A new report from Goldman Sachs forecasting a weak outlook for the American beer market is making waves across the drinks industry. Released earlier this week, the report cites changing Millennial tastes—which are shifting away from beer in favor of wine and spirits—as a key factor behind beer’s slowdown, which has been ongoing but seems to be accelerating this year.
Goldman has downgraded its expectations for the beer market over the next two years, anticipating volume declines. The softness is largely being driven by mainstream domestic brands such as Budweiser, Miller Lite and Coors Light. And growth in the craft-brewing segment, which has been the darling of the beer industry the past several years, has decelerated significantly.
Beer’s shrinking sales come as wine and spirits continue to steal share within the drinks industry.