  1. Modelo: 8.2%
  2. Bud Light: 7.9%
  3. Michelob Ultra: 6.9%
  4. Corona: 6.3%
  5. Miller: 5.7%

Last year, Modelo overtook Bud Light to become the number-one beer brand in sales. However, this year started with a slight slowdown for Modelo, while Bud Light and Michelob Ultra saw sales increases, particularly boosted by their star-studded Super Bowl commercials.

Seasonal Beer Sales

Beer sales fluctuate significantly with the seasons:

  • Summer: 32% of annual sales
  • Fall: 24%, with a spike due to fall sports and dine-in locations
  • Spring: 22%
  • Winter: 22%, with a boost from holiday sales in November and December

These trends highlight the importance of strategic marketing and promotions aligned with seasonal changes. For example, summer promotions could focus on outdoor activities and events, while fall campaigns might leverage sports seasons and holiday gatherings.

Alcoholic vs. Non-Alcoholic Beer Sales

While non-alcoholic beer is growing at over 35% year over year, it still makes up a small portion of the total beer market at 3.2%. This indicates a niche but expanding segment driven by health-conscious consumers and those seeking alternative beverage options. This growth represents an opportunity for brand marketers to innovate and capture a new audience by promoting their non-alcoholic options.

Marketing Strategies for Non-Alcoholic Beer

Non-alcoholic beer aligns well with the lifestyle behaviors of athletes and those seeking health boosts. Brands can co-promote these beers with keto-friendly broths and zero-sugar energy drinks through basket analysis and a deeper understanding of buying behaviors. For instance, retailers could create special sections or bundles that feature non-alcoholic beers alongside other health-oriented products. Leveraging influencers in the fitness and wellness community can also be a powerful strategy to reach health-conscious consumers and we see brand co-sales significantly influenced by TikTok trends.

Emerging Beer Brands

Several new beer brands are gaining traction and showing promise for future growth:

  • Yuengling: Experiencing a resurgence in sales, particularly in the Northeast and Midwest with it’s new variant flavors and beer types.
  • Great Lakes Brewing: Known for its craft beers and regional appeal.
  • Wayward: A craft brand gaining popularity for its unique flavors.
  • Fat Head’s Brewing: Expanding its reach with robust sales.
  • Firestone and Ope Brewing: Both show significant growth and strong consumer loyalty.

Understanding and leveraging the growth of these brands can help larger companies refine their competitive strategies. For instance, partnerships or limited-edition collaborations with trending craft breweries could attract new customer segments.

States with the Largest Share of Beer Sales

The most significant beer sales are seen in states with more significant populations:

  • California
  • Texas
  • Florida
  • New York

However, Northern Midwest states like the Dakotas, Montana, and Wisconsin have higher beer purchases per capita, indicating a robust regional culture of beer consumption. This data can help marketers tailor their regional campaigns, focusing on local tastes and preferences to boost engagement.

Regional Marketing Strategies

Successful regional marketing strategies tailor products and promotions to local tastes and preferences. Brands should lean into local buying behaviors in high-consumption states like Wisconsin or the Dakotas. Pairing beer with regional favorites can be effective; in the Dakotas, where beer and cheese soup are a common dine out combination, a brand like Pacifico could market this pairing to appeal to local tastes. Understanding and integrating these local preferences into marketing campaigns can significantly boost engagement and sales.

Marketing Implications and Strategies

  1. Seasonal Promotions: Align marketing campaigns with seasonal peaks. Summer campaigns could highlight refreshing, light beers, while fall promotions could focus on robust, hearty brews ideal for cooler weather and sports viewing.

  2. Non-Alcoholic Beer Innovations: Given the rapid growth in non-alcoholic beer sales, brands should consider expanding their product lines to include high-quality, flavorful, non-alcoholic options. Marketing these products as healthier, lifestyle-friendly choices could attract a broader consumer base.

  3. Leverage Emerging Trends: Pay attention to emerging brands and trends, such as the rise of regional craft breweries. Collaborations with popular local breweries and retailers can help more prominent brands stay relevant and innovative. 

  4. Targeted Regional Marketing: Utilize data on state-wise beer consumption to tailor marketing strategies. For instance, promoting more heavily in high-consumption states like Wisconsin or the Dakotas can increase brand visibility and sales in those regions.

  5. Event Sponsorships and Collaborations: Sponsor local events, sports teams, or festivals, particularly in high-consumption regions. Such sponsorships can enhance brand presence and create positive associations with the community and celebration.

Conclusion

The U.S. beer market is dynamic, with seasonal fluctuations, a growing interest in non-alcoholic options, and emerging brands making their mark. Understanding these trends helps brands and retailers adapt their strategies to maximize sales and meet consumer demands. Leverage these insights for your next marketing campaign to stay ahead of the curve.

By focusing on these strategic areas, beer brands can effectively navigate the evolving market landscape, ensuring they remain competitive and relevant in the eyes of consumers.

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