Datamonitor says women in U.S. are drinking more beer

Modern Brewery Age, May 16, 2005

Datamonitor, the London-based beverage analysis firm, reports that low carb and light beers are driving greater beer consumption by females in the U.S.

According to a new report issued by Datamonitor, female beer consumption accounts for about 30% of overall U.S. beer volume.

Datamonitor says 'healthy' beer options are contributing to higher beer consumption by women. "The low-carb trend has benefited players in the beer industry providing them with a golden opportunity. The new product lines have achieved a large volume of sales globally but growth in the US in particular has been extraordinary. With more than 50% of the US population reporting a conscious effort to limit their carbohydrate intake in 2003, these alternatives are proving a perfect compliment to the rising popularity of all things low-carb," says Nicci Pugh, consumer analyst at Datamonitor.

However, Datamonitor warns that brewers "cannot be complacent...as numerous new products strive to secure market share and the female dollar."

The company noted that "the US beer market in its entirety has suffered in the face of a growing preference for wine, driven by more attractive pricing and the success of wine manufacturers in targeting young adults. Spirits are another sector to have gained share at the expense of beer."

However, Datamonitor asserts that a recovery is underway. "Valued at $73.1 billion in 2003, the US beer market grew by only 0.1% year on year. However, in 2004, value increased by 0.8%, reaching $73.8 million ... Datamonitor expects this recovery to continue."

Datamonitor values the U.S. beer, cider and flavored malt beverage market at about $78 billion.

"The shift in an increasing number of women drinking beer is not solely representative of consumer tastes but also of a change in lifestyles, with the number of affluent single women increasing," comments Nicci Pugh.

The Datamonitor analysts say flavored beers will help revive the overall beer market in the US. "The popularity of low-carb and lite beers amongst women has also encouraged manufacturers to produce a range of flavored beers, providing yet another growth opportunity in the US beer industry and the chance to impact on the female-centric cooler market," the report says, pointing to products like Anheuser's B-to-the-E.

Datamonitor says these flavored beers "are well poised to take advantage of the rapidly declining popularity of Flavored Alcoholic Beverages (FABs)."

However Datamonitor warns that the entrance onto the market of low-carb cocktails could provide heavy competition.

"Product such as Baja Bob's Sugar Free and Low Carb Mixes, and similar alcoholic drinks alternatives may inhibit growth in the overall beer market," the report notes, "as new product innovations aim to tickle female taste buds in a bid to secure a share of the female dollar."

In conclusion, Nicci Pugh says, "The US beer market has overcome challenges but manufacturers cannot rest on their laurels. Failure to respond to an ever-changing consumer could potentially translate to a loss in market share."

See www.datamonitor.com for details.