A New Beer Just Overtook Bud Light in the US. What It Really Means

The bigger they are, the harder they fall. Bud Light, America’s best-selling beer since 2001, was recently overtaken by Modelo Especial as the no. 1 beer in America. But instead of fighting back, it seems that the former king of big beer has now lost even more ground.

According to recent sales data, Modelo retains its position as the top dog, representing 9.7 percent of all beer sales in America. Meanwhile, Michelob Ultra climbs to second place with 7.3 percent. Bud Light slumps to third, with 6.5 percent market share.

Healthy dose of perspective

It might be tempting to fully attribute Bud Light’s fall to recent controversy. But doing so runs the risk of missing what’s really happening to America’s beer habit.

Last April, Bud Light caught itself in a cultural crossfire after sponsoring a one-off Instagram post by transgender activist and TikTok celebrity Dylan Mulvaney.

Photo by Henry Phillips for Gear Patrol

In response, conservative politicians and celebrities like Kid Rock called for a boycott of the brand, as well as its parent company, Anheuser-Busch.

Thing is, the low-carb Michelob Ultra is also an Anheuser-Busch brand, and its own rise sheds light on a growing trend among American drinkers to reach for health-conscious alternatives to traditional beer.

Bubbling to the top

Over the last few years, hard seltzers have seized significant market share, pulling American drinkers away from beer altogether.

Literally hundreds of brands (even those who call themselves “craft”) now offer their own take on the category, if not several. And though hard seltzer sales peaked in 2021, they still generate close to $20 billion every single year. (In fact, one report asserts that hard seltzer, not beer, is the best-selling alcohol among NFL fans.)

Photo by Henry Phillips for Gear Patrol

Booze-free beers and proxies have also exploded in popularity. Non-alcoholic beer sales during Dry January have risen from $13.5 million in 2020 to $42.7 million in 2024, with brands like Athletic Brewing at the forefront.

This summer, the brand — which only sells non-alcoholic beer — doubled its valuation to $800 million after a new round of equity financing, all but confirming that the NA category is no longer a one-month wonder.

Athletic Brewing

Weight and watch

Of course, while Bud Light may be down, it’s not out. The fact that it still represents 6.5 percent of all beer sales means that millions of Americans still drink it.

However, its fall to third place in the national rankings does suggest that there could be something bigger brewing beneath the surface. If so, there’s a good chance that it’s low on carbs, calories, alcohol … or all three.

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