Tapping into the Booming US Food Delivery Market – A Golden Opportunity for Beer Brewers}

Tapping into the Booming US Food Delivery Market – A Golden Opportunity for Beer Brewers

In the vast expanse of the American beer market, a compelling trend is emerging for FSA providers, in the form of Dry January. This abstinence-centric month has traditionally posed challenges for beer sales, but this year unveils a silver lining. Dashmote's extensive dataset provides invaluable insights into the rise of FSAs in the United States, painting a picture of shifting consumer preferences and expanding opportunities.

Every year during Dry January, beer brands face a unique challenge, but a promising opportunity. In this exploration of the US beer market, we uncover a silver lining amidst the rise of Dry January, connecting the rise of non-alcoholic beer with the dynamic growth of US food delivery. Dashmote's robust dataset guides us through the changing tides of consumer preference, presenting beer brands with a compelling narrative and strategies for success.

Dry January's Impact on Beer Consumption

The phrase "Dry January" may send shivers down the spines of beer marketers, but this year brings a glimmer of hope. According to Statista [1], the volume share of low-alcohol and non-alcoholic beer in the US next year will be about 3.2% compared to 13% in Spain, the top consuming country. Jonnie Cahill, chief marketing officer at Heineken USA, said “That tells you there's an opportunity there, because if you take a long-term view, which we've done with his innovation, which is we're in it for five, 10, 20, 50, 100 years, it's gonna get there”. By utilizing Dashmote’s intuitive app and accessing data insights, alcohol-free beer brands will be able to breach the non-alcoholic beverage market. 

The Rise of Low- and No-Alcohol Beer During Dry January

The Morning Consult study, commissioned by the Beer Institute, reveals a fascinating trend among Dry January participants. In the US, about 65 percent of people between the ages of 21 and 54 said they were “somewhat to very likely” to observe Dry January. Over half of Americans opting for a dry month are turning to low- and no-alcohol beer to help them achieve their goals. Brian Crawford, the president and CEO of the Beer Institute, notes that "as many Americans increase their focus on moderate consumption, a growing majority of them are using low- and no-alcohol beer to help them hit their goals. [2] 

US Food Delivery Platforms Paving the Way for Alcohol-Free Brand Success

In the dynamic realm of US food delivery, the growth rates from Q3 to Q4 of 2023 present a captivating narrative for major platforms. We leveraged Dashmote’s data to check the number of DSFs present on each platform and compare them with growth rates quarter-over-quarter.

- Doordash Dominance: Doordash, a standout performer, exhibits impressive growth rates throughout 2023. In the first quarter, the FSA’s market share in the US were quite similar, standing at 400k to 460k DSFs each.  The platform witnessed a substantial 9% increase from Q3 to Q4, capping off the year with an outstanding 26% surge.

- GrubHub's Resilience: Despite facing challenges earlier in the year, GrubHub demonstrates resilience in the latter part of 2023. The platform shows a commendable 2.7% growth from Q3 to Q4, showcasing its ability to adapt and maintain a steady market presence. This positive trajectory positions GrubHub as a reliable player in the evolving food delivery landscape.

- UberEats' Strategic Growth: UberEats strategically maneuvers the market dynamics, achieving a 2.8% growth from Q3 to Q4. This signifies the platform's responsiveness to evolving consumer demands and its consistent efforts to enhance its digital storefronts. UberEats concludes the year on a positive note, contributing to the overall growth in the US food delivery universe.

- Total FSA Universe Soars: Overall, between Q3 and Q4, there was a noticeable increase compared to the previous quarters for FSA (food service aggregators). Dashmote’s data unveils an impressive 10.3% growth in Q4. 

Market Penetration Opportunity for Alcohol-Free Brands 

The US food delivery expansion not only signifies the industry's adaptability but also presents a substantial opportunity for alcohol-free beer brands to establish a more robust presence in the market. As American consumers increasingly embrace low- and no-alcohol beer options, the US beer industry strategically positions itself to meet this growing demand. Dashmote's dataset serves as a reinforcing compass, illustrating the industry's commitment to accommodating changing consumer preferences and embracing sobriety, all while upholding the craft and quality that defines its character.

Conclusion: Riding the Wave of Non-Alcoholic Beer's Momentum

The data-driven insights unveil a promising landscape for non-alcoholic beer within the food delivery sector. Despite historical challenges during Dry January, expanding digital storefronts and overall growth in the food delivery universe highlight a positive trajectory for alcohol-free options. Breweries across the US, investing in non-alcoholic technology and processes, provide consumers with diverse choices. Dashmote's data navigates brewers through the tides of change, as the appeal of non-alcoholic beers becomes a prevailing force in the ever-evolving American beer market. 

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If you find this article valuable, you may also be interested to check out more of our blog articles on franchises, such as Heineken’s Journey in Southeast Asia and Canned Beverages Landscape of 2023

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