The Costly World Of Ipas: Why So Expensive?

India Pale Ale, or IPA, is a hoppy beer style within the broader category of pale ale. IPAs are known for their high alcohol content and strong flavours, and they are consistently ranked as the most popular craft beer style among American consumers. However, this popularity comes at a cost. The average cost of an IPA ranges from $18 for a 4-pack of 16-ounce cans to $25 for a 12-pack of 12-ounce bottles. So, what makes IPAs so expensive? The answer lies in the key ingredients: hops and malt.

The role of hops and malt in IPA's high cost

The cost of India Pale Ale (IPA) beer is largely influenced by the ingredients used, particularly hops and malt. IPAs require large amounts of hops and malt, which can be expensive, especially when used in the quantities needed for this style of beer.

Hops are a key ingredient in IPAs and can be a significant contributor to the overall cost of the beer. Hops are costly to grow and maintain, requiring significant time, money, energy, and resources. Additionally, hops are only harvested once a year, which can drive up the price. The type of hops used can also impact the cost, with certain varieties being more expensive due to higher demand or limited availability.

Malt is another important ingredient in IPAs that can affect the overall cost. IPAs typically use more malt than other beer styles to achieve a higher alcohol content. The price of malt can vary depending on the source and whether it needs to be milled. Additionally, the use of more malt in IPAs can lead to a higher final gravity, which can impact the flavour and mouthfeel of the beer.

The combination of large amounts of hops and malt in IPAs drives up the cost of production, resulting in a higher price for consumers. The high demand for IPAs, especially the popular hazy, New England-style IPAs, can also contribute to the overall cost.

Furthermore, the logistics of producing and distributing craft beers, such as IPAs, can be more expensive than domestic, big-name brands. This includes factors such as packaging, distribution, and the cost of operating craft breweries.

Overall, the cost of IPAs is influenced by a combination of factors, including the high usage of hops and malt, the demand for the style, and the logistics of producing and distributing craft beer.

The average cost of an IPA

Several factors contribute to the higher cost of IPAs compared to other beer styles. Firstly, IPAs use larger amounts of hops and malt, which are more expensive ingredients. Hops, in particular, are costly to grow and maintain, and they are only harvested once a year, which can increase their price. Additionally, the demand for IPAs, especially the popular Hazy IPA style, can drive up prices. The expense of producing IPAs, along with factors like inflation and demand, also contributes to their higher retail price.

The cost of an IPA can also vary depending on where it is purchased. Wholesalers like Costco may offer slightly lower prices on cases of IPAs compared to liquor stores. Bars and restaurants typically sell draft beer at market price, which can be higher than other locations. However, the difference in price across different retailers may be minimal, as beer prices are often governed by federal or state laws.

It is worth noting that the cost of an IPA can be influenced by factors beyond the ingredients and production costs. The style and popularity of an IPA can impact its price, with certain styles like Hazy IPAs commanding a higher price due to their intense hop usage and consumer demand. Additionally, the location where the IPA is purchased, such as a bar, restaurant, wholesaler, or retailer, can also affect the final cost.

Why IPAs are pricier than lagers

IPAs (India Pale Ales) are generally pricier than lagers due to the ingredients used, the demand for the style, and logistics. IPAs require larger amounts of hops and malt to achieve their characteristic flavour and higher alcohol content. Hops are one of the largest contributors to the expense of IPAs, as they are costly to grow and maintain, with a long planning horizon and only a single annual harvest. The high demand for aromatic hops and their many varieties further increase the price.

IPAs also use more malt than other beers to achieve a higher alcohol content, which increases the end price. The more malt is used in the brewing process, the more hops are needed to balance the flavours, driving the price up even further.

The expense of IPAs can also be attributed to their popularity and the economics of supply. IPA is the most popular craft beer style among American consumers, and the massive demand comes at a cost. Bigger brewers often have long-term contracts with hop growers, which restricts the supply to smaller producers and drives up prices.

Additionally, it is generally more expensive to buy craft beer than domestic, big-name brands due to the increased costs of production. Lagers, for example, require time, storage, and a cooling system, making them more expensive to produce than ales, which can be fermented, hopped, and canned in a few weeks. As a result, craft breweries often exclusively produce ales, as they are less financially draining than lagers.

