Increasing Demand for Michigan's Emerging Hard Cider Industry Through Communication and Promotion

Research Date
Steven Miller
Best Practices, Market Research
Crop Categories
Beverage Categories

This research investigates the economic contributions of Michigan’s growing hard cider industry while accounting for substitution of competing products including beer, wine, hard seltzer, and mixed drinks. Discrete choice experiments were conducted to gauge relative willingness to pay across competing products under the assumption of at home consumption and on-premise consumption. The findings suggest that consumers are willing to pay around $6.98 for a 12 oz hard cider and are generally willing to pay a premium of $1.41 if that cider is produced instate. Using supply chain modeling, we estimate that the gross economic impact of Michigan’s hard cider production on the state’s economy is $35.1 million in terms of additional Gross State Product. The expected economic impact will increase in proportion to the growth of in-state sales, and by a lesser extent by export sales. This work is the first estimate to our knowledge to provide an economic impact estimate of hard cider along the full supply chain, and the first study to provide cross-product price elasticities of cider with other adult beverage options. The findings have implications for local cider producers as well as state policymakers and industry regulators.

View: 20 1790 Technical Report (PDF)

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