Posted on 04/18/2023 11:33:57 AM PDT by Red Badger
Illustration: Sarah Grillo/Axios
The nation's craft beer market is at an inflection point.
Driving the news: Independent brewery production remained flat at 24.3 million barrels in 2022, according to an annual report released Tuesday from the Brewers Association, the industry's trade group.
The number of new breweries opening decreased for the second consecutive year, while the closings rate increased to 3%.
Why it matters:
Outside of the pandemic slump, this is the first time in history the industry didn't see year-over-year production percentage growth, Axios has learned.
The association has tracked production since the mid-1980s and the previous low point was 0.7% growth in 2000, the association's chief economist Bart Watson told us.
What's happening:
The latest numbers leave major questions about the industry's future as craft beer's core demographic gets older and drinks less full-flavored beer and younger consumers move toward new beverages, such as seltzers and canned cocktails.
"Craft is going to have to do what it's always done — reinvent itself for a new generation of drinkers," Watson told us.
Yes, but: A year ago the industry saw an 8% growth pandemic rebound. And this year, craft still fared better than the overall beer market, which saw production volume decline 3% in 2022.
Craft also slid slightly forward with 13.2% of overall market share, up from 13.1% the year before.
And the number of breweries climbed to an all-time high of 9,552. What they're saying: "This is not a bubble bursting, this is a maturing market," Watson said.
Between the lines:
One reason for the lack of growth is the departure of the largest brewers — most recently Bell's in Michigan and previously New Belgium in Colorado — from the independent beer market. Their growth helped the broader craft industry continue climbing in terms of production.
Both companies — and many others, including Goose Island and Lagunitas — were purchased by international mega brewers and are no longer considered "craft" by the association's definition. The intrigue: Only two craft beer makers landed in the top 50 breweries overall, a list dominated by Anheuser-Busch and Molson Coors.
The five largest craft breweries in terms of production were Yuengling; Boston Beer; Sierra Nevada; Duvel Moortgat, which includes Firestone Walker and Boulevard; and Gambrinus, which owns the Shiner brand.
2) Most craft brews are overpriced
I partly disagree. The market is not saturated but most craft brews are very overpriced. New breweries starting up by charging $8 for a 12oz glass of 4-5% beer is expensive and going to see that brewery close unless it wises up.
I find that hard to believe with all the breweries and craft beer I drink.🍺🍺🍺🍺🍺🍺🍺🍺🍺🍺🍺🍺
When 9 out of 10 beers in the display case are IPAs, my eyes glaze over. I might just start drinking Coors.
I went to my local craft brewery. They make good beer. But all I wanted was a beer. They have something there they brewed that tastes like a coors.
that’s what i ordered.
So, what place is it with the authentic Bavarian beers?
My overwhelming criterion for beer is that it can be shipped unfridgerated by sailing ship to India...said no one ever PH*.
*Pre-Hipster.
Just bought their ultra light, Flight, not bad for a weekend work beer. I’ve had their regular brand quite often.
I’m trying to remember - my last trip out there was pre-Covid.
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