Beer Buying Trends: How Many People Buy Beer?

Beer is a popular alcoholic beverage worldwide, but how many people buy it? The answer to this question is complex and depends on various factors, including location, demographics, and purchasing habits. Beer distributors play a crucial role in the alcohol industry, connecting breweries with retailers and consumers, and the methods of beer distribution vary across different countries. In the United States, for example, the beer industry sold about $135 billion worth of beer and malt-based beverages in 2023, with approximately 85% of beer sold for at-home consumption. China, on the other hand, leads the world in beer consumption and production, with over 360 million hectoliters produced in 2022. While the global beer market faces uncertainties due to declining consumption in some regions and increasing costs, understanding the purchasing behavior of beer drinkers and the distribution systems in place is essential for breweries, distributors, and retailers alike.

Beer buying behaviour: How has it changed over the years?

Beer is one of the most commonly consumed alcoholic beverages worldwide, and its market has changed significantly over the past few decades. The rate of change has accelerated in recent years, with the number of breweries in the US, for example, growing from 49 in 1983 to 14,597 in 2023.

Generational Shifts in Buying Habits

The alcohol delivery app Drizly surveyed more than 13,000 adults of drinking age in 2019 to understand generational shifts in buying habits. The survey found that Gen Z and Millennials spent less on alcohol than older generations, with Gen Z also making fewer trips per year to purchase alcohol.

Changes in Beer Preferences

While beer remains the preferred beverage of US consumers aged 21 and older as of 2022, the market share of the top two traditional brewers has decreased by about 16 points since 2013, with smaller breweries and importers gaining market share.

Changes in Beer Distribution

The three-tier system of alcohol beverage regulation in the US, which requires that beer distributors sell to beer retailers, has seen significant changes. The number of traditional beer distributors has decreased from 4,595 in 1980 to around 3,000 in 2020, while the number of licensed alcohol beverage wholesalers has increased to more than 20,000.

Changes in Beer Consumption Occasions

Observational research has found that craft beer consumers tend to value the experience of both consuming and shopping for beer, while mass-market beer consumers take a more utilitarian perspective. Craft beer consumers are also more likely to be young males, and they spend more time in the store and ask staff questions.

Changes in Beer Production

Craft beer is often associated with small-scale production and slower fermentation processes, and consumers increasingly seek out pricier beers that express the typicality and authenticity of the territory of production.

Changes in Beer Packaging

Consumers' preferences for craft beer attributes have also evolved. Intrinsic attributes such as taste, fermentation process, and color are now favored over extrinsic attributes such as brand name, store promotion, and packaging size.

Beer sales: How do they vary by country?

Beer sales and consumption vary significantly from country to country. In 2022, global beer consumption stood at approximately 192.1 million kiloliters, showing a recovery from the impact of the COVID-19 pandemic. China was the largest beer-consuming country for the 20th consecutive year, with Asia being the leading region. However, when it comes to per-capita consumption, the Czech Republic has consistently topped the list for three decades.

Regional consumption patterns vary, with Asia being the top beer-consuming region, followed by Europe, Central and South America, and North America. Within these regions, countries like Vietnam, India, Germany, Spain, Brazil, Mexico, and Canada contribute significantly to overall consumption.

The United States, despite having high total consumption, has been losing market share over the last decade. On the other hand, Ireland has been experiencing rapid growth in per-capita consumption, moving up in the rankings in recent years.

The global beer market is facing uncertainties, with consumption declining in some key regions and costs rising. While the industry has rebounded from the lows of the pandemic, it remains to be seen how it will fare in the coming years as consumers seem to be choosing beer less often.

Craft beer has gained popularity, and changing customer preferences, local special circumstances, and macroeconomic factors all influence the beer market in different countries.

Beer consumption: Who drinks the most beer?

Beer is the third most popular drink in the world, outranked only by water and tea. It is also the most widely consumed alcoholic beverage. The ways in which people buy beer have changed significantly over the past few decades, with alcohol ordering and delivery apps becoming more popular.

