The Argentine Craft Beer Recession: Why Has Consumption Dropped by 30%?

This post is also available in: Español Português

The craft beer sector in Argentina is undergoing a transformation marked by a sharp decline in consumption, shifts in consumer preferences, and a challenging economic context.

According to local experts like Martín Boan (Bierlife), Eduardo Page (Hormiga Negra), and Rulo Bustillo (Jabalina), consulted in an article published by Ámbito, the market contraction has reached approximately 30% over the last 18 months, particularly affecting more complex and expensive styles.

The comeback of classic blondes

As consumers become more selective and budget-conscious, mild and accessible styles like Blonde Ale, Golden Ale, and Pilsner have regained prominence.

These low-alcohol, less bitter, and highly drinkable styles are displacing more heavily hopped varieties like IPA and Hazy, which were previously synonymous with trends.

This shift in preferences responds to both taste and economic factors. With prices starting at AR$4,400 (USD3.5) per glass and exceeding AR$6,000 (USD4.8) for more elaborate styles, beer selection is no longer just about palate but also about necessity.

Bars remain the main sales channel, with a strong presence of draft beer from barrels, although some producers have found relief in selling 473 ml cans to specialty stores.

Production and demand in adjustment

Facing declining demand, many producers have opted to reformulate their recipes, reduce flavor intensity, or lower alcohol content to avoid increasing the final product cost.

Additionally, higher-volume beer styles help maintain operations without relying exclusively on niche markets.

This change has also affected market dynamics. While some brands are forced to close or reinvent themselves, others emerge with quality-focused proposals, moderate innovation, and more efficient distribution strategies.

Tax burden and industry demands

One of the most debated issues among brewers is the tax pressure. Currently, craft beer pays an 8.9% internal tax, unlike wine, which is exempt.

The Argentine Chamber of Craft Brewers (CCAA) is promoting meetings with authorities to seek tax reductions that would allow greater competitiveness, formalization of consumption, and revitalization of the gastronomy sector.

Bustillo emphasizes that craft beer represents only 3% of the total market but has a significant impact on local employment and commerce.

A tax reduction could further energize the sector, which already shows signs of resilience despite the context.

Consumers adapt but don’t abandon

Despite the challenges, craft beer culture maintains a loyal consumer base. This community values style diversity, sensory experiences, and food pairings, and is willing to explore new flavors as long as prices remain reasonable.

For many, craft beer is more than a beverage; it’s a cultural and social experience. As the sector adapts, classic blonde beers are establishing themselves as the spearhead of a new era.

Less extravagance, more balance between flavor and price, with an offering geared toward the general public, appear to be the keys to navigating this adjustment period.

Recommended

• How to make Black IPA beer ketchup?: Recipe and step-by-step guide
• Tilray bets on craft beer to survive the cannabis crisis