Those are among the top insights from the exclusive Draft Beer Report from Draftline Technologies and CGA by NIQ, which is available now. The research delivers expert analysis of trends in draft beer sales and consumers’ On Premise preferences, helping operators and suppliers adapt to changing demand and optimize sales and promotional activity.
The report shows the draft beer market is now worth $21.8bn a year in the US, delivered via 1.5 million draft lines—more than triple the number in the early 1980s.
An estimated 30 million consumers have bought draft craft beer in the US On Premise in the last quarter—but who are they, and what do they want?
Here are five top takeaways.
1 A variety of demographics
While older men make up a large proportion of draft beer consumers, the market has a wider appeal than sometimes realised. Two thirds (66%) identify as male and half (51%) are aged 55 or over, but this leaves a substantial number of female and younger drinkers for venues and draft brands to target.
2 High-value consumers
Draft beer drinkers are some of the On Premise’s most valuable consumers. Nearly two thirds (63%) go out to eat at least weekly—3 percentage points more than the all-consumer average—and they spend an average of $160 per month on eating and drinking out, which is $21 more than the average consumer. This heavy engagement and free spending can make draft beer consumers lucrative guests.
3 Regular restaurant-goers
While bars are a big source of draft beer sales, some of the top growth opportunities are in restaurants. More than two in five (43%) draft beer consumers have been to a casual dining chain restaurant in the last three months, while 38% and 33% have been to independently-owned and fast casual restaurants respectively. This makes them the top destinations ahead of sports bars, neighborhood bars and tap rooms.
4 Motivated by taste and freshness
Draft has a 52% share of beer sales in the US and has some powerful advantages over packaged alternatives. Well over half (57%) choose draft because they prefer the taste, while 41% do so because it’s fresher. A preference for drinking from a glass (38%) is another big factor.
5 An interest in health and ethics
Issues around health, sustainability and ethics are increasingly important to draft beer consumers—especially younger ones. A fifth (21%) of those aged 21 to 34 say a healthy lifestyle is important to them, which has helped to lift sales of no and low alcohol draft alternatives by 16% year-on-year. Meanwhile, one in eight (12%) say an environmentally-friendly lifestyle is important to them, and draft can be an attractive option because it is served in reusable glasses rather than single-use bottles or cans.
The Draft Beer Report from Draftline Technologies and CGA by NIQ has much more analysis of the US On Premise, including trends in sales, distribution, channels, segments, styles and countries of origin. It also features a case study of the market in California, where sales of draft beer outperform other states, plus tips for growing sales further.
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.
