NIQ: Average Case of Craft Beer +3.6% in 2023; IPA Holds 26% Share of Craft Dollars

Data: FMBs Lead at C-Store, Other RTDs Face Big Opportunity

The price of beer increased across the board last year. The average case price of craft beer in 2023 increased +3.6% year-over-year, to $42.41 across all outlets, according to NIQ data shared by Bump Williams Consulting (BWC).

The average price for a case of craft beer in 2023 was $4.35 more than in 2020 ($38.06) and $1.49 more than 2022 ($40.92).

Within craft’s four price tiers – “craft” ($39.99 and under), “premium craft” ($40-$49.99), “super premium craft” ($50-$59.99), and “apex craft” ($60 and above – just three price ranges increased sales year-over-year.

Premium craft, which accounts for 46% share of total craft dollars and the most brands of any price range (around 5,900) and includes expanded IPA families and non-alcoholic craft beer, increased dollar sales +3.2%.

Two apex craft price ranges ($80-$89.99 and greater than $100), which includes local IPAs, barrel-aged stouts and seasonal/special releases, increased +1.6% and +5.2%, respectively.

All other craft price tiers declined, compared to a year ago:

  • Under $20 (-4.2%), which accounts for less than 1% share of total craft dollars;
  • $20-$29.99 (-7.6%, around 1% share of total craft dollars);
  • $30-$39.99 (-2.9%), the second largest share of total craft dollars (36%) and accounts for around 2,600 brands;
  • $50-$59.99 (-0.9%), which makes up 8% share of craft dollars and around 3,000 brands;
  • $60-$69.99 (-6.1%), which accounts for 3% share of craft dollars and around 2,100 brands;
  • $70-$79.99 (-4.5%), which accounts for 2% share of craft dollars and around 1,500 brands;
  • $90-$99.99 (-8%), which makes up 1% share of craft dollars and around 500 brands.

Nevertheless, the average price paid per unit stayed essentially flat (+0.5%) compared to a year ago, BWC noted. The average unit price for craft in 2023 was $9.84, $0.04 more than 2022 ($9.80) and $0.40 more than 2020 ($9.44).

IPA Dominates; Higher ABV IPAs and Hazies Growing

Traditional IPA remains the largest style by far, holding a 25.9% share of craft dollars (-0.1% share points), with sales of $1.487 billion (-0.7% versus a year ago).

Outside of IPA, five other top 10 craft styles shed sales in 2023. Seasonal, the second best-selling craft style, declined -8.2% in dollar sales, to $551.23 million (-$48.9 million compared to 2022). Seasonals lost -0.8% share points, dropping to 9.6% share of craft dollars.

Other styles to decline in 2023 include:

  • Witbier/Belgian wheat/white (-6.8%, to $359.5 million);
  • Assorted (-7.1%, to $258 million);
  • American pale ale (-2.4%, to $239.1 million);
  • And American wheat (-15%, to $124.36 million).

The four craft styles to grow dollar sales in 2023 include:

  • Imperial/double/triple IPA (+10.1%, to $532.2 million, +$49 million compared to a year ago);
  • Hazy IPA (+1%, to $497.2 million, +$4.9 million);
  • Blonde ale/golden ale (+5.7%, to $279.59 million, +$14.957 million);
  • Hazy imperial/double/triple IPA (+101.8%, to $195.3 million, +$98.528 million).

Imperial/double/triple IPA gained +0.9% share points, to 9.3% share of craft dollars, while hazy imperial/double/triple IPA gained +1.7% share points, to 3.4% share of craft dollars.

Looking at alcohol by volume (ABV), the only ABV to grow in sales last year was 9% ABV beers (+34 dollar sales, to $564.45 million, +143.22 million). Non-alcoholic beers (less than 0.5% ABV), increased sales +73.3%, to $148.46 million (+$62.8 million). All other ABVs declined in sales, including the five top-selling ABVs:

  • 5% ABV, -5.3%, to $1.057 billion;
  • 6% ABV, -4%, to $928.87 million;
  • Assorted, -5.6%, to $913.4 million);
  • 4% ABV, -4.3%, to nearly $885.8 million);
  • And 7% ABV, -1.8%, to nearly $750.5 million).

Hazy IPA gained +0.1% share points, to 8.7% share of craft dollars, while blonde ale/golden cale increased +0.3% share points, to 5.7% share.

Other notable craft styles outside of the top 15 to increase dollar sales in 2023 include:

  • American lager (+3.6%, to nearly $97.5 million);
  • Pilsner/pilsener/pils (+1.8%, to $82.1 million);
  • And fruit/vegetable beer (+11.5%, to $37.17 million).