More than 4.043 million barrels of beer were imported into the U.S. in May, marking the first time more than 4 million barrels were imported in a single month, according to Beer Institute (BI) chief economist Andrew Heritage, citing the latest report from the Department of Commerce.
May import volume increased +9.2% year-over-year (YoY). Year-to-date (YTD), beer imports have increased +8.9%, to nearly 17.92 million barrels, an increase of nearly 1.5 million barrels versus the same five-month period in 2023.
No. 1 importer Mexico increased beer imports to the U.S. by +10.2% YoY, an increase of nearly 10 million barrels versus May 2023. No. 2 Netherlands recorded a YoY decline (-1.9%), while No. 3 Ireland increased imports +82.4% – an increase of nearly 1 million barrels.
All three countries have increased imports YTD: Mexico +11.3%, Netherlands +1.3%, Ireland +3.7%.
Heritage also highlighted the growth of Germany, the fifth largest country by imports YTD, which increased import barrelage +30.8% YoY and +4.7% YTD. No. 6 Italy also saw a YoY boost (+56.4%).
Meanwhile, domestic tax paid shipments increased +5.8% in May, to an estimated 13.5 million barrels, returning to the black after two months of YoY declines, Heritage reported, citing estimates from the Alcohol and Tobacco Tax and Trade Bureau (TTB).
Declines from the past two months were adjusted, as the TTB continues to receive tax paid figures. March was originally reported as declining -13.6%, but declines were actually steeper, at -16.4%, according to the latest report. April declines were adjusted from -4.3% to -4.2%.
“The beginning of summer selling season started with a strong month for the beer industry in May,” Heritage wrote. “Total supply (domestic plus imports) for the industry grew +6.6% in May and is now in positive territory for the year, up +0.7%.
“After domestic production dipped in March and April, May grew by 743,000 barrels, or +5.8%,” he continued. “All signs are pointing to stronger industry health as beer volume accelerates in the critical summer months.”
YTD domestic tax paids declined -1.4% through May, to an estimated 61.66 million barrels, a decline of nearly -872,000 barrels versus the first five months of 2023. The strong May shipments helped improve YTD trends by one percentage point, with a decline of -2.4% YTD recorded in the BI’s April report.
May state shipments increased +1.6% YoY, to more than 18 million barrels. YTD shipments through May increased +0.6%, to more than 78.76 million barrels, an increase of about 500,000 barrels versus the first five months of 2023.
Several large beer volume states recorded YoY increases in May, including Texas (+8.4%, to 1.85 million barrels), Illinois (+2.6%, to 752,581 barrels), Florida (+1.6%, to 1.3 million barrels) and New York (+0.4%, to 896,203 barrels).
California, the second largest state by beer volume, recorded a -2.5% YoY decline in shipments, to nearly 1.8 million barrels. However, the state remains in the black YTD (+3.6%). Texas (8.9 million barrels) is now ahead of California (8.1 million barrels) by about 800,000 barrels YTD.
Heritage noted that “strong industry production was not met with similar sales-to-consumer growth” in previous months, but “the story is different over the past month as scans are looking more favorable for beer.”
“Beer Institute’s depletions data for May show a -0.8% decline for the industry, but the on-premise grew +0.7% in May,” Heritage wrote. “Back-to-back months of the on-premise gaining share indicate there is a willing beer consumer in the early summer months.
“As brewers report stronger shipments volume and wholesalers continue to report growing inventory levels, the foundation is set for a summer selling season that grows sales volume for the industry,” he continued.