Through 2023, levels of US beer production and removals – beer shipped for consumption or sale – are expected to remain near 2018 totals, according to Beer: United States, a report recently released by Freedonia Focus Reports. Some stability will result from an improving economy.
Expansion in the population aged 25-44, the dominant consumers of beer, is expected to support segment growth.
Craft and flavored beers will continue to account for most of the volume growth of production and removals. However, faster gains will be restrained by a high level of competition from international brewers and other alcoholic beverages such as hard seltzers.
Market maturity will prevent faster growth. While the popularity of craft beers will drive further gains in value terms, the higher price of such products will restrain volume growth.
Slight demand advances for beer packaged in metal cans will reflect the ongoing cannibalization of the glass bottle segment, driven by improved public perception regarding the quality of canned beer, partially a consequence of increasing adoption of cans by craft beer makers.
However, the recent US tariffs on aluminum have negatively affected producers of canned beer by increasing the price paid for aluminum cans, reducing the overall profit margin. Furthermore, some brewers have passed this increased price on to consumers, limiting demand growth.