Beer purchasing rises to ‘expansion’ levels in March, first time in 2024

After a quiet start to the beer industry’s year, March saw distributor ordering levels kick into gear, according to the National Beer Wholesalers Association’s (NBWA) Beer Purchasers’ Index (BPI). The BPI rose to 53 — the first reading above the expansionary benchmark (50) in 2024 and the highest March BPI reading since 2021.  

NBWA’s BPI is the only forward-looking indicator for distributors to measure expected beer demand. The index surveys beer distributors’ purchases across different segments and compares them to previous years. A reading greater than 50 indicates the segment is expanding, while a reading below 50 indicates the segment is contracting.

The combination of readings for the BPI (53) and at-risk inventory (47) measures, along with increased YoY ordering volumes in six of seven measured segments, points to a significant shift toward a more positive outlook for the beer industry in 2024.

Notable segment results include double-digit jumps for Premium Regular and FMB/Seltzer. While still in contraction territory at a reading of 36, the Craft segment saw its highest non-summer season (May-August) ordering levels since April 2022.  

Looking across the segments for March:

• The index for imports continues to point to expanding volumes with a March 2024 reading at 66, four points higher than the March 2023 reading of 62.
• The craft index at 36 for March 2024 continues to signal contraction in this segment; however, the current reading is significantly higher than the March 2023 reading at 28.
• The premium lights index moved into expansionary territory at 53 for March 2024 compared to the March 2023 reading at 47.
• The premium regular index rose to 47 for March 2024, ten points above the March 2023 reading at 37.
• The below premium segment for March 2024 fell to 47 from 53 in March 2023.
• The FMB/seltzer reading for March 2024 at 34 is significantly higher than the March 2023 reading at 21.
• Finally, the cider segment posted a March 2024 reading at 35 compared to 31 for March 2023.