Beer continues to dominate the U.S. on-premise, but its share is slipping. New state-level data from CGA by NIQ shows where breweries and suppliers can grow distribution and win back drinkers.
Beer loses share to spirits and RTDs
According to CGA by NIQ’s On Premise Measurement (OPM) solution, beer accounted for 39.5% of all beverage alcohol sales by value in the 12 months to mid-June 2025. That marks a 0.3 percentage point drop year-over-year. Spirits gained 0.1 points and ready-to-drink (RTD) beverages jumped 0.4 points over the same period. Growth came largely from expanded distribution, underscoring the importance of placement and availability. From this website post:
Matthew Crompton, CGA by NIQ’s VP – North America, said: “Beer’s share of BevAl sales has come under pressure lately, and higher distribution provides one of the surest routes to offset RoS losses. But increasing brand presence is easier said than done, and sharply focused, hyper-local strategies are essential. By spotlighting states that are under-served in each category, our analysis is the ideal launchpad for growth in high-value, high-potential markets from coast to coast.”
Premium brands grow while craft shrinks
Within beer, imported and domestic super-premium brands are gaining ground. Imports added 1.3 share points while domestic super-premium gained 0.6 points. At the same time, craft lost 1.4 share points and domestic premium slipped 0.4 points. These shifts show consumers are spending more on premium experiences while many craft brands struggle with availability and visibility.
Where suppliers should target distribution
CGA by NIQ’s OPM data highlights the states with the biggest gaps between sales potential and current distribution.
- Craft beer: California leads the nation in total craft sales but only shows average distribution levels. Expanding placements here could unlock major upside.
- Domestic premium: Pennsylvania lags in distribution compared to its contribution to sales.
- Imports: New York and California top sales by value per outlet but remain under-distributed for imports.
- Domestic super-premium: Nevada and Arizona show distribution gaps despite consumer demand.
- Hard seltzer: Underperforming distribution in New York and Pennsylvania suggests untapped potential.
For breweries, this means localized, state-specific strategies are critical. Align distribution to where share and sales potential don’t yet match.
Hotel bars emerge as growth engines
CGA by NIQ’s 2025 Hotel Beverage Opportunity Study highlights hotel bars as one of the hottest growth channels. U.S. visitation to hotel bars rose 3 percentage points year-over-year and 5 points over two years. Hotel patrons spend about $100 more per month than the average on-premise drinker. Two-thirds are willing to pay more for premium beverages, making hotel bars prime ground for craft offerings. With hotel construction up 5.5% year-over-year in early 2025, this channel will only expand.
Brunch is booming for younger drinkers
CGA by NIQ also identifies brunch as a powerful new daypart. Thirty-nine percent of Gen Z (ages 21-24) now choose brunch as their top dining occasion. Nearly half of parents say the same. Consumers at brunch consider calories and ABV, making this an ideal fit for sessionable, fruit-forward, or non-alcoholic beers. For taprooms, brunch service represents a revenue extension opportunity.
Draft beer remains a craft stronghold
Despite category share loss, beer still leads the on-premise with 40.5% of all alcohol sales, according to CGA by NIQ. Draft beer makes up 52.3% of volume, surpassing packaged formats. Craft captures 47.2 cents of every draft dollar spent. This reinforces that fresh, well-served draft beer is still central to the consumer experience. Clean lines, consistent quality, and rotating offerings remain key to loyalty.
Takeaways for breweries
The data is clear: beer still rules the on-premise, but competition is fierce. CGA by NIQ’s research points to strategies breweries can adopt now.
- Target under-distributed states like California, Pennsylvania, New York, and Arizona.
- Enter high-value channels like hotel bars.
- Build brunch into taproom programming with sessionable styles.
- Protect draft as a core differentiator.
- Explore NA and RTD innovations to broaden appeal.
On-premise performance will remain critical for beer. The breweries that adapt quickly, go local, and invest in experience will be the ones that thrive.
