Us Beer Consumption: A Year In Review

The US beer market has been dynamic over the years, with production numbers peaking in 1990 and a recent decline in 2023. While beer remains a popular beverage, its market share has decreased due to consumers shifting towards spirits and, to a lesser extent, wine. The price of beer has also fluctuated, with the average cost of a six-pack being under $2 in the 1950s and 1960s, and the price of a keg being $3.55 in the 1940s. Climate change and droughts may also impact beer prices, as barley production is expected to decline.

Beer prices in the US

The price of beer in the US varies depending on the brand, type, and location of purchase. Typically, domestic beer ranges from $1 to $1.50 per can or bottle at retail stores, while imported or craft beer can cost between $2 and $4. For example, a 12-pack of Budweiser (12 oz bottles) costs $12.98, while a 12-pack of Heineken costs $16.98.

At bars, the price of beer can range from $4 to $7 for a typical domestic beer, with some places charging higher prices for craft or imported beers. The cost of a beer at a bar is influenced by factors such as the bar's location and ambiance, with prices generally being higher in more upscale establishments.

It is worth noting that beer prices in the US have fluctuated over the years due to various factors, including supply and demand, climate change affecting barley production, and changing consumer preferences. Additionally, state beer and liquor taxes can also impact the price of beer, leading to variations in prices across different states.

Beer production in the US

Beer is the most popular alcoholic beverage in the United States, accounting for about 85% of the volume of alcoholic beverages sold annually. In 2023, the US beer industry shipped 192 million barrels of beer, which is equivalent to more than 6 billion gallons or 2.6 billion cases of beer.

The US beer market is worth $117 billion, with craft beer sales accounting for 24.7% of this figure. Craft beer sales have been increasing, and in 2023, they rose by 3% to $28.9 billion. However, overall US beer production and imports were down 5% in 2023, with craft brewer volume sales also declining by 1%.

The number of craft breweries in the US has risen consistently over the past ten years, from 3,162 in 2013 to 9,906 in 2023. While craft beers still make up a small portion of total beer production (approximately 3% in 2023), their popularity has significantly increased in recent years. Some of the most popular craft breweries are D. G. Yuengling and Son Inc. in Pottsville, Pennsylvania; Boston Beer Co. in Boston, Massachusetts; and Sierra Nevada Brewing Co. in Chico, California.

The state that produces the most beer is Ohio, with 4.5 million barrels produced in the first three quarters of 2023 alone across more than 987 breweries. California had the most craft breweries of any state in 2023, with 987, followed by New York with 539, and Pennsylvania with 530.

Beer sales in the US

In 2023, approximately 165 million barrels of beer were produced in the US, a decrease from previous years, with peak production in 1990. On-premise retail dollar sales for beer in the US amounted to roughly 45.6 billion US dollars in 2022, while off-premise sales reached over 69 million. On-premise locations include restaurants and bars, while off-premise establishments refer to grocery and liquor stores.

The price of beer in the US has also been variable. From the 1800s to 1920, the beer industry was booming with thousands of small breweries. However, Prohibition and the subsequent Great Depression severely impacted the industry, with only a few hundred breweries remaining operational. Budweiser capitalised on the situation by producing cheap beer, introducing the six-pack, and making beer accessible at bars and in homes.

The average price of a six-pack of beer was less than $2 throughout the 1950s and 1960s, which, adjusted for inflation, is cheaper than beer today. Beer consumption in the US tends to fluctuate with beer prices. Per-capita consumption peaked in the 1980s when beer prices were at their lowest, with Americans consuming 300 beers on average annually.

Beer consumption in the US

Beer is as American as apple pie. When the Pilgrims settled in what would become the United States, one of the first things they built was a brewery. Since then, the beer industry has gone through many changes, including a period of prohibition and the rise of craft breweries.

In 2023, approximately 165 million barrels of beer were produced in the United States, down 5% from the previous year. Beer production in the US peaked in 1990 and has generally decreased in recent years. Retail dollar sales of craft beer increased by 3% in 2023, accounting for 24.7% of the US beer market.

The price of beer has fluctuated over the years, and so has consumption. Beer consumption in the US tends to fluctuate with beer prices, peaking in the 1980s when prices were at their lowest. In 2017, annual per capita beer consumption among Americans 15 and older stood at about 256 12 oz. beers.

The price of beer is influenced by various factors, including the impact of climate change on the supply of barley and the changing preferences of drinking-age Americans. A warming planet could lead to higher beer prices as global warming and droughts could result in a decline in barley production.

The history of beer in the US is a fascinating one, from the early days of the Pilgrims to the present, with its diverse range of craft breweries and changing consumption patterns.

Beer advertising in the US

In 2022, Constellation Brands was the top advertising spender among beer manufacturers in the US, spending just over $371 million to promote its brands, including Corona Extra and Modelo Especial. Anheuser Busch followed, with an investment of $335 billion in measured media. Anheuser-Busch InBev, also known as AB InBev, is a major beer advertiser in the US and the producer of Budweiser, the highest-valued beer brand worldwide in 2021. Budweiser's commercials, which often include its mascots, the Clydesdales, have been aired during the Super Bowl since the competition's first edition in 1967.

The US Beer Institute has a self-regulation code governing the content of beer advertising, which includes guidelines such as not suggesting that any laws applicable to the sale and consumption of beer should not be complied with, adhering to contemporary standards of good taste, and reflecting the fact that brewers are responsible corporate citizens. However, an empirical evaluation of the US Beer Institute's self-regulation code found that between 35% and 74% of beer ads broadcast during the National Collegiate Athletic Association basketball tournament games between 1999 and 2008 had code violations. The guidelines most likely to be violated included the association of beer drinking with social success and the use of content appealing to persons under the legal drinking age.

Overall, beer advertising in the US has played a significant role in shaping the industry and consumer preferences, with creative and memorable campaigns that have left a lasting impact on the American beer landscape.

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