The latest On Premise Impact Report from CGA by NIQ reveals positive consumer trends for early 2025, offering valuable insights for craft brewers seeking to stay competitive in an ever-changing hospitality landscape. Although shifts in consumer behavior are evident, growth opportunities remain robust, especially for those who can adapt to evolving demands.
Key Findings from the Report
High Visitation Rates: More than 75% of consumers dined out in January, with 50% of them visiting bars for drinks. This behavior is expected to persist in 2025, emphasizing the continued importance of on-premise venues in consumers’ lives.
Health-Conscious Choices: A rising number of consumers are making health-conscious decisions, with one-third opting for healthier food and drink choices. Additionally, 25% of consumers plan to moderate alcohol consumption. For craft brewers, offering lower-ABV or non-alcoholic options presents a strong opportunity to cater to this trend.
The Premiumization Trend: Around 20% of consumers are expected to choose higher-quality food and beverages in 2025. This preference for superior experiences presents an opportunity for craft breweries that focus on quality and unique product offerings.
Value for Money Remains Essential: Despite a willingness to pay more for premium experiences, value continues to be a crucial consideration. Nearly half of on-premise visitors prioritize good value, while 30% actively seek out deals and promotions.
Appeal of Food and Drink Pairings: Offering complementary food and drink pairings is another avenue for craft brewers to engage consumers, potentially attracting more customers during regular visits.
Consumer Satisfaction and Expectations: While consumer satisfaction with on-premise experiences remains high—90% of survey participants express overall satisfaction—there is room for improvement in delivering value for money, which remains an area of focus for many venues.
Opportunities for Craft Brewers: Craft brewers have several strategies at their disposal to capitalize on emerging trends:
Health-Conscious Innovations: Offering non-alcoholic and lower-ABV craft beers can cater to the growing health-conscious consumer base. Expanding these offerings can help breweries capture a larger share of this segment.
Focus on Premium Products: With consumers willing to pay more for quality, craft brewers should continue emphasizing premium, limited-edition brews. Special releases or seasonal beers can maintain customer interest and drive traffic.
Value-Driven Promotions: Craft breweries can attract more visitors by creating promotions during slower days, like Sundays or Wednesdays. These strategies can boost foot traffic without sacrificing the overall quality of the customer experience.
Insights from CGA’s On Premise Measurement Data
Beer Continues to Dominate: Beer remains the dominant category, accounting for 40.5% of all beverage alcohol sales in U.S. on-premise venues. However, shifting consumer preferences are emerging.
Growth of Ready-to-Drink (RTD) Beverages: Ready-to-drink beverages, particularly in high-energy venues like bars and nightclubs, are gaining traction. RTDs have increased their market share by 0.4 percentage points year-over-year, signaling an opportunity for craft brewers to explore innovative beer-based RTD offerings.
Boom in Non-Alcoholic Beer: Non-alcoholic beer saw a 33.7% growth year-over-year in on-premise sales, outpacing traditional beer growth. This surge in popularity—especially in styles like IPAs and stouts—presents an important opportunity for craft brewers to expand their non-alcoholic offerings.
Innovation in the Craft Beer Sector: Craft brewers are increasingly diversifying their offerings. Many are introducing family-friendly taprooms, adding cocktail menus, and enhancing customer experiences to broaden their appeal and attract a more diverse clientele.
Adapting to the Changing Market
As highlighted in the report, while beer remains dominant in the on-premise sector, the rising popularity of RTDs and non-alcoholic beers underscores a shift in consumer behavior. Craft brewers that prioritize innovation, expand their product ranges, and embrace trends like health-conscious choices and premium offerings will be well-positioned for continued success in the competitive market.
The key takeaway for craft brewers in 2025 is to continuously evolve with the market, enhancing not only their product offerings but also the overall consumer experience. By responding to shifting expectations and staying attuned to emerging trends, breweries can thrive in an increasingly dynamic and competitive landscape.
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