全球智库信息集成服务系统(G2TT): DP15706 Millennials and the Take-Off of Craft Brands: Preference Formation in the U.S. Beer Industry

G2TT

来源类型	Discussion paper
规范类型	论文
来源ID	DP15706
	DP15706 Millennials and the Take-Off of Craft Brands: Preference Formation in the U.S. Beer Industry
	Bart Bronnenberg; Jean-Pierre Dube; Joonhwi Joo
发表日期	2021-01-24
出版年	2021
语种	英语
摘要	We conduct an empirical case study of the U.S. beer industry to analyze the disruptive effects of locally-manufactured, craft brands on the market structures, an increasingly common phenomenon in CPG industries typically attributed to the emerging generation of adult Millennial consumers. We document a substantial gap in the shares of craft beer consumption across generations. To understand the determinants of this generational share gap, we test between two competing mechanisms: (i) intrinsic generational differences in tastes and (ii) the role of availability on the formation of consumption capital. Our test exploits a novel database tracking the geographic differences in the diffusion of craft brewers across the U.S., dating back to the deregulation of home brewing in 1979 that initialized the launch of craft breweries. Using a structural model of demand with endogenous consumption capital stock formation, we find that consumption capital accounts for 85% of the generational share gap between Millennials and Baby Boomers, with the remainder explained by intrinsic preferences. Through the lens of our model, we predict the beer market structure will continue to fragment over the next decade, with craft beer reaching almost 30% of the market as the distribution of adult consumers shifts increasingly towards young adults with a wide variety of craft beer available as they turn 21 and begin forming a preference.
主题	Industrial Organization
关键词	Craft beer Branding Brand equity Formation of preferences
URL	https://cepr.org/publications/dp15706
来源智库	Centre for Economic Policy Research (United Kingdom)
资源类型	智库出版物
条目标识符	http://119.78.100.153/handle/2XGU8XDN/544713
推荐引用方式 GB/T 7714	Bart Bronnenberg,Jean-Pierre Dube,Joonhwi Joo. DP15706 Millennials and the Take-Off of Craft Brands: Preference Formation in the U.S. Beer Industry. 2021.