Beer Losing Popularity

 

The most recent wave of Alcoholic Beverage Demand Tracker, a periodic survey of US adults age 21+ who consume any type of alcohol at least once a week or more, shows that beer is losing ground in terms of which alcoholic beverage category is most likely to be considered someone’s “favorite.” However, the news is not all bad for the beer category, as it appears to be gaining ground among some groups of consumers that have been less likely to favor beer in the past.

Of further concern for the beer industry, the most prevalent reason given by 21-27 year olds who are consuming less beer was that they are “getting tired of the taste of beer” 39 percent of them said that was among the reasons for consuming less. Some of this can be attributed to a normal seasonal pattern where beer consumption drops off after its summer peak, however this attitude is more prevalent this year than in September 2012 when 32 percent of those drinking less beer cited this as a reason why. The most common reasons cited by 35-54 year olds who are consuming less beer are “consuming more of other types of alcohol” (24 percent) and “trying to lose weight” (23 percent).

“Our latest consumer research reveals some serious warning signs but also a few bright spots for the beer industry,” says David Decker, president of Consumer Edge Insight.

While the category is seeing a decline in affinity between the two groups of consumers that the beer industry has long-considered its primary targets, men.

Overall in September, 39 percent of alcohol consumers named beer as their favorite category, followed by wine at 30 percent, spirits at 28 percent, flavored malt beverages at 4 percent, and alcoholic cider at 1 percent. Compared to September 2012, beer has lost 2 percentage points at the expense of the other alcohol categories. Looking at the trend by gender, beer’s share loss is driven by men, 51 percent of whom described beer as their favorite category in September 2013, vs. 54 percent last year. But beer is making strides among women, 26 percent of whom named beer as their favorite alcoholic beverage in September 2013 vs. only 24 percent last year. This coincides with the recent proliferation of new beer brands and flavor choices, as women are more likely than men to say they were drinking more beer due to “finding new brands” (39 percent of women vs. 36 percent men) and “finding new flavors” (38 percent of women vs. 31 percent of men).

Looking at the trend by age, beer is losing the most share among 21-27 year olds (as only 33 percent of them in September 2013 said that beer was their favorite, compared to 39 percent in September 2012), and 35-54 year olds (as 41 percent of them in September 2013 said that beer was their favorite, compared to 47 percent in September 2012). But beer is gaining share among beer drinkers who are age 55 and above, as 38 percent of them in September 2013 said that beer was their favorite, compared to 31 percent in September 2012. Beer is holding share among 28-34 year olds, with 42 percent of them saying that beer is their favorite category in both September 2013 and September 2012.and 21-27 year olds, the good news is that the beer category is seeing gains among the two groups that it has long- struggled to reach, women and older drinkers. However, the lower per capita alcohol consumption among females those who are age 55+ means that the beer industry needs to keep working hard to restore the strong affinity to the beer category among men and young adult drinkers.

News and information presented in this release has not been corroborated by FSR, Food News Media, or Journalistic, Inc.

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