The Value of Craft Beer Styles: Evidence from the Italian Market

This study aims to estimate the market value, or implicit prices, associated with the main craft beer attributes (e.g., beer style, organic, gluten-free, and package-related features) and support producers in detecting the more profitable marketing strategies. For this purpose, we conducted an empirical analysis employing sales data of craft beers from the Italian online market, and we estimated a hedonic price model via ordinary least squares. Results show that the type of package and cup only has moderate effects on price. Furthermore, a moderate premium price is found for gluten-free craft beers, while craft beers with organic labels and Italian origin do not benefit from the higher price. Instead, the beer style adopted strongly affected the product price: the highest premium prices were detected for Barleywine (+49.9%) and Italian Grape Ale (+39.6%) beer styles. Furthermore, relevant premium prices, higher than +25%, were estimated for other beer styles such as Sour, Fruit Beer, and Stout. Results suggest that artisanal breweries can effectively differentiate their product according to the beer style. To the best of our knowledge, the current study offers the first empirical evidence on how beer styles as well as other product characteristics affect the market price of craft beer by using secondary data.

Automated summary

This study aims to estimate the market value associated with craft beer attributes and support producers in detecting profitable marketing strategies. The results show that package type and cup have moderate effects on price, while gluten-free craft beers have a moderate premium price. Craft beers with organic labels and Italian origin do not benefit from higher prices. The beer style strongly affects the product price, with Barleywine and Italian Grape Ale having the highest premium prices.