The demand for IPA and its economic cost

India Pale Ale, or IPA, is one of the most popular craft beer styles among American consumers. The demand for this aromatic brew comes at an economic cost, as the two main ingredients, hops and malt, are expensive and used in large quantities. Hops, in particular, are costly to grow and maintain, and the price increases with demand for the various sought-after varieties. The type of hops used in IPAs is harvested only once a year, which also contributes to the overall expense.

The average cost of an IPA ranges from $15 for a 4-pack of 12-ounce cans to $25 for a 12-pack of 12-ounce bottles. These prices can vary depending on factors such as the type of IPA, the quantity purchased, the type of packaging (cans or bottles), and the geographic location of the purchase.

The IPA style includes a range of variations, such as the West Coast IPA, known for its fruity flavors and crisp, clean body, and the New England-style IPA, which is unfiltered, resulting in a hazy appearance and a smooth consistency. The Double or Imperial IPA is another variation, with a higher hop concentration and increased alcohol content. These different styles of IPAs also contribute to the overall economic cost, as they require specific ingredients and processes that may increase production costs.

The demand for IPA has led to a thriving craft beer market, with brewers constantly experimenting with new variations and styles. The popularity of IPAs has also resulted in an increased demand for hops, driving up the prices of this key ingredient. While the cost of IPA beers may vary depending on various factors, the demand for this style of beer and the associated costs of ingredients and production contribute to the overall economic cost for consumers.

The cheapest places to buy IPAs

IPAs are one of the most popular craft beer styles in the US, but they can be expensive. The two main reasons IPAs are pricier than other beers are that they use more hops and malt, which are costly ingredients. Hops are only harvested once a year, and demand for this aromatic herb is high, which also increases the price.

So, where are the cheapest places to buy IPAs? Well, it depends on whether you're buying in bulk or not. If you're buying a single can or bottle, it's unlikely you'll find much difference in price between wholesalers, liquor stores, bars, restaurants, gas stations, or grocery stores.

However, if you're buying in bulk, wholesalers like Costco will offer the best prices. You'll also find that the more you buy, the cheaper it gets. For example, a case of 24 cans is likely to be cheaper per can than a 4-pack.

If you're looking for an even better deal, consider buying domestic adjunct lagers made by larger brewers. These beers are produced en masse and will always be cheaper than craft beers. For example, you can find a case of 30 16oz cans of Natural Ice for $15 (that's just 50 cents a can!) or a six-pack of Pabst Blue Ribbon for $6.98 (Walmart, February 2022). Even big names like Budweiser offer great prices, such as a party pack of 36 cans for $20.98.

If you're set on buying an IPA, there are still some affordable options. Here are some of the cheapest IPAs you can find in stores:

• Goose Island IPA by Goose Island Beer Company, Chicago, IL: This award-winning brew often costs $7.99 or less for a six-pack.
• Ananda IPA by Wiseacre Brewing Company, Memphis, TN: This golden gem of a beer usually goes for $6.99 per six-pack.
• Session IPA by Full Sail Brewery, Hood River, OR: You can often find a six-pack of this IPA for less than $7.50.
• Saga IPA by Summit Brewing Co, St Paul, MN: This highly-rated beer is available for less than $8 per six-pack in the Midwest region.
• Redhook Long Hammer IPA by Red Hook Brewery, Seattle, WA: A classic West Coast-style IPA, you can often find this beer for $7.99 or less.
• Sierra Nevada Torpedo Extra IPA by Sierra Nevada Brewing Co, Chico, CA: This highly-rated IPA can be found for $7.99 a six-pack.
• Founders All Day Haze IPA by Founders Brewing Co, Grand Rapids, MI: This hazy IPA comes in a 15-pack for just $19 or less, or a six-pack for $9.
• Mission Street IPA by Steinhaus Brewing Co, CA (exclusively brewed for Trader Joe’s): At just $5.99 for a six-pack, this is one of the cheapest IPAs you can find.

Frequently asked questions