Things are changing! This is the time of year when I see a LOT of my old friends from the beer world attend the conferences, and festival season starts going strong. Let’s dive into the world of craft beer and explore the latest trends and market dynamics.

Craft Beer Market Trends:

1. Market Decline and Maturation:

   • The craft beer industry in the United States has matured, and its growth is slowing down. Beer, as a whole, is losing popularity, and craft beer is not immune to this trend.

   • Consumers are increasingly turning their attention to spirits and flavored alcoholic beverages. Younger generations are also showing interest in non-alcoholic options.

   • Craft beer, being a higher-priced beverage, is affected by consumer belt-tightening due to rising inflation.

   • Despite challenges, independent brewers still account for more than one out of eight beers sold in the U.S., and beer drinkers spend roughly one out of four beer dollars on small and independent brews.

2. Craft Beer Statistics:

   • Retail dollar sales of craft beer in the U.S. reached $28.4 billion.

   • Craft beer’s share of the retail beer market has been declining, currently standing at 12.3% by volume.

   • The number of craft breweries in the U.S. continues to grow, but for the first time, brewery closings nearly matched openings.

3. Brewery Trends for 2024 and Beyond:

   • Taproom Evolution:

     • Taprooms must innovate to provide more than just beer. Consumers seek experiences beyond new releases.

     • Increased community engagement, events, and food offerings are essential for taproom success.

   • Balanced Portfolios:

     • Breweries are diversifying their beer offerings. The pendulum is swinging back from hazy IPAs to include other hoppy varieties and styles like dark lagers.

   • Zero-Carbonation Alcoholic Beverages:

     • Expect to see more non-carbonated alcoholic drinks, influenced by the rise of hard tea.

   • Increased Brewery Consolidation:

     • Smaller breweries may collaborate or consolidate to share resources and reduce costs.

   • Brand Values Matter:

     • Consumers increasingly consider a brewery’s values and ethos when choosing beer. Authenticity and community involvement are selling points.

4. Different Sized Breweries:

   • Macro Breweries:

     • Produce over 6,000,000 barrels annually.

     • Examples: Budweiser, large-scale domestic breweries.

   • Microbreweries:

     • Produce between 15,000 and 6,000,000 barrels per year.

   • Nano Breweries:

     • Produce less than 500 barrels annually.

     • Offer unique, small-batch beers and often focus on taproom experiences.

This is the kind of stuff I used to nerd out about and also fret about from 2013 to 2018. Now, I don’t worry about it at all, but I do find it interesting that so many people are cutting back on drinking or stopping altogether.

While the craft beer landscape is evolving, it remains a vibrant industry with room for creativity and adaptation. Cheers to the future of brewing! 🍻