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If you brew it, who will come? Market segments in the U.S. beer market

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  • Trey Malone
  • Jayson L. Lusk

Abstract

This article uses data collected from a large number of representative United States beer drinkers to identify potential market segments through consumers' taste perceptions of various beer brands. We use several well†established marketing research methods to show that distinctive segments of the beer market underlie aggregate demand for craft beer. Using exploratory factor analysis, we find that consumers tend to group beers by two underlying factors of taste. We then use cluster analysis to provide a description of how market segments are influenced by brand familiarity. Overall, this article highlights consumer heterogeneity in the modern U.S. beer market and provides an example of how one might use primary data to analyze segmentation in a growing but highly competitive market. [EconLit citations: : C83, M3, Q1]

Suggested Citation

  • Trey Malone & Jayson L. Lusk, 2018. "If you brew it, who will come? Market segments in the U.S. beer market," Agribusiness, John Wiley & Sons, Ltd., vol. 34(2), pages 204-221, March.
    • Handle: RePEc:wly:agribz:v:34:y:2018:i:2:p:204-221
    DOI: 10.1002/agr.21511
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    4. Trey Malone & Jayson L. Lusk, 2016. "Brewing up entrepreneurship: government intervention in beer," Journal of Entrepreneurship and Public Policy, Emerald Group Publishing Limited, vol. 5(3), pages 325-342, November.
    5. Trey Malone & Dustin Chambers, 2017. "Quantifying Federal Regulatory Burdens in the Beer Value Chain," Agribusiness, John Wiley & Sons, Ltd., vol. 33(3), pages 466-471, June.
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    8. Jayson L. Lusk, 2017. "Consumer Research with Big Data: Applications from the Food Demand Survey (FooDS)," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 99(2), pages 303-320.
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    Cited by:

    1. Aaron J. Staples & Carson J. Reeling & Nicole J. Olynk Widmar & Jayson L. Lusk, 2020. "Consumer willingness to pay for sustainability attributes in beer: A choice experiment using eco‐labels," Agribusiness, John Wiley & Sons, Ltd., vol. 36(4), pages 591-612, October.
    2. Damien Rousselière & Thomas Coisnon & Anne Musson & Samira Rousselière, 2023. "Following Pauline advice? A short note on moderate alcohol consumption and subjective well‐being in Europe," Agribusiness, John Wiley & Sons, Ltd., vol. 39(4), pages 1333-1351, October.
    3. Timothy J. Richards & Bradley J. Rickard, 2021. "Dynamic model of beer pricing and buyouts," Agribusiness, John Wiley & Sons, Ltd., vol. 37(4), pages 685-712, October.
    4. Popp, Michael & Mahamba, Grace & Thompson, Jada & Malone, Trey & Popp, Jennie, 2023. "Marketing Strategy Selection for Small-Scale Fruit and Vegetable Growers: Lessons from the Mid-Southern United States," Journal of Food Distribution Research, Food Distribution Research Society, vol. 54(3), November.
    5. Aaron J. Staples & Trey Malone & J. Robert Sirrine, 2021. "Hopping on the localness craze: What brewers want from state‐grown hops," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 42(2), pages 463-473, March.
    6. Radovan Savov & Xénia Szarková, 2022. "Craft beer revolution: formation of a new segment in Slovakia," Equilibrium. Quarterly Journal of Economics and Economic Policy, Institute of Economic Research, vol. 17(1), pages 225-246, March.

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