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Craft Beer Positioned to Thrive as U.S. On-Premise Market Grows in 2025, CGA by NIQ Report Finds

by Kaia

The U.S. on-premise beverage alcohol sector is experiencing renewed growth and evolution in 2025, according to the latest US On Premise: BevAl State of the Nation report released by CGA by NIQ. With a 1.9% year-over-year increase in the number of bars, restaurants, and nightclubs, the findings highlight a promising landscape for local and regional craft breweries aiming to expand their presence in a competitive market.

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The report emphasizes that the on-premise channel remains a crucial component of the American social fabric and an essential touchpoint for beverage alcohol strategy. “The On Premise has a very special place in American life, and it should be at the core of every beverage alcohol strategy,” said Matthew Crompton, Vice President, On Premise – Americas at CGA by NIQ. He noted the importance of navigating a fragmented, fast-changing market with a comprehensive understanding of consumer behavior. Crompton added that CGA’s tools offer the insights needed to drive sales, secure product placements, and grow market share.

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Consumer Behavior Signals Strength Despite Economic Pressures

Despite ongoing economic uncertainty and rising prices, consumer engagement in the on-premise channel remains robust. The report reveals that 77% of Americans dined out in the past month, while 50% went out specifically for drinks. Notably, 28% of respondents indicated plans to go out more in the coming month, signaling positive momentum for hospitality venues.

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Inflation has pushed on-premise beverage prices up by 2.1% year-over-year, and more than half of surveyed consumers reported being financially worse off compared to four years ago. Nevertheless, quality remains a strong selling point: 46% of consumers said they are willing to spend more for a better drink, particularly when backed by a compelling story or recommendation. This trend offers craft brewers an opportunity to position their offerings as premium, experience-driven choices worth the investment.

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Promotions and Staff Influence Remain Key Drivers

Value continues to be a priority for on-premise patrons. Approximately 45% of consumers expressed a desire for more promotions and specials in bars and restaurants. However, value does not necessarily equate to discounts. The report underscores the role of service quality and staff engagement in enhancing perceived value. Craft brewers are encouraged to invest in staff education, as nearly one-third (29%) of consumers said bartender recommendations influence their beverage selections.

Craft Beer Dominates in Chains, Especially in the West

The report also highlights the sustained strength of craft beer within U.S. chain establishments, where it accounts for 33% of the beer category share — with even higher figures reported in Pacific Coast states. Draft beer continues to outperform packaged formats, now comprising 69% of chain beer sales. This trend presents a strategic opportunity for breweries with robust draft programs.

While ready-to-drink (RTD) beverages currently make up just 1% of total beverage alcohol sales in chains, their 51% year-over-year growth suggests rising consumer interest. Craft producers exploring canned cocktails or flavored malt beverages may find particular opportunity in markets such as Ohio, Florida, and California.

Data-Driven Strategy Critical for 2025 Success

The BevAl State of the Nation report provides a comprehensive look at the on-premise landscape, covering not only beer but also wine, spirits, and RTDs, alongside consumer demographics and spending behavior. For craft breweries aiming to succeed in 2025, data-driven insights will be vital to shaping effective sales strategies and seizing emerging opportunities.

To access the full report and explore detailed analytics across categories, stakeholders can download the complete findings from CGA by NIQ.

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