Craft Beer Industry: Growth and Analysis
Few industries have enjoyed the rapid growth experienced by the craft beer industry since 2011. Small and independent breweries have captured substantial market share in the past decade, with both share of industry revenue and the number of small businesses proliferating across the country.
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National Beer Industry Sales
Craft breweries continue to enjoy a growing slice of the industry’s $100.2 billion market, up from $94 billion in pandemic-affected 2022.
Total Volume Sales
In the US, overall beer volume increased by 1% in 2021. Craft brewery sales increased more quickly, at roughly 8%. At the end of 2021, small and independent craft brewers held roughly 13.1% of total beer sales by volume.
Retail Sales
Retail dollars sales increased 21% in 2022, up to $26.8 billion. This shift is largely attributable to the slow return of bar, restaurant and entertainment venues as COVID-19 pandemic restrictions eased.
How Many Craft Breweries Are in the US?
In 2021, there were 9,247 craft breweries in the US, up from 2,252 in 2011. The total number of small and independent breweries has increased every year since 2007.
Is the Craft Beer Industry Growing?
Despite supply chain challenges, COVID-19 restrictions and volatile energy prices, craft beer remains one of the fastest-growing industries by revenue. Since 2005, total craft beer revenue has increased 300%, despite economic headwinds caused by the Great Recession and the short COVID-related recession in 2020.
Regional Brands vs. Community Breweries
One important trend in the past two years is the increased market share of local craft breweries. In 2021, the largest 50 regional craft beer companies accounted for 50.3% of all craft beer sales. Regional companies are larger operations with distribution across a state or several states, such as:
Sam Adams
Sierra Nevada
Yuengling
While these regional companies continue to grow, small breweries captured an additional 2.57% of market share.
Craft Beer Industry Challenges
While the industry continues to enjoy healthy growth, there are several considerable headwinds in 2023 and beyond.
Supply Chain Challenges Linger
Small and independent breweries continue to face both lingering shortages and ill-timed oversupply. Certain materials, including aluminum, remain in short supply and are more expensive as a result. Businesses are also facing increased grain prices, increased equipment and part lead time and, in some cases, an oversupply of perishable ingredients.
Energy Volatility
Energy consumption plays a vital role in the profitability of any craft brewery. Skyrocketing natural gas prices have eaten into profit margins already narrowed by supply chain issues. Many breweries are utilizing Inflation Reduction Act resources to invest in more energy-efficient equipment and processes to decrease the impact of energy prices on production costs. In 2021, electricity use alone costs between $5 and $6.60 per barrel.
Let’s Grow Together
We’re working with craft breweries in Michigan and across the country to increase energy efficiency. Through a detailed energy audit, our team can identify equipment, technologies and processes that can reduce energy expenses and make your facility more profitable. Learn more about our work and get in touch today.