The latest CGA by NIQ data has revealed mixed fortunes for beer sales in Australia’s pubs, bars and restaurants.

It shows beer sales by volume in the last 12 months have grown by 0.5% year-on-year. However, with trading challenges intensifying, they have dropped by 5% in the latest 12-week period.

The picture is slightly brighter by value, with year-on-year growth of 6.5% in the last 12 months and 0.3% over the latest 12-week period.

NSW and Victoria are comfortably Australia’s two biggest states for beer sales, with volume shares of 32% and 28% respectively. However, they have also seen some of the steepest drops in sales. Volumes in the second quarter of 2024 were 6% and 2% behind the same period in 2023, and there were even sharper falls compared to the first quarter—of 13% and 17%. Smaller states have been slightly more resilient in recent months, with Queensland’s volumes from April to June down by only 6% quarter-on-quarter.

Beer sales have dropped in all major sales channels in 2024. Restaurants—which are the most important source of sales with 29% of volumes—have recorded a 13% drop between the first and second quarters of 2024. Nightclubs fared better with a dip of 9%, though conditions have been challenging here too, and they remain a small part of the channel mix with only 4% of total volumes.

Australia’s favourite beer style

Lager is Australia’s favourite beer by style commanding half (51%) of all volumes, but sales have fallen by 12% quarter-on-quarter. Spending has also dropped by double digits in other popular styles, including pale ale (down 15%) ale (down 11%) and Pacific ale (down 15%). 

There has also been a shift towards lower alcohol beer styles, with light strength volumes level with 12 months ago and mid strength losing the largest proportion of share.

CGA by NIQ Senior Manager – Customer Success, Liquor Thomas Graham said: “Beer volumes in the last year have been resilient, certainly in the first three quarters as consumers turned to beer to adapt to cost-of-living pressures, with the category seeing the benefits of value-driven consumer mindsets. The decline more recently is due to the economic situation in Australia. As the household savings ratio is now at a 17-year low, and those all-important 35–54-year-olds who are most likely to drink beer being the ones more-likely to be affected by these economic challenges.”