Beer Wholesale

Revenue growth for the Beer Wholesaling industry has been hindered by shifting alcohol consumption trends among consumers, particularly millennials. Americans have been consuming less beer and opting for alternative alcoholic beverages. However, the industry has continued to benefit from laws that prevent the vertical integration of breweries and retailers. After the Prohibition era, nearly every state enacted a three-tier distribution system, requiring three distinct levels within the alcoholic beverage supply chain, including producer, distributor and retailer.As a result, beer wholesalers have a protected role, purchasing beer from producers before storing and transporting it to downstream retailers. Since 2020, the COVID-19 (coronavirus) pandemic has resulted in rising demand for industry operators, with revenue rising 5.1% and 4.0% in 2020 and 2021, respectively. On aggregate, IBISWorld estimates that industry revenue has grown at an annualized rate of 2.5% to 2.4% to $88.4 billio