US beer consumption hits lowest level in a generation in 2023
- Beer shipments were set to dip below 200 million barrels
- The industry faced tough competition from new alcohol products
- New entrants were competing for the same consumer base as beer products
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(NewsNation) — In 2023, the United States witnessed the lowest level of beer consumption in decades, marking a significant shift towards alternative alcoholic beverages or complete abstinence, according to reports by industry group Beer Marketer’s Insights (BMI).
David Steinman, BMI vice president and executive editor, described it as a challenging year for beer, noting that beer shipments were set to dip below 200 million barrels for the first time since 1999, according to NBC News.
Anheuser Busch led this decline, contributing to the long-term downward trend of domestic premium brands, including Bud Light, Miller Light and Coors Light, and facing a setback in the hard seltzer category where it had previously dominated.
While Anheuser Busch made headlines due to a controversial sponsorship with transgender influencer Dylan Mulvaney, Steinman emphasized that the overall decline in consumption couldn’t be solely attributed to this controversy.
The industry faced tough competition from a plethora of new alcohol products, including offerings from unconventional producers such as major soft drinks and energy companies.
Lester Jones, vice president of analytics and chief economist at the National Beer Wholesalers Association, pointed out that these new entrants were competing for the same consumer base as traditional beer products.
Despite the decline in overall volume consumption, major beer makers proved financially resilient, thanks to rising prices that outpaced broader inflation. Consumers also gravitated towards more expensive beer brands, with Modelo Especial claiming the top spot as America’s favorite beer in 2023.
While beer sales remained robust in other parts of the world, the U.S. beer industry faced challenges, including the waning impact of the craft beer boom from the 2010s. The oversaturation of the alcohol market with numerous product varieties posed a potential obstacle as consumers might feel overwhelmed by the abundance of choices.