The exclusive Draft Beer Report provides a comprehensive guide to the latest trends and developments in the sector, which is now worth $21.8bn a year. There are currently around 1.5 million draft lines in the US—more than triple the number since the early 1980’s.
Data from CGA by NIQ’s market-leading suite of On Premise measurement solutions shows draft attracts 52.3% of all out-of-home beer volumes in the US—compared to packaged beer’s share of 47.7%—and delivers a significantly higher average value velocity. High consumer demand has led to an 8.1% rise in draft beer’s distribution points in the last 12 months—more than triple the 3.5% increase of packaged. While draft sales by value fell by 2.0% in the last year, this is lower than the 2.6% drop in packaged.
The expert research from CGA by NIQ and Draftline Technologies provides many more insights into the draft beer category in the US. They include:
- Craft is the most popular choice of draft beer for US consumers, taking 47.2 cents in every dollar spent on draft in the last 12 months
- Domestic premium and super-premium brands share 32.8% of all draft sales—but imports have increased their share in recent months
- Mexico and Ireland are the top two countries of origin for draft beer outside the US
- Low and no alcohol beer has generated year-on-year sales growth of 25.9%, as some consumers seek healthier options out-of-home.
CGA by NIQ’s consumer insights meanwhile identify the key demographics of the 30 million people who have bought draft beer in the US On Premise over the last quarter. Two thirds (66%) identity as male, while half (51%) are aged 55 or over. These drinkers are valuable visitors to the On Premise, spending an average of $160 on eating and drinking out—$11 more than the average consumer.
Elsewhere, the Draft Beer Report sets out the top reasons drinkers choose draft beer and highlights likely areas for growth in 2025. It also features a case study of the beer market in California, where sales of both draft and craft beer substantially outperform other states and segments. The Californian Craft Brewers Association estimates the state is now home to more than 1,100 craft breweries and produces around 3.5 million beer barrels a year.
Jennifer Hauke, Founder and Principal, Draftline Technologies, said: “We all realize there is no substitute for quality, and that as an industry we strive to dispense the “best of the brewer’s art.” This is what makes draft beer unique as we know that dispensing quality delivers the ultimate sampling tool and the most satisfying on-tap experience. Draft Beer also contributes greatly to the overall health of the beer category by positively influencing Off Premise sales – remaining as one of the few products where loyalty to a brand still matters.
“Draftline data reinforces the significance of draft beer as a strategic product. Draft beer drinkers will go to great lengths to get their favorite beer on tap. For the On Premise operator, the influence of “what’s on tap” speaks to the consumers preference for draft beer. For the draft beer loyalist, where to go for their favorite pint is greatly influenced by the types and styles of draft beer featured on tap. When it comes to the strategic value of draft beer, the keg package is eco-friendly, and draft beer within the On Premise is the clear winner in dollar velocity. These benefits, only reinforces the significance of draft beer and its long-term influence on brand sales in the On Premise account.”
Jennifer Hauke
The report On Premise Draft: Investing in Brand Equity is now available to download, here.
CGA by NIQ’s On Premise Measurement and consumer research solutions provide many more insights into consumers’ engagement and purchasing habits and trends across the US On Premise, with expert analysis of categories, occasions and much more. To learn more, click here, and reach out to the team here.
