Consumers confused about 'craft' beer

New flavour innovations and product offerings are confusing and overwhelming beer consumers. With bigger beer brands acquiring craft and independent breweries, the definition of ‘craft’ beer is becoming blurred.

Consumers associate the craft movement with specific factors, including authentic, local and independent. A survey by GlobalData revealed that 38% of consumers associated ‘authenticity’ with craft, as well as 36% ‘locally made’ and 30% ‘made by small independent producer’.

Increasing product launches and unusual flavour offerings mean consumers are overloaded with choice, and the craft concept has been devalued, making it harder for manufacturers to market their products.

Buzzwords such as ‘craft’ and ‘artisanal production’ now have negative connotations for global consumers, as over 40% believe they are merely an excuse for manufacturers to increase the price. Around 50% of consumers in Australia, the US and the UK share this sentiment.

Instead, manufacturers must add value to their products in other ways if they are to gain attention from consumers. GlobalData’s report ‘Snapshot of Beer and Cider Innovation Trends’ suggests this can be achieved through “in-speriences” (on-trade experiences at home), which could see an increase in DIY beer and cider gadgets that can produce beverages at home.

However, consumers want these new experiences without any added effort. Investing in new technology that can make the consumer’s life easier or understanding their wants and needs will allow manufacturers to stand out from competitors in the saturated market.

FMCG brands can also capitalise on consumer demand for products that are locally produced and have local ingredients. The ‘TrendSights Analysis: Localism’ report suggested this is because they consider these products to be better quality, healthier, more sustainable, more trustworthy and more authentic than non-local alternatives.

Consumer distrust is growing throughout the food and beverage industry, and this is only fuelled by the overuse of untrue claims or misleading labelling. The localism trend sees consumers supporting their local community and opting for products they trust.

While 70% of global consumers choose locally produced products because they assume they are ‘fresher’, 42% merely favour smaller and locally produced brands over bigger, mass market brands. According to this report, localism is particularly prominent in Japan and Australia.

Beer manufacturers that challenge the norm and address consumer desires will gain the most.

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