Sorcha Connaughton, Library Assistant, Bord Bia – Irish Food Board

The market for craft beer is well established in the US, Mintel estimates sales of craft beer to grow by 22%, and continued growth through 2020, though at a slowing rate. In addition, Multi Outlet sales of imported beer grew by 7% in the 52 weeks ending Oct. 4, 2015. Alongside this growth is a change in consumption habits. US consumers are turning away from common domestic beer, developing a taste for craft and imported beer. They are willing to pay more for a premium product, while drinking less in volume terms. Euromonitor International highlights that these shifts are most recognisable within domestic mid-priced lagers and domestic economy lagers, which exhibited total volume declines of 1% and 3%, respectively, in 2014. BMI Research also emphasise that craft beer volumes will continue to grow strongly as the mainstream beer industry declines. (See below graph.)They expect craft brewers and micro brewers to account for a growing share of the market in value terms as larger players focus on high margins.

Competition in the market will become increasingly tough. The Financial Times estimates that the craft beer industry is worth an estimated $14 billion in annual sales. According to a recent report by the Brewers Advisory, brewers should target Irish Americans as this group are more likely to buy Irish beer than non-Irish. New York and Boston would be cities that have a high concentration of people with Irish ancestry and a high concentration of Irish pubs. A number of Irish brewers are currently exporting to the US, some focusing on on-trade channels others connecting with craft breweries in the US and creating partnerships that are beneficial to both sides. Concentrating on developing a unique style, experimenting with unusual flavours, and establishing an interesting brewery story are important if you want your brand to stand out! The Brewers Advisory also highlights that the market wants craft beers, not more Irish beers, so be a craft brewery first, which happens to come from Ireland.

For brewers wishing to enter the market, specialised craft beer retailers and Irish pubs in cities with a strong Irish connection are a good place to start!

For more information contact Sorcha.connaughton@bordbia.ie