USA: Domestic Beer in the US is facing increasing competition from imported beer

Research and Markets has announced on January 10, the addition of Domestic Beer in the United States to their offering.

The light/low calorie beer segment now comprises the majority of domestic beer sales, accounting for all of the growth in the market. When factoring for inflation, domestic beer sales overall gained only 2% in the five years preceding this report. The regular beer and non-alcoholic beer segments have both experienced sales declines. In total, the off-premises market for domestic beer was estimated at $33.5 billion in 2004.

The market faces increasing competition from imported beer, wine, and spirits. Per capita consumption of beer is falling, while wine and spirits are gaining in popularity. According to consumer research conducted for this report, one fifth of non-beer drinkers prefer spirits, higher among women and younger adults. More than 25% of non-beer drinkers prefer wine (again higher among women and younger adults).

The future success of the domestic beer industry will depend on its ability to rekindle consumer interest in its products and compete more effectively against the wine and spirits industries. While mass-market beers will maintain a strong following, sales among the core beer drinkers are unlikely change significantly. Manufacturers need to explore niches in the market with potential for good margins, and adjust to changing U.S. demographics.