The light and imported beer categories continue to drive growth in the US beer market. Since 1998, the beer market only increased by a modest 1%. Over the same period, however, consumption of light and imported beer has risen by over 4% and almost 9% respectively, according to data released by analyst Canadean.
“With premium beer, popular beer and ice beer declining in the USA, much of the market’s growth has been driven by imported beer,” Canadean said. “The fact that there is virtually no licensed production of foreign brands has helped imported beer to grow strongly. Imported brands from neighbouring Mexico and Canada, in particular, appeal strongly to American consumers and these two countries account for almost 60% of all beer imports.”
Light beers, which are low in calories but not lower in alcohol, are easily the biggest sector in the beer market in the US and are growing steadily with many light versions of major brands now outperforming their “regular” counterparts.
Second placed premium beer has come under increasing pressure from imported and light beers and has seen its share of the market eroded to less than 20%. Conversely, significant new product development activity helped consumption of super-premium and speciality beers to grow by over 7% in 2002.
Dazzling performance by smaller names
Although still comparatively small, craft beer has become one of the market’s most vibrant sectors. Mainly produced by microbreweries and brewpubs, the popularity of craft beer has grown strongly with 2002 consumption 20% greater than it was in 1998.
“Over the last three to four decades, the US’s beer industry has been through a period of intense consolidation, resulting in the emergence of a small number of “brewing giants”. Furthermore, the five best selling brands now account for almost two thirds of all beer consumed. It is also worth noting that vertical consolidation is not possible due to the USA liquor industry’s unique regulations that dictate that producers, wholesalers and retailers must be independent from each other. Consolidation has also continued amongst wholesalers, albeit at a slower pace than previously,” says Canadean.
The US economy remains sluggish and economic forecasts are gloomy. However, the beer industry could receive a timely boost from proposed legislation that may double the excise tax on FAB’s and prevent these products being sold in many outlets. Canadean expects total beer consumption to increase by just under 1% in 2003.
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