Exploring The Diverse Us Beer Scene

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Beer has been an integral part of American culture since the beginning. The US was the second-largest beer-producing country in the world in 2022, with a production volume of about 194 million hectoliters, following only China. There are believed to be over 100 different beer styles globally, with the number increasing every day. All beer is either an ale or a lager, with the former being more complex and the latter being clean and refreshing. The most common style of beer produced by big breweries in the US is pale lager, while indigenous styles include amber ale, cream ale, and California common.

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Craft beer sales

The US craft beer market is facing a challenging period, with sales declining by 1% in volume in 2023. However, craft brewers have seen a 3% increase in dollar sales to $28.9 billion, now accounting for 24.7% of the total US beer market. This increase is due to price increases and stronger onsite sales compared to distribution.

The overall beer market in the US is in decline, with market share being lost to spirits and hard seltzers. Beer sales fell behind spirits in 2022, with spirits accounting for 42.9% of sales compared to beer's 41.2%. This shift in consumer preferences is impacting all brewers, but particularly those in the middle market, including craft beer makers with a regional or national footprint.

The dynamics of the beer market are evolving, with taproom breweries, defined as companies that sell more than 25% of their beer onsite, seeing a 9% volume increase in 2022. These small brewers are able to keep costs low and maintain a dedicated community of customers, allowing them to remain viable in a challenging market.

To adapt to changing consumer preferences, some larger breweries, like Boston Beer Company, have diversified their offerings beyond beer, with hard seltzers, ciders, and teas now making up a significant portion of their business. As the craft beer market slows, breweries are having to make difficult choices about their growth strategies and whether to expand their product offerings to remain competitive.

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Beer production volume

The United States is a major producer of beer, with the industry shipping over 2.6 billion cases (equivalent to 6 billion gallons or 192 million barrels) in 2023. This makes the US the second-largest producer of beer in the world, after China. In 2022, the US beer production volume was approximately 194 million hectoliters.

While overall beer production and imports in the US decreased by 5% in 2023, the market share of small and independent brewers, defined as craft brewers, increased. Craft brewer volume sales declined by 1%, but their share of the US beer market by volume increased to 13.3%. Retail dollar sales of craft beer increased by 3%, reaching $28.9 billion. This growth can be attributed to price increases and stronger onsite sales compared to distribution.

The US beer industry is dynamic and competitive, with a significant shift in market share from larger, traditional brewers to smaller, successful brewers and importers. This shift has resulted in lower annual wages for brewing industry employees compared to beer distributors.

In 2023, 79% of all beer consumed in the US was produced domestically, with the remaining 21% imported from over 100 countries. US consumers aged 21 and older purchased approximately 24 gallons of beer, malt-based beverages, and cider per person. The total US beer market, including craft beer, was valued at $117 billion in 2023, with retail sales accounting for $135 billion.

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Beer imports

The US imports a lot of beer from a variety of countries, including Belgium, Germany, Ireland, and Mexico. In fact, America imports 75% of all the beer Mexico exports. Mexican beers such as Corona, Modelo, and Dos Equis are among the best-selling imported beers in the US. In 2022, Modelo was the leading imported beer brand in the US, with about $3.9 billion in sales. Heineken, a Dutch beer, was also one of the first imported beers to gain popularity in the US during the 1980s.

Imported beer began to gain traction in the US market during the 1980s, with Heineken at the forefront, positioning itself as an upscale alternative to domestic beers. The rise in popularity of imported beer coincided with the growth of craft beer in the US during the 1990s and 2000s. While Heineken remains a popular choice, Americans now have a wide range of imported beers to choose from, including those from Mexico, which have come to dominate the American import market.

Corona, produced by Grupo Modelo, a Mexican beer manufacturer and distributor, has played a significant role in shaping American culture, with its association with Cinco De Mayo, a marketing campaign that has transformed the date into an American holiday. The success of Corona and other Mexican beers in the US is evident, as America imports the majority of Mexico's beer exports.

While Mexican beers have captured a significant share of the US import market, beers from other countries, such as Belgium, Germany, and Ireland, are also enjoyed by Americans. The variety of imported beers available in the US provides consumers with a diverse range of tastes and styles, contributing to a dynamic and evolving beer culture in the country.

In summary, the US beer import market is characterised by a strong presence of Mexican beers, led by brands such as Corona and Modelo, while also embracing offerings from other countries like Belgium, Germany, and Ireland. The popularity of imported beers in the US has grown over the years, enriching the drinking culture and providing consumers with a wide array of choices beyond domestic options.

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Beer consumption

Beer is a popular alcoholic beverage in the United States, with approximately 2.82 million 2.25-gallon cases consumed in 2022, equating to roughly 6.3 billion gallons. This figure translates to an estimated consumption of 26.2 gallons per drinking-age adult or approximately 10 ounces per day for adults over the age of 21. Beer consumption varies across different states, with North Dakota topping the list at 45.8 gallons per person annually, while Utah has the lowest consumption at 20.2 gallons.

The preference for beer among American drinkers is evident, with 42% choosing it over wine (34%) and liquor (19%). The number of breweries in the United States has been on the rise, increasing from 2,670 in 2012 to 9,709, reflecting the growing popularity of craft beers. The market value of the beer industry in the United States is substantial, estimated at around $120 billion, and is projected to reach $145 billion by 2027.

While beer is widely enjoyed, excessive drinking can pose health risks and contribute to unsafe driving practices. Binge drinking and heavy drinking are two primary categories of excessive alcohol consumption, with higher-than-average per capita beer consumption states also exhibiting higher rates of unhealthy drinking habits.

With an ever-expanding array of beer choices, from ales to lagers and their numerous sub-styles, consumers are spoilt for choice. The best approach to finding your favourite beer is through experimentation, sampling a variety of styles to discover your preferred taste and aroma.

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Beer styles

The world of beer is incredibly diverse, with well over 100 styles to choose from. However, most beers can be classified as either a lager or an ale, depending on the type of yeast and fermentation process used.

Lager

Lagers are the newer style of beer, and they are fermented for a long time at a low temperature. They rely on bottom-fermenting yeasts that settle at the bottom of the beer. Lagers tend to be smooth, clean, and free of esters. They are usually less smooth than ales and are often the entry point for new drinkers. Classic American lagers include Miller High Life, Coors, Budweiser, and Yuengling.

Ale

Ales are created through top fermentation, where the yeast ferments at warmer temperatures and settles at the top of the beer. The yeast used in ales has a higher tolerance for alcohol than lager yeast. Ales include a wide range of styles, such as pale ales, India pale ales (IPAs), porters, stouts, and wheat and Belgian styles.

Hybrid

Some beers can be classified as hybrids, containing both lager and ale characteristics.

Wild or Mixed Fermentation

Beers can also be classified according to their fermentation, with wild or mixed fermentation being a modern craft beer term for beers fermented with bacteria or non-Saccharomyces yeast.

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Frequently asked questions

There are believed to be over 100 different beer styles in the world, and the US is the second-largest producer of beer in the world. The US has over 4,000 craft breweries, and the craft beer industry employs over 100,000 people, brewing 15.6 million barrels of beer per year.

All beer is either an ale or a lager. Ales tend to be more complex and served at room temperature, while lagers are clean and refreshing, usually served cold.

Examples of ales include Pale Ale, India Pale Ale (IPA), Brown Ale, Irish Beers, and Stouts.

Examples of lagers include Dark Lagers, Wheat Beers, and Pilsner.

Yes, there are hybrid beers that are neither ales nor lagers. These range from creamy ales (dark) to kolsch (light).

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