PrepLounge - link to homepage PrepLounge - link to homepage
Consulting Consulting
Consulting Finance General
Login Sign up for free Sign up for free
Consulting Finance General
Community
Meeting Board
Consulting Q&A
Interview Partner
Premium Membership
Coaching
Coaches
Coaching Packages
Consulting Q&A
Resources
Case Interview Basics
Case Library
AI Casebot
Tests & Guides
Mental Math Tool
Stress Questions
Drills
Video Tutorials
Brainteaser
Career
Employers
Career Events
Consulting Jobs
Consulting Blog
Sign up for free
Login
Community
Meeting Board
Consulting Q&A
Interview Partner
Premium Membership
Coaching
Coaches
Coaching Packages
Consulting Q&A
Resources
Case Interview Basics
Case Library
AI Casebot
Tests & Guides
Mental Math Tool
Stress Questions
Drills
Video Tutorials
Brainteaser
Career
Employers
Career Events
Consulting Jobs
Consulting Blog
Schedule mock interviews on the Meeting Board, join the latest community discussions in our Consulting Q&A and find like-minded Interview Partners to connect and practice with!
Meeting Board
Consulting Q&A
Interview Partner
Premium Membership
Back to overview
Anonymous A
on Sep 06, 2018
Global
I want to receive updates regarding this question via email.

How many six-packs of beer are sold in a year in the U.S.

Hey guys, 

Would be great to get some insights how to structure the above market sizing case and share some results. 

I tried to estimate it by segmenting for female and male population (males tend to consume more beer) and then for each I calculate how many beers they consume in a year divided by the amount of beers per sixpack package (6 obviously) in order to get the yearly amount of six pack packages. In order to calculate the yearly beer consumption I broke it down into consumption of beers per week for low consumers, middle consumers and heavy consumers of beer.
As an end result I got 7,2 billion sixpacks a year. 

I do not find any information regarding the correct result. Furthermore, I have difficulties to exclude the individually sold beers and the larger than 6 packs packages (8, 13 packs) as well as the beer consumed in restaurants/bars in my structure. In my calculations above I assumed that beer will be consumed only via six packs - obviously not correct. 

Thanks a lot!!,

Best, Cédric

1
5.2k
22
Write an answer
Be the first to answer!
Nobody has responded to this question yet.
Top answer
Deleted user
edited on Sep 06, 2018

Cédric, 

an important thing to keep in mind: There is no right answer for market sizing cases (I mean there is obviously the true number, which I doubt anyone knows for certain). But the number you come up with does not really matter as long as it is not obviously way, way off. If you'd say that the 300 mln Americans consume only 3 mln beers a year, then I would question your business sense and your judgment. 

So the key to market sizing exercises is how you approach them. There is ONE THING that you need to show: Are you able to formulate a set of assumptions and hypotheses that get you a somewhat plausible answer?

The approach you took sounds pretty plausible: 

  1. Start with the entire population
  2. Take out children
  3. Segment into consumer groups (men, women, high / mid / low / zero consumption)
  4. Assume a size for each group
  5. Assume a level of consumption of six-packs for each group 
  6. Do the math

One word of warning, though. All these approaches have the tendency to get very complex very quickly - by step three you already had 8 consumer groups to keep track of.

It is ok to take some simplifying assumptions - like saying there is only high or low consumption, but nothing in between. You can usually see from the interviewer's questions or reactions if you're simplifying too much. 

Also, make sure you are using round numbers as long as possible. Let's say you assume that 30% of the 300 mln Americans don't drink beer (minors, abstinents, people who don't like it, etc.) - that would get you a beer drinking population of 210 mln. It's totally ok to say in the interview that you continue the calculation with a simplified figure of 200 million. Makes things A LOT easier, as long as you make explicit what you're doing. 

Last hint: Write shit down. Even if you can do the math easily in your head. And label the numbers!

Because:

A - helps you keep track of every assumption and interim result
B - easier to walk someone through your thinking
C - easier to spot mistakes
D - buys you some time

So our case might look something like this:

US population: 300 mln
Non-beer drinkers: 30%
Beer drinking population (BDP): 300 mln x (1 - 30%) = 210 mln (simplified: 200 mln)
Split male/female in BDP: 60 / 40 
Male BDP: 200 mln x 60% = 120 mln

And so on...

