While it might seem like brew pubs are bustling after a day at work and everyone is reaching for the latest IPA, a troubling trend has been spotted for the hops industry as beer drinking in America fell to the lowest level in a generation, according to a new report.
The industry group Beer Marketer’s Insights shared that consumers are choosing other forms of alcohol -- like cocktails -- or not drinking at all.
“It was a tough year for beer,” David Steinman, BMI vice president and executive editor, shared with NBC News.
Steinman says that beer shipments are on track to fall below 200 million barrels for the first time since 1999.
This follows an overall trend, as a Gallup poll from 2021 found that the average number of drinks consumed had fallen from 4.8 to 3.6 since 2009. The number of respondents who said they drink also fell from 65% to 50%.
While it may not have been the only beer brand to see a decline, the boycott of Anheuser Busch after its sponsorship with transgender influencer Dylan Mulvaney did make a dent in the decline of beer drank this past year, Steinman said.
Anheuser Busch and other domestic brands have seen a long-term decline for a while now, according to Steinman, as Bud Light, Miller Light, Coors Light, and more drop in popularity among drinkers.
Now, experts are watching the beer industry face off against new alcohol products from nontraditional producers, according to National Beer Wholesalers Association vice president of analytics Lester Jones.
“For example, some of the world’s largest soft drink and energy companies introduced sugar-forward alcohol beverages to the market, all of which are vying for the same consumer occasions as traditional malt- and hop-forward products,” Jones shared with NBC News.
With domestic beers declining, others are surging, as Modelo Especial became the top beer in America in 2023, according to a report from Reuters.
Still, despite fewer Americans drinking beer, Steinman says that around the world, the industry remains strong.
“With prices going up, dollar sales have continued to grow, and profits have been rising,” Steinman said.