When it comes to beer consumption, the country that tops the list per capita is the Czech Republic, with 140.12 litres consumed per person in 2021. Beer in the Czech Republic is cheaper than bottled water, typically costing around $1 USD for a half-litre. The country is also the birthplace of the pilsner. Eight other European countries are in the top ten for per-capita consumption, including Germany, the birthplace of many modern brewing processes and beer styles.

The only non-European country in the top ten is Botswana, which has high per-capita beer consumption due to cultural and social dynamics involving alcohol consumption, as well as the affordability of beer compared to other alcoholic beverages.

While China consumes the greatest total volume of beer, with 34,979 thousand tons, the United States ranked 24th in the world in 2021 with 72.89 litres of beer consumption per capita.

Beer distribution: What are the different methods?

Beer is one of the most common beverages worldwide, with approximately 202,200,000 barrels being sold in 2018, equal to 8.5 trillion gallons of beer. Beer sales are most common in areas throughout Europe and America.

Three-Tier Distribution System

The three-tier distribution system is the most common method of beer distribution in the United States. It includes three tiers: the producers, distributors, and buyers. The producers are the breweries, the buyers are the bars or retailers, and the distributors are the middlemen that move the beer from the breweries to the bars. This system was implemented to increase tax revenue from beer, make it easier to regulate, and create a safer environment for consumers.

The benefits of this system include:

• Preventing tied-houses (bars run by producers that only sell their own brand) and other unfair practices.
• Allowing consumers to enjoy a variety of beers.
• Making it easier to regulate, ensuring that only quality beer reaches consumers.
• Allowing for efficient tax monitoring and collection.

However, there is also opposition to this system. Some distributors have become large corporations with significant power over smaller breweries. Additionally, the three-tier system can disrupt international trade, making it difficult for foreign breweries to enter the American market.

Two-Tier Distribution System

Most of the rest of the world's beer sales go through a two-tier distribution system, with breweries supplying directly to bars or retailers. Self-distribution can be seen as a positive because it gives breweries more control over their product and how it is advertised. However, it can also be a disadvantage as breweries may need more capital to distribute directly to retailers and bars, requiring warehouse space, equipment, transportation, and more workers.

Four-Tier Distribution System

In less populated areas of some states, a four-tier distribution system may be in place, where large retailers distribute to smaller retailers.

Beer trends: What are people drinking now?

The beer market is expected to remain resilient in 2023, with a forecast volume growth of between +1% and 2%. While the cost-of-living crisis is affecting consumer behaviour, beer is seen as an 'affordable luxury' and is expected to be largely unaffected as consumers defer bigger-ticket purchases.

Premiumisation

Despite the inflationary pressures of 2022, the process of premiumisation is likely to continue into 2023. This trend is particularly evident in China and the Asia-Pacific region, as well as in markets across the globe, as brewers focus on selling their higher-end brands.

No- and Low-Alcohol Beers

The no-alcohol segment is expected to make further gains in 2023. Widening availability, increased marketing support, innovation, better-tasting products and rising consumer engagement are driving opportunities for the segment. Technological advances will also mean that more draught no-alcohol beers will be available in 2023.

Sour Beers

The rise of sour beers has been steady since 2020 and it looks set to continue in 2023. The unique, fruity yet tart flavour profile appeals to drinkers who would usually opt for cocktails or wine.

High ABV

Beers with a mild price point and a high ABV (around 7-9%) are going to be popular in 2023. The popularity of IPAs, which typically have higher ABVs, has been inconsistent, but it seems they will maintain steady sales in 2023. Consumers who enjoy IPAs are now looking for the strong and unique flavours of double IPAs that also contain a high ABV, sometimes over 9%.

Seasonal Beers

Seasonal beers are also set to be a hit in 2023, with consumers going wild for their favourite brands' seasonal selections. Oktoberfest brews, pumpkin-infused options and season-specific fruity or floral flavour notes will all be popular.

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