The buzz of craft beer seems finally to be fading. While on its surface the category may appear bubbly, over a decade of consistent double-digit growth has led to an oversaturated selection of brands on shelves. Today, expansion is slowing at a concerning rate; and while new breweries continue to appear, they’re mainly cropping up in concentrated markets, making it hard for all but a handful of brands to stand out and survive. Many industry experts speculate that the bubble will burst soon, if it hasn’t already. Others see this as an inevitable replay of when the “specialty beer” craze went flat in the late 1990s, causing so many craft brewers to close their doors.
But a new zeitgeist could be forming, with an opportunity to spark the imaginations and quench the curiosities of an entire generation. Wine is on the rise – particularly with younger consumers. In 2016, millennials overtook baby boomers in wine consumption (36% versus 34% nationwide). With 80 million strong, it is the largest generation in the U.S. and will have an estimated annual spending power of $1.4 trillion by 2020. These consumers are alpha influencers for their peers and other generations, ready to champion brands from early adoption to mass market – if they align with the brand’s values. Thirsting for brands that help them explore, feel understood and share, millennials contributed greatly to the magnitude of the most recent craft beer explosion.