We all know that beer is one of the most profitable segments of any restaurant or bar operation. When done right, beer can lead to profit margins that far exceed food sales, and those facts will likely always be the case.
What does the beer industry look like now, though, and how is it expected to grow in 2024? Before we look into the future of the beer industry, let's start by reflecting on how sales were received over the previous few years.
According to the Brewers Association, a leading expert in industry statistics whose most recent report details data from 2022, overall U.S. beer volume sales declined by 3%, while craft brewer volume sales remained steady, maintaining a 13.2 percent share of the U.S. beer market by volume. Retail dollar sales for craft beer increased by 5 percent to $28.4 billion, making up 24.6 percent of the expanded $115 billion U.S. beer market. What is this attributed to? Price increases and a shift in beer volume back to bars and restaurants from packaged sales. Meaning that beer is still profitable, even if overall sales are slightly down.
Beer Industry Outlook for 2024
With the beer industry constantly evolving, what can we expect in 2024? From craft breweries adapting to overcome stagnant growth to the rise of niche beverages like ginger beer, this year promises exciting changes.
As craft breweries strive to combat some of the lack of growth mentioned above, we can expect new flavors, out-of-the-box marketing strategies, and even collaborations with other local businesses (and brewers) to expand consumer reach. Here are some benefits to consider when analyzing the beer industry in 2024:
High-Profit Margins: Beer remains a profitable choice for businesses, boasting higher profit margins compared to other beverages. In restaurants, it can serve to enhance the bottom line when compared to margins typically garnered by the food side of the business.
Customer Appeal and Retention: A diverse and curated beer selection appeals to a broad range of customers, including beer enthusiasts. This not only boosts customer satisfaction but also promotes repeat business, solidifying the beer segment's profitability.
Complementary Sales: The connection between beer and food is undeniable. Offering beer in your establishment can lead to increased food sales, and themed beer dinner nights can draw larger crowds, enhancing overall profitability.
Keg Storage Tips to Increase Profitability in 2024
In order to increase and ensure profitability in your draft beer program, the team at Cooler Concepts suggests some basic keg storage tips that will help generate success.
First, make sure you're using durable shelving. Ultimately, having the proper shelving will contribute to the overall ROI of an operation both in the long term and the short term. In the immediate future, keg racks can facilitate enhanced organization that will lead to labor efficiency, enhanced safety, and less waste.
In the long term, the right shelving system can help to future-proof your beer cooler by creating a flexible storage space that adapts to consumer demand. In addition, shelving, like the keg racks made by Cooler Concepts, will have an extended shelf life. In fact, in our 30 years of existence, we haven't had a single warranty claim. With other manufacturers, an operation might need to replace shelving every few years, resulting in increased costs and the possible loss of inventory or sales.
Find out how customized shelving solutions from Cooler Concepts can help your foodservice or beverage business in 2024:
