Domestic Beer Drinkers Migrating to Wine, Liquor

Taste, calories, health concerns drive drinkers of domestic beer to wine and liquor.

January 30, 2014

CHICAGO – Wine is indeed fine and liquor is definitely quicker, according to Mintel, which has revealed that 22% of Americans say they are consuming less domestic beer in lieu of wine, while 18% are focusing on liquor. And while domestic beer is falling flat, craft beer is on the rise, especially among the 25-34 age group, where 51% favor small batch brews over their larger brethren.

It’s not just a matter of taste, though, as 20% of Americans say they are reducing their consumption of domestic beer because it is too caloric, while 15% maintain it is unhealthy. Those concerns have helped bolster the sales of wine, which realized a 2.6% sales increase last year to $42 billion, compared to a flat 0.3% rise for beer.

Overall, 53% of U.S. consumers reported drinking liquor in the last six months and 52% drank wine, while 52% downed a domestic beer and 45% consumed an imported beer.

"We've seen for years that Americans of legal drinking age are no longer only beer, wine, or liquor drinkers, instead they're trying a variety of alcoholic beverages. Their drinks—or drinks—of choice during the Super Bowl will likely be no exception, with consumers curious to try new craft beers, hard ciders, sparkling wine, and flavored liquors," says Jennifer Zegler, global food and drink analyst at Mintel. "However, this thirst for variety has led to flat volume sales for brewers, even though people are buying more of much-smaller segments like craft beer and hard cider. Brewers of all sizes must cater to this curiosity with new styles, taste profiles, and limited-edition options.”

Brewers are responding to this increased demand. According to Mintel Global New Products Database (GNPD), beer represented 44% of new alcoholic product launches last year, up from only 15% in 2009.

Limited edition beers registered an 850% increase in the US from 2010-2013, products with environmentally-friendly packaging rose 233%, and premium beers saw a 37% lift.

"While craft brewers have led the trend of seasonal releases, consumers admit that it's more than their beer that they change depending on the season. This means adults of legal drinking age are always reconsidering their alcoholic beverage choices, leaving manufacturers constantly competing for consumption," Zegler said.

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