Off-premise dollar sales of beer topped $47.9 billion in 2023, according to market research firm NIQ. Beer accounts for half of total alcohol off-premise dollar sales, which reached $89.8 billion last year, a +1.1% increase compared to 2022.
Although dollar sales increased for beer (+1.4%), volume declined -3% compared to a year ago. Beer was boosted by the convenience channel, with sales +3.1% year-over-year (YoY), whereas sales in the food channel declined -0.4% and drug store sales declined -6.4%. Meanwhile, spirits increased both dollars (+2.7%) and volume (+5%), while wine declined in both dollars (-1.4%) and volume (-4.5%) across all channels. The usual caveats to this data apply: Scan data is only one piece of the bev-alc data puzzle.
The average case price of beer increased +$1.30 in 2023, to $29.84. Each segment recorded a price increase, with the largest increases in cider (+$2.18, to $47.93 per case, the highest price in the beer category) and hard seltzer (+$2, to $38.06).
Several segments increased case prices more than $1, including flavored malt beverages (+$1.56, to $39.88 per case), craft (+$1.49, to $42.41), imports (+$1.27, to $36.33), premium regular (+$1.04, $24.85) and malt liquor (+$1.55, to $22.03).
Under $1 per case increases included premium light (+$0.88, to $24.16), below premium (+$0.88, to $18.93) and domestic super premium (+$0.78, to $30.69).
NIQ notes that beer category sales in off-premise retailers peaked during the July 4 holiday and were on par with 2022 numbers through the end of the year.
Imports and FMBs Only Segments to Post Dollar and Volume Gains
In NIQ’s data, only imports and FMBs increased both dollar sales and volume. Imports posted growth of +9.4% in dollars and +5.6% in volume, while FMBs grew dollars +18% and volume +13.3%. Cider and below premiums both increased dollar sales (+1.9% and +1.7%, respectively), while shedding volume (-2.7% and -3.1%, respectively).
Hard seltzer posted the biggest YoY declines, -16.2% in dollars and -20.6% in volume. Other segments in decline included:
- Craft (-0.3% dollars, -3.8% volume);
- Domestic super premium (-1.8% dollars, -4.3% volume);
- Premium regular (-0.7% dollars, -4.8% volume);
- And premium light (-3.4% dollars, -6.9% volume).
At the end of the year, segments in order of dollar share were:
- Imports (23.7%, +1.7%);
- Premium light (19.4%, -1%);
- Craft (11.8%, -0.2%);
- Below premium (11.2%, flat);
- Domestic super premium (9.9%, -0.3%);
- FMBs (9.6%, +1.3%);
- Hard seltzers (7.2%, -1.5%);
- Premium regular (5.3%, -0.1%);
- Cider (1.1%, flat);
- Malt liquor (0.8%, flat).
As for non-alcoholic (NA) adult beverages, off-premise sales across beer, wine and spirits increased +35%, to $565 million in 2023, the firm reported.
RTDs Dominate Innovation in 2023
NIQ added that half of innovation dollars were driven by ready-to-drink (RTD) launches. Total alcohol innovation sales reached $2.61 billion in 2023, a -13.7% decline compared to 2022.The number of innovation items overall declined -17.4%, to 3,881 products; 71% of those items were line extensions of existing products.
Beer accounted for 26% of innovation dollar sales, trailing just RTDs, which accounted for half of innovation dollars. The beer category accounted for 16% of innovation items, trailing all other segments with spirits (33%) leading the way, followed by RTDs (26%) and wine (25%).
Sales of RTDs are also approaching $11 billion, topping $10.7 billion last year, and accounting for 12% share of total alcohol.
Key State Performances
California led total alcohol sales, with off-premise scans across beer, wine and spirits reaching $14.1 billion (+0.9% compared to 2022). Alcohol sales in Texas increased +2.8% versus a year ago, to $11.8 billion.
The rest of the top five includes, in order:
- Florida, with $9 billion in sales (+0.8% YoY);
- New York, with $6.5 billion in sales (+1%);
- And New Jersey, with $3.5 billion in sales (-1.6%).
Trends to Watch in 2024
Looking ahead to this year, NIQ is tracking four trendlines:
- Shifting shopper behaviors toward convenience, wellness and sustainability;
- Dynamic demographics with the increase in Gen Z consumers and the “graying of America;”
- Psychology of premiumization, through premium brands and experiences in the on-premise;
- And flavor-forward offerings across categories.
Read more on NIQ’s predictions from coverage of the firm’s end-of-year webinar.