Craft Beer Continues Growth

Sales have doubled in the last five years, led by Millennials’ preferences, buying habits.

March 12, 2015

CHICAGO – Sales of craft beer reached an estimated $20 billion in 2014, doubling from just five years prior and the category is forecast to reach $36.3 billion by 2019, according to market intelligence agency Mintel.

As the craft beer category becomes increasingly competitive, with larger companies and niche brewers alike entering the market, research shows that brewers have their work cut out for them when attracting craft drinkers.

According to Mintel’s report, 23% of respondents drink craft beer, with craft consumption highest among those ages 25-34. However, these drinkers are not as selective as one might assume, with 83% of craft beer drinkers saying that they also drink non-craft.

The steady growth of the craft brew category is due, in part, to the majority (55%) of respondents who report that they are willing to spend more for craft beer than non-craft. According to the survey, 15% of consumers are influenced to try a new beer when they see people who are similar to themselves drinking it, and 44% of craft beer drinkers say it is a source of pride to try as many different kinds of beer as they can. The majority of beer drinkers age 22-34 say the brand and style of beer you drink says a lot about you, showcasing the value this group places on image. Furthermore, craft beer drinkers overall are more likely than those who drink non-craft to say they are knowledgeable about beer, and 53% like to share their knowledge of beer with others.

Craft beer has clearly found a sweet spot with 25- to 34-year-olds, where consumption is highest at 29%, while consumers age 22-24 prefer domestic beer (46%). “This suggests that new drinkers may take a couple of years to become interested in craft beer,” said Mintel Food and Drink Analyst Beth Bloom.

Whereas at-home consumption rules when it comes to general beer drinking, drinkers of craft products only slightly favor drinking at home versus drinking at a restaurant or bar (51%). “Craft products are perceived to be more expensive than general beer offerings,” said Bloom. “For this reason, consumers may not be interested in purchasing bulk packages for consumption at home. Having one or two beers at a restaurant may appear as a more affordable means of trial.”

Falling in line with their interest in beer style, craft drinkers indicate the influence of on-package product descriptors on purchase decisions (31%). So while they are open to trying new products, they seek some degree of guidance and familiarity. Millennial beer drinkers are significantly more likely to select products they’ve never tried before and to take recommendations from store employees and friends.

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