Michelob ULTRA Becomes America’s Leading Beer Brand
Anheuser-Busch’s Michelob ULTRA has claimed the top spot in US retail beer sales, overtaking Constellation Brands’ Modelo Especial, a brand that had led since dethroning Bud Light two years ago (The Drinks Business, 2025). Michelob ULTRA’s rise follows over two decades of sustained investment focused on sports sponsorships and active lifestyle marketing, helping it resonate with consumers seeking healthier and more active choices (The Drinks Business, 2025).
Market Dynamics and Consumer Preferences Shift
Michelob ULTRA’s success marks a notable shift in US beer preferences. The brand achieved a 15% growth since 2020 and gained over 2% market share in five years, supported by innovative launches such as Michelob ULTRA Zero, a leading non-alcoholic beer in the US market within nine months of release (The Drinks Business, 2025). This growth contrasts with recent challenges faced by Constellation Brands, whose shares dropped nearly 40% this year amid weakening beer sales and increasing competition from AB InBev brands (The Drinks Business, 2025).
Craft Beer Market Growth and Trends
Parallel to the dominance shifts among industrial beer brands, the craft beer market continues experiencing robust growth. It is projected to grow at an 8.74% compound annual growth rate through 2033, reaching USD 329.7 billion globally (IMARC Group, 2025). In the United States alone, the craft segment accounts for 86.85% of North America’s market share. Consumer demand for artisanal, locally brewed beers with distinctive flavors remains strong, fueled by preferences for sustainable packaging and innovative production techniques (IMARC Group, 2025).
Despite a 4.1% decline in off-premise craft beer sales volume in 2025 mirroring the overall category decline, smaller breweries, especially those producing less than 1,000 barrels annually, show resilience with half reporting growth, supported by hyperlocal business models such as taprooms and brewpubs that appeal to evolving consumption patterns (Craft Brewing Business, 2025).
New Beverage Categories and Regional Insights
Emerging trends include the rise of cannabis-infused beverages, seen as a growing ‘fifth category’ within the drink market. Though still nascent, this segment is gaining traction among consumers who seek alternatives perceived as healthier and less hangover-inducing compared to alcohol (Hop Culture, 2025). Meanwhile, Europe remains a significant craft beer market leader, accounting for approximately 38.1% of the global share, driven by its rich brewing heritage and tourism (IMARC Group, 2025).
Industry Challenges Amid Cybersecurity Threats
Amid these market evolutions, traditional beer giants face operational risks, as illustrated by Japan’s Asahi Group, which remains unable to fully resume production after a recent cyberattack, highlighting vulnerabilities in production continuity within the beer industry (The Manila Times, 2025).
These developments underscore the complex and dynamic nature of the global beer landscape, marked by shifting brand leadership, changing consumer preferences, and emerging product categories that continue to challenge traditional market players.