1
0 comments
Sign up for free to read all answers.
Sign up for free to read all answers.
Yes, I would like to be informed about new content, exciting jobs, relevant events, and selected employers.
By creating an account, I confirm that I agree to PrepLounge's Terms of Use. Please read our Privacy Policy.
Sign up with
You already have an account? Log in here.
Similar Questions
Consulting
Guesstimate question - number of airplanes in the sky
on Aug 20, 2024
Global
4
2.3k
Top answer by
Hagen
Coach
#1 recommended coach | >95% success rate | 9+ years consulting, interviewing and coaching experience
56
4 Answers
2.3k Views
+1
Consulting
How to estimate the market size of the European bicycle market?
on Nov 28, 2024
Global
5
1.3k
Top answer by
Maria
Coach
Ex-McKinsey Engagement Manager in NYC | Part of the McKinsey Private Equity Practice
37
5 Answers
1.3k Views
+2
Consulting
Help - Market Sizing is always off by a 2-3 multiple
on Jun 05, 2025
Global
8
300+
Top answer by
Hagen
Coach
#1 recommended coach | >95% success rate | 9+ years consulting, interviewing and coaching experience
15
8 Answers
300+ Views
+5
Related Article
Market Sizing
Questions about market size are frequently asked in case interviews in consulting because they require a blend of logic, mathematics, and common sense. They can be asked as standalone questions or as part of a larger case. Applicants who are familiar with market sizing questions can really perform here. What Are Market Sizing Cases?If you're applying to top consulting firms like McKinsey, BCG, or Bain, you're unlikely to escape a market estimation case. Market sizing cases are considered "back-of-the-envelope" calculations because they can be done on the back of an envelope. Despite the name, it's not just about estimating market sizes; other estimations may also be asked for.For example, if you're discussing a British clothing retailer's growth strategy, you could calculate on an envelope how large the online clothing market is and what percentage of the market the retailer already penetrates. If you perform these calculations quickly, the conversation with the client stays fluid, leaving a good impression.You can receive the question about market size as a standalone case (although this is less common) or as part of a more comprehensive problem, such as market entry. The good news: There's no right or wrong answer when it comes to the question of market size. The interviewer is less concerned about the specific number you come up with for the market than the approach you took to arrive at that number. Why Are Market Sizing Cases Commonly Used in Consulting Interviews?Market Sizing Cases are used to test your quantitative and logical abilities. The interviewer wants to ascertain whether you work well with numbers and if you can make informed assumptions and deal with ambiguities. Questions about market size aren't just about the size of markets; they also involve other types of estimations, such as the number of golf balls in a jumbo jet. As you may have noticed, math is crucial in tackling these questions since you don't have a calculator to rely on. Most importantly, you need to be comfortable dealing with large numbers like millions and billions as well as percentages. More on that later. How Do You Best Approach Market Sizing Cases?Now that we understand the theory behind Market Sizing Cases and their relevance to your case interview, let's take a closer look at the process.Segmentation – The Key to Market Sizing CasesIf you've done some reading on case interviews before delving into market sizing questions, you might have come across areas where segmentation is necessary. Segmenting data is a crucial skill you must master as both a candidate in a case interview and in your later career as a consultant. Segmentation generally refers to dividing a larger whole into smaller parts or segments. The principle you need to understand to do this correctly is the MECE principle.MECE stands for "mutually exclusive, collectively exhaustive." Simply put, segmenting a group of data according to the MECE principle means forming subgroups that do not overlap but collectively cover the entirety of the data, meaning no data is missing. An example useful for market sizing questions is dividing a country's population into age groups (as different age groups often behave differently).Below is a breakdown into Group 1 in the age range 0 to 14, Group 2 in the age range 15 to 64, and Group 3 for everyone over 65: Note that none of the groups overlap, so no age is counted twice, but also no age is overlooked. Now that the population is correctly segmented, we can treat each group differently. If we had divided the population of the United Kingdom into the aforementioned groups, we could estimate clothing expenditures per person in these groups in online retail. Common sense suggests that expenditures per person in the 0-14 age group are lower than in the 15-64 age group. We can justify this estimation by noting that the majority of 0-14-year-olds do not purchase their clothing online. 
View article
Related Case
Company case by
RWE Consulting
RWE Consulting Case: Floating Wind in Japan
5.0
28.5k times solved
Intermediate
Interviewer-led
Open case
Similar Questions
Consulting
Guesstimate question - number of airplanes in the sky
on Aug 20, 2024
56
4
2.3k
Consulting
How to estimate the market size of the European bicycle market?
on Nov 28, 2024
37
5
1.3k
Consulting
Help - Market Sizing is always off by a 2-3 multiple
on Jun 05, 2025
15
8
300+
Everything for Your Career
  • Interview Coaching
  • Q&A
  • Interview Partner
  • Mental Math Tool
  • Interview Drills
  • Stress Questions
  • Blog
Everything for Your Career
  • Interview Coaching
  • Q&A
  • Interview Partner
  • Mental Math Tool
  • Interview Drills
  • Stress Questions
  • Blog
Popular in Consulting
  • Case Library
  • Meeting Board
  • Interview Partner
  • Case Interview Basics
  • Case Interview
  • Consulting Q&A
Popular in Finance
  • Finance Q&A
  • Interview in Investment Banking
  • Investment Banking Salaries
Popular in Consulting
  • Case Library
  • Meeting Board
  • Interview Partner
  • Case Interview Basics
  • Case Interview
  • Consulting Q&A
Popular in Finance
  • Finance Q&A
  • Interview in Investment Banking
  • Investment Banking Salaries
Consulting and Finance Employers
  • RWE Consulting
  • Whiteshield Advisory
  • All Employers »
About PrepLounge
  • For Companies
  • For Universities
  • For Coaches
  • About Us
  • Career
  • FAQ
© 2012 PrepLounge
Our servers are powered by electricity from renewable sources.
  • Cookies & Privacy
  • Terms & Conditions
  • Imprint
  • Sitemap
  • Contact
Facebook Linkedin Instagram TikTok Youtube
Questions or Feedback?
Select category
  • Select category
  • General Feedback
  • Case Interview Preparation
  • Coaching
  • Technical Problems
  • Other
Your name
Your email address
Cancel