CRAFT BEER - UPWARDLY MOBILE

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Consumer research from CGA reveals some interesting insights on who’s behind the rise and rise of craft beer.

IT’S CLEAR the craft beer category is going from strength to strength, but what sort of patrons are driving the momentum, and how can pubs capitalise on this?

Researcher CGA asked around 3,000 nationally representative Australian consumers about their beer habits in order to shed light on craft’s appeal.

CGA found that in Australia, craft beer drinkers are more likely to be younger and more affluent than non-craft beer drinkers. In good news for pubs, these young, affluent craft beer drinkers are also highly engaged with the On Premise. 70 per cent visit hospitality venues weekly, compared to 60 per cent of average beer drinkers – highlighting a lucrative consumer segment for operators to tap into.

Splashing out

According to CGA, pub patrons are prepared to spend more on craft beer when compared to domestic alternatives – at least 25 per cent more on average across all craft formats – draught, can or bottle.

Craft beer drinkers also typically spend more on eating and drinking out than the average beer drinker – $284 vs $220 per month, and they also have a household income that is 18 per cent higher. “The shift towards craft represents a significant opportunity, with craft beer drinkers spending more time and money in the On Premise,” CGA says.

Defining craft

So what else is common to craft beer drinkers? Not surprisingly, they are quite specific in their perceptions on what defines the category. 34 per cent say the category is defined by its unique flavour profile, 31 per cent point to the use of high-quality ingredients, and 22 per cent say craft beer must be owned by an independent company.

From a marketing perspective, highlighting the quality of the ingredients and the brand’s reputation is very important for craft.

CGA says these perceptions are worth considering when curating and positioning a craft beer range. “Craft beer drinkers tend to focus on quality and brand locality when it comes to factors influencing their purchase, and value unique flavours and high-quality ingredients when it comes to their choice of craft beer brands,” it found.

“From a marketing perspective, highlighting the quality of the ingredients and the brand’s reputation is very important for craft,” CGA says. “These aspects should be emphasised when it comes to positioning craft beer brands from a marketing perspective, to ensure trial and adoption.”

Shifting tastes

At a category level, typically craft beerconsumers prefer pale ales, with over athird choosing it when out as opposed tolager (30%) and IPAs (19%). Growing inpopularity, however, are more sophisticatedcraft serves such as fruit beer, craft stoutand craft brown ale which are all beingconsumed more frequently compared to ayear ago.

When selecting craft beer in the OnPremise, patrons are more willing to explorethe category, according to CGA, and arealso over-indexing for ‘new and interestingbrands’ and ‘bar staff recommendations’when compared to average beer drinkers.

Craft keeps growing

Overlap between beer type drinkers is relatively low, with over two thirds of all beer drinkers in the Australian On Premise tending to stick to one sub-category – domestic (38%), craft (21%) or imported (10%), according to CGA’s research.

Craft beer, nevertheless, is making inroads, recording a gradual rise in the Australian On Premise, with 26 per cent of beer drinkers stating they are drinking it more frequently year-on-year – the only beer category where more drinkers are increasing consumption frequency than decreasing.

Within Australia, consumers say they value local produce, and beer drinkers are no exception – they even over-index when it comes to this factor compared to the average Australian consumer. 40 per cent of beer drinkers agree that it is more important that their drink is Australian-made compared to pre-Covid, versus 34 per cent of Australian consumers overall, according to CGA.

“With 26 per cent of beer consumers in Australia opting for Craft Beer more frequently yearon-year in the On Premise, there is definite room for growth within the category,” says Graeme Loudon. CGA’s managing director, EMEA & APAC.

“For brands who can demonstrate their craft beer credentials, emphasising high quality ingredients and unique flavour profiles, there’s an opportunity to tap into a growing consumer base who are looking to trial new offerings and are willing to spend more.”