Average Retail Price of Beer Varies Widely by State

America is a land driven by market forces leading to inequalities in many areas, among them the price of beer.

Simple Thrifty Living, a personal finance web site, conducted a quick study of beer prices in all 50 states and Washington D.C., then calculated the average price per 24 can case of beer. The results show a wider than expected range in price, from a low of $14.62 to a high of $21.98. This means the state with the highest- priced case charges consumers over 50 percent more than the state with the lowest- priced case.

To make comparisons more ‘apples to apples’, Simple Thrifty Living used only Bud Light and Miller Lite for the study. And for retail comparisons, they consulted two stores: Total Wine and Walmart. The study selected ten stores from each state, making sure to include a good mixture of urban and rural areas and stores located in different zip codes.

To summarize from the map above, these are the ten states with the lowest average price per case of beer:

1. Michigan, $14.62
2. California, $14.87
3. Illinois, $15.00
4. North Carolina, 15.23
5. Connecticut, $15.96
6. South Carolina, $15.96
7. Indiana, $15.98
8. Virginia, $15.98
9. Arizona, $16.35
10. Nebraska, $16.62

These are the ten states with the highest average price per case of beer:

1. Pennsylvania, $21.98
2. Tennessee, $21.97
3. Texas, $21.66
4. North Dakota, $21.38
5. Rhode Island, $21.10
6. Nevada, $20.93
7. Oklahoma, $20.66
8. Alaska, $20.65
9. Wyoming, $20.45
10. Washington D.C, $20.34

We expect economic differences from one state to the next, whether for beer or anything else. But the large spread in prices for beer, I have to admit, was larger than expected. We know that taxes are responsible for part of the differences, and that explains, for example, Texas’ high cost per case. There are other factors, too, like distribution laws that manipulate the rules of supply and demand, pushing prices in some states to higher levels than they would be if competition was less regulated.

Michigan residents are blessed with inexpensive beer, as the survey results show, and California is less expensive than I would have predicted. Of course, one has to remember that only Bud Light and Miller Lite were used for this study. It would be interesting to see a similar study that compared, say, the average price of a case of Sierra Nevada beer or other large- scale craft brew.

The data used in this study include only 10 stores in each state and while Simple Thrifty Living did make sure to use stores in different zip codes and did include a cross section of urban/rural areas, their methodology is not as complete as it probably should be. From what we at Great Beer Now can tell, the study was not conducted in a scientific manner, at least not to the extent necessary to produce the most accurate results. Still, the averages that Simple Thrifty Living calculated seem to be sufficiently accurate to make viable price cross- comparisons between states. In other words, a more accurate study could be conducted, yes, but the results would likely be only slightly different.

Pricing is an intricate mixture of production costs, shipping, taxes, and regulations and few products reflect these complexities more than beer. Simple Thrifty Living’s survey results show that the cost of one of life’s necessities can vary greatly from one part of the nation to the next. Beer lovers should therefore think long and hard before they pack their bags and relocate to one of the states ranked in the top ten.