Is beer getting more expensive? Prices up more than groceries and people are buying fewer brews. (2024)

Mike Snider|USA TODAY

Inflation may finally be hitting a staple long been consideredrecession-proof: beer.

During the last 13weeks of 2022, beer prices at retail (not including bars and restaurants) rose a "much higher than normal" average of 7%,according to Bump Williams Consultingof Shelton, Connecticut, which services the alcoholic beverageindustry, and uses Nielsen data. Some beers including those such as Bud Light, Miller Lite, Yuengling Lager and Coors Light saw prices rise even higher – by 10%– the data suggests.

During that time period, there was alsoa decline in volume of beer sold. Domestic super-premium beers such as Michelob Ultra saw sales rise 0.8% throughout the year, but fell off 2.3% in the four weeks leading up to Christmas, according to Bump Williams Consulting. Similarly, sales of imported beers such as Corona and Heineken rose 4.2% in 2022, but dipped 0.5% in December.

That suggests beer shoppers may have opted to buy less beer – a six-pack or 12-pack instead of something larger– or maybe bought a cheaper brand.

For instance, lower-priced "below premium" beers such as Budweiser and Miller High, malt liquor and single-serve beers(16-ounce, 19.2-ounce and other tallboys) saw gains in December, said Dave Williams, vice president of analytics and insight for Bump Williams Consulting.

CES 2023 — the future of vehicles: Cars that can fly and change colors

Federal Trade Commission: Agency files suits to stop companies from making workers sign noncompete restrictions

"Sooner or later everyone hits a breaking point when it comes to their price sensitivity and are going to alter" their behavior by spending less or shopping less often, he told USA TODAY.

Beer prices on the rise

Inflation has afflicted beer makers with the increased cost of ingredients and shipping, just as consumers have been hit with higher gas and grocery prices.

So, beer producers have raised prices.The price of beer purchased to drink at home had risen about 7.7% as of November 2022, compared to November2021, according to the Labor Department’s consumer price index. That's higher than whiskey (1.7%), wine (3%), and other spirits (1.7%).

But during the month of November 2022 alone, beer prices rose 1.3%, higher than the price of overall groceries (0.5%). Egg prices – up 2.3% – still outpaced beer, however.

While overall inflation appeared to be coming down as the year ended, it was "less so in beer," notedBart Watson, chief economist for the Brewers Association, in a tweet.

Also rising: the price of beer away from home, up 6.6% for the year and 0.1% for the month of November, according to the index.

Constellation Brands, which makes Corona andModelo beers and other alcoholic beverages, said it plans to temper its increased prices after hikes in October slowed sales, The Wall Street Journal reported Friday.“The consumer is overly sensitive to pricing actions,” it quoted Constellation CEO Bill Newlands saying. “We need to be careful in balancing our growth profile and our pricing profile.”

'We value the power of family': Iconic chef José Andrés, daughters explore Spain in new show

Lawsuits over sweets: Dark chocolate from Trader Joe's, Hershey has 'unsafe levels' of lead and cadmium

As prices rise, Americans buy less beer

For now, higher prices are making up for consumers buying slightly less beer. Sales are up about 2%, in dollar value, over the last year, Williams said.

"Dollars are up, that’s good," he told USA TODAY. "But how long can that maintain if volume continues to slip and slide."

The beginning of the year is typically a "soft season" for beer sales, Williams said. "2023 will be interesting to monitor as this phenomenon continues to play out."

"I am not suggesting that people will stop consuming beverage alcohol entirely, but there are certainly different decisions being considered today than there may have been at this point last year or (in) the years prior."

What's everyone talking about?: Sign up for our trending newsletter to get the latest news of the day

Follow Mike Snider on Twitter:@mikesnider.

Is beer getting more expensive? Prices up more than groceries and people are buying fewer brews. (2024)

FAQs

Is beer getting more expensive? Prices up more than groceries and people are buying fewer brews.? ›

As prices rise, Americans buy less beer

Is beer getting more expensive? ›

The price of a six-pack went up about a buck every decade in actual pricing. What was the price of beer in 1994? The nominal price was a fixed and real $3.65. But if you look backwards from 2019, it was $6.32; from 2024 it was $7.65.

Why is alcohol getting more expensive? ›

New California laws now in effect

1, alcohol is going to cost you a little more in California. That's because California has expanded its Beverage Container Recycling Program to include glass wine and liquor bottles, large plastic juice bottles, and even boxed wine containers and alcoholic beverage pouches.

Why is beer declining? ›

Ever since Covid and its aftermath struck the beer industry, sales figures have been wonky. That disruption had a profound effect on our lives, and trying to sort out how it affected beer sales hasn't been straightforward. Issues like broken supply chains, tariffs, and inflation have confounded matters.

