Michelob Ultra Surpasses Modelo as Top US Beer
Michelob Ultra has become the best-selling beer in the US retail market, overtaking Modelo Especial in volume sales for the year ending September 14, 2025 (MyJoyOnline, 2025). This milestone follows a turbulent period for Anheuser-Busch, particularly with its Bud Light brand, which lost its leading position after a consumer boycott linked to controversial advertising decisions. The launch of Michelob Ultra Zero, a non-alcoholic variant, along with increased marketing efforts including sponsorship at global sporting events, has propelled the brand’s resurgence despite the overall stagnation in the US beer industry (MyJoyOnline, 2025).
Broader US Beer Market Trends and Consumer Shifts
The US beer sector continues to face headwinds from changing drinking habits, with a long-term decline in per capita beer consumption over recent decades (MyJoyOnline, 2025). Concurrently, on-premise consumption remains robust, with over 75% of consumers dining out and half visiting bars for drinks, according to CGA’s On Premise Impact Report for early 2025 (CraftBrewingBusiness, 2025). The report highlights that health-conscious consumers increasingly prioritize lower-alcohol or non-alcoholic beverages, presenting craft brewers with opportunities to innovate and capture niche markets.
The ongoing trend of premiumization also persists, with about 20% of customers opting for higher-quality food and drinks during outings. However, value remains a critical consideration for about half of on-premise consumers, indicating the need for breweries to balance quality with affordability (CraftBrewingBusiness, 2025). Additionally, pairing beer with complementary food items emerges as a strategic avenue for consumer engagement.
Global Craft Beer Market Expansion
Globally, particularly in Europe, the craft beer market is set for significant growth, projected to reach $329.7 billion by 2033 with a compound annual growth rate (CAGR) of 8.74% from 2025 onward (IMARC Group, 2025). This surge is driven by consumer demand for unique flavors, locally brewed and artisanal beers, and beer tourism. Europe’s dominance, holding 38.1% of the market share, underlines strong regional traditions and expanding microbrewing culture (IMARC Group, 2025).
Industry Challenges and Strategic Directions
The Worldwide Brewing Alliance (WBA), representing 70% of global beer production, points to multiple pressures on beer sales including economic factors like the rising cost of living, increased input costs (energy, barley, packaging), and complex regulatory environments (TheDrinksBusiness, 2025). Despite these headwinds, premium beer segments are outperforming spirits and wine in several markets such as Brazil, France, and Spain, partly fueled by the preferences of younger demographics like Gen Z (TheDrinksBusiness, 2025).
WBA emphasizes the importance of collective industry engagement with policymakers to ensure proportionate regulation and tax sustainability that fosters sector growth rather than hindering it (TheDrinksBusiness, 2025). Craft brewers and larger producers alike are advised to leverage market nuances and demographic shifts to navigate the evolving beer landscape effectively.
