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Beer Is on Pace to Lose Its Leading Share of the U.S. Alcohol Market as Spirits Surge

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Beer is taking up less of the American booze market as beverage companies — even legacy beer-makers — flood the market with buzzy and innovative new drink categories, including ready-to-drink cocktails

The beer category, which includes hard seltzer, accounted for 42% of the U.S. beverage alcohol market in 2021, while spirits accounted for 41%, according to DISCUS. Wine accounted for 16%. At this trajectory, spirits are pegged to overtake beer in market share in the next few years, even though beer sales have grown.

The downward trend of beer market share has also been reflected on the online ordering and alcohol delivery platform Drizly. Over the past 12 months, beer has accounted for a 14% share, a two percentage point drop from the previous 12 months, according to Liz Paquette, head of consumer insights at Drizly. Spirits accounted for a 45% share, increasing by one percentage point.

Craft beer, said Watson, may be the industry's answer to consumers' increased willingness to spend more on variety, flavor and quality. Craft beer is typically made with higher quality ingredients, which provides consumers with a more flavorful and distinctive tasting beer than mass-produced options.

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