Beer Wholesaling

Summary

Revenue growth for the Beer Wholesaling industry has been hindered by shifting alcohol consumption trends among consumers, particularly millennials.

Americans have been consuming less beer and opting for alternative alcoholic beverages.

However, the industry has continued to benefit from laws that prevent the vertical integration of breweries and retailers.

After the Prohibition era, nearly every state enacted a three-tier distribution system, requiring three distinct levels within the alcoholic beverage supply chain, including producer, distributor and retailer.

As a result, beer wholesalers have a protected role, purchasing beer from producers before storing and transporting it to downstream retailers.

Research estimates that industry revenue has grown at an annualized rate of 2.3% to $82.9 billion over the five years to 2021.

Since 2020, the COVID-19 (coronavirus) pandemic has resulted in rising demand for industry operators, with revenue projected to rise 1.0% in 2021 alone.

Additional Information about Beer Wholesaling

Performance

The Beer Wholesaling industry comprises operators that purchase, store, sell and distribute beer and other fermented malt beverages made by the Breweries industry to consumer-facing outlets, such as retail businesses and on-premise food service establishments.

This industry does not include businesses engaged in the merchant wholesale distribution of distilled spirits and wine.

Despite having to contend with a long-term decline in the volume of beer consumed, the industry has performed moderately well over most of the five years to 2021 due to increased consumer spending, the sustained popularity of craft beer and a steady decline in the excise tax on beer.

Research estimates that industry revenue has increased an annualized 2.3% to $82.9 billion over the five years to 2021, including an increase of 1.0% in 2021 alone due to the COVID-19 (coronavirus) pandemic.

Outlook

Revenue for the Beer Wholesaling industry is expected to continue to grow over the five years to 2026.

Major brewers are expected to settle into new, streamlined product distribution agreements that will likely supply a greater variety of brands to wider markets.

Beer wholesalers, nevertheless, will likely continue to encounter growing competition, particularly from industries that specialize in wine and other alcoholic beverages geared toward health-conscious consumers.

As the economy recovers and on-site establishments that serve alcohol reopen, consumers are expected to drive growth in demand from this downstream segment, benefiting the industry.

With per capita disposable income expected to rise an annualized 2.1% over the five years to 2026, aided by unprecedented federal government support and a recovering economy, research forecasts revenue to increase.

Revenue will likely grow at an annualized rate of 2.1% to $91.8 billion over the five years to 2026.

Consolidation among the industry’s largest distributors is also projected to continue, as operators vie for economies of scale and new geographic markets.

Industry

This industry comprises operators that primarily purchase, store, sell and distribute beer and other fermented malt beverages made by the Breweries industry.

This industry does not include operators that distribute distilled spirits and wine.