Although major beer manufacturers still make up a fast majority of sales around the world, craft beers are becoming a player in the industry. With craft beers often taking major awards and creating dedicated customers who are willing to pay a little more for a handcrafted product, knowing the demographics of those who drink this product will help you identify new potential markets.
49% of Millennials say that craft beers appeal to them, which is the largest percentage of any target demographic.
Although other groups find less appeal with craft beer, the demographics are still strong in every age group, including the World War II generation where 22% of respondents say craft beers appeal to them. That makes targeting this niche group in every demographic and important aspect of virtually any business.
Three Fast Facts About Craft Beer Drinkers
1. The discovery of new beers is a popular activity for 93% of people who prefer to drink imported beer.
2. 38% of Hispanic consumer will turn to a craft beer first.
3. 84% of craft beer consumers prefer to choose what they drink based on what season it happens to be.
Takeaway: Although mass-produced beer will always be a standby option for everyone, craft beers are a way to add a sense of value to the drinking experience. They may cost more, but the craft beer provides more overall value to the consumer because of it being brewed in smaller batches with ingredients that would be considered premium in comparison to the national brand. It’s all about perception and trying new things. Even 84% of people who call themselves craft beer drinkers enjoy discovering a new beer to drink.
Marketing Drives The Demographic
1. 73% of craft beer drinkers say that they know exactly what kind of beer they are going to buy even before they go to the store.
2. Only 33% of craft beer drinkers ask someone for advice regarding which beer they should try if they’ve never had one before.
3. 45% of craft beer drinkers say they would try different brands if they had access to more information about them.
4. Most craft beer sales occur at either a liquor store or a package store rather than a big box discount retailer or a grocery store.
5. 40% of GenX’ers say that they prefer having a good craft beer over a good national brand, although they are the most likely demographic to put imported beer and craft beer into the same value category.
6. Those aged 21-35 are more likely to show a specific preference for a single craft beer over those aged 36-47.
7. Craft beers have average 10.9% growth in the last 10 years.
Takeaway: Every product line is seeing that customers are demanding more variety to fit specific tastes instead of settling for one basic product. That’s why you see more flavors of soda available and that’s why craft beers are showing a strong market share in many communities. Craft beer drinkers also have an advantage thanks to the fact that many pups and microbreweries are pairing their products with world-class food options so that the value of the craft beer brand becomes uniquely enhanced – something that a national brand just can’t do.
Why You Should Pay Attention to Craft Beers
1. Craft brewers provide over 100,000 jobs in the United States alone.
2. Growth in the craft beer market was 20% in the last year alone when looking at overall dollar shares.
3. Craft brewers sold over 15.6 million barrels of beer in 2013, which was 2.4 million more barrels than the year before.
4. There are currently more than 2,700 craft breweries in the United States alone.
5. The total market share in sales for craft beer was $14.3 billion in 2013.
6. Craft breweries make up 98% of the total breweries in the United States.
7. The amount of active breweries that were active at some point in the US was the highest total seen since the 1880’s.
Takeaway: Considering that one barrel of beer equals 31 gallons, that’s a lot of craft beer that drinkers are consuming every year. With a marketing pitch that encourages people to support their local breweries and being smart about how showing consumers that local dollars spent locally only benefit the economy of the community, it’s only a matter of time before the craft beer demographics dominate those that prefer national and import brands of beer.
How Bright is the Future of Craft Beer?
1. The beer industry has continued to lose market shares to wine and spirits since 2005.
2. Since the year 2000, 5% of people have transitioned into a preference for spirits over beer.
3. The estimated servings of beer is expected to drop by over 2 billion, while the estimated servings for spirits is expected to increase by over 2 billion.
4. Outside of imported beer and super premium domestic products, craft beer is the only demographic that has shown an increase in sales over the last decade.
5. Five out of the Top 10 fastest growing beer brands are craft beers.
6. The top reason why craft beer drinkers prefer them is because of better flavors and higher alcohol content levels.
7. The vast majority of craft breweries in the United States are in California, Oregon, and Washington State.
Takeaway: The growth of this industry might have started along the West Coast, but it is becoming a national movement. Michigan saw a 20% increase in the number of breweries that were active and Colorado actually has more breweries that are active than Oregon does. The reason why there are so many successes being seen in this industry is that craft brewers are willing to experiment with new flavors more than national brands are and this drives innovation. Even some of yesterday’s top craft beers are becoming the hottest new national brands and that means that the craft beer demographics are going to have better access to their favorite brews.