What is the biggest problem for beer industry? ›

The beer industry is experiencing a scarcity of hops due to adverse weather, brush fires, and other environmental events. With rising temperature reducing soil moisture and droughts exacerbating water shortages, climate change poses a real threat to the availability of raw materials of the beer supply chain.

How much was a case of beer in 1970? ›

Here's what a six-pack of beer cost the year you were born
YearAvg. 6-pack price:Inflation adjusted:
1969$1.92$10.18
1970$1.98$10.03
1971$2.05$9.98
1972$2.07$9.74
57 more rows
Nov 20, 2018

Why are drinks getting so expensive? ›

As inflation began to take off in 2021 and 2022, that impacted beverage makers like Coca-Cola and Pepsi, which pointed to higher costs coming from a variety of angles, including aluminum cans, packaging, labor, and general supply chain woes.

Which state has the lowest alcohol prices? ›

States like Goa and Himachal Pradesh are known for relatively lower alcohol prices in India.

Why is alcohol becoming less popular? ›

Growing public concern about the health risks of drinking, particularly among young adults, could be behind these shifts. Gallup's latest update on Americans' drinking habits, from a July 3-27 poll, found a marked increase from earlier readings in Americans' belief that even moderate drinking is bad for one's health.

Why do rich people drink more alcohol? ›

Heavy drinking is a way to escape from the stress and lack of control they experience in their lives, feelings that are less intense for affluent people who enjoy higher social status, better social support, and more economic freedom.

Is beer drinking on the decline? ›

It would appear that annual beer consumption in America has reached it's lowest point since the 90's. According to data from Beer Marketers' Insights, beer shipments in 2023 are expected to be under 200 million barrels.

What is the best selling beer in the US? ›

Bottles of Modelo Especial beer are displayed for sale in a grocery store on June 14, in Los Angeles. Modelo Especial is now officially America's best-selling beer, dethroning Bud Light from the top spot it has largely held for the past two decades.

Why are breweries failing? ›

Every brewery is unique, but there are several common potential problems to consider: borrowing too much money or overextending investor equity, brewery expansion too , beer quality issues, poor management.

Who is the biggest consumers of beer? ›

The Countries That Drink the Most Beer
RankingCountry
1China
2United States of America
3Brazil
4Mexico
21 more rows
Mar 29, 2024

What demographic drinks the most beer? ›

Men drink twice as much beer as women, according to the poll, averaging 22.8 servings a month, while female beer drinkers averaged 11.3 servings in the same period. Those drinking the most were between the ages of 21 and 24 (averaging 23.3 servings per month), while seniors drank 12.5 servings, the lowest by age group.

What is the problem with beer? ›

Drinking higher amounts of alcoholic beer can cause, blackouts, drowsiness, low blood sugar, vomiting, and other serious problems. Drinking large amounts of alcoholic beer long-term can cause many serious health problems including dependence, liver problems, and certain types of cancer.

Why are bottles of beer more expensive? ›

Speaking of beer prices, bottled and draft beer are priced differently and it's not because of the fancy cans and bottles they come in. It's because they have different pour costs, which we noted in a previous post, is the ratio between the costs of products purchased and the revenue from products sold.

Why are beers at bars so expensive? ›

Primarily, because people are willing to pay the costs -- it's largely a matter of supply and demand. Secondarily, because people aren't just buying the drinks, they're buying the experience and the entire atmosphere -- this is why the more "fancy" the place, the higher the cost (and margin) on the alcohol.

How much was a beer in 2000? ›

The Price Of A Beer: 1952-2016
YearPrice of BeerAdjusted for Inflation
1997$2.68$4.04
1998$2.73$4.08
1999$2.80$4.07
2000$2.88$4.09
61 more rows
Mar 9, 2017

Is beer really cheaper than gas? ›

If you have a draft system and you're buying ½ kegs of the good stuff, gas will likely always be way cheaper than your beer. Guess that's the price you pay for being a snob. Bottled and canned beers are not likely to ever be cheaper than buying gas.

Top Articles
Latest Posts
Article information

Author: Dr. Pierre Goyette

Last Updated:

Views: 5941

Rating: 5 / 5 (70 voted)

Reviews: 85% of readers found this page helpful

Author information

Name: Dr. Pierre Goyette

Birthday: 1998-01-29

Address: Apt. 611 3357 Yong Plain, West Audra, IL 70053

Phone: +5819954278378

Job: Construction Director

Hobby: Embroidery, Creative writing, Shopping, Driving, Stand-up comedy, Coffee roasting, Scrapbooking

Introduction: My name is Dr. Pierre Goyette, I am a enchanting, powerful, jolly, rich, graceful, colorful, zany person who loves writing and wants to share my knowledge and understanding with you.