The US alcohol market is a multi-billion dollar industry valued at $261.10 billion in 2022 and is expected to grow annually by 10.51%. It probably comes as no surprise that within this industry, beer comprises the largest segment with a market volume of $111.50 billion in 2022.
It’s safe to say — beer is big business!
But did you know that craft beer is one of the most popular growing markets in the industry? The number of operating craft breweries in the states reached an all-time high in 2020 and 2021, with over 900 operating in California alone.
Even after the pandemic, people’s taste for craft beer continues to grow and retailers would be wise to look into stocking popular local or national brands on their shelves.
According to the Brewers Association, “an American craft brewer is a small and independent brewer.” This means that their annual production is less than 6 million barrels of beer and less than 25% of the brewery is owned or controlled by an alcohol industry member that’s not a craft brewer itself. They created the independent craft brewer seal to help consumers easily differentiate true craft beers from more commercially produced beverages.
Craft brewers are also identified by their commitment to innovation. It's common for craft beers to take feature elements of more traditional beers but with unusual ingredients or brewing processes.
When it comes to small-scale breweries there are a few different types:
This is a brewery that produces 15,000 or fewer barrels of beer a year and sells more than 75% of this off-site. They may also have small tasting rooms or sales counters. Microbreweries might use a distributor such as Buffalo Market to sell their products in grocery stores or bars.
This is a hybrid restaurant and brewery. They must sell at least 25% of their beer on-site and combine this with food service. They may also distribute their beer for sale elsewhere but the majority of it has been brewed for sale in-house.
This is similar to a brewpub in that it sells most of its beer in-house but a taproom is more of a bar, without any significant food service element. They may also distribute their beer for sale elsewhere.
The craft brewing market is enjoying a renaissance in the US and globally after a decline in sales and production in 2019. The innovation of craft brewers is one of the key driving factors attributed to this renewed growth and interest in the market.
A recent study predicts that the rise in CBD-infused craft beers, as well as an enthusiasm for strong and unusual flavors, are drawing in consumers. They state that “consumers are turning towards CBD-infused beers as they have a relatively low-calorie count and the CBD reduces the bitter taste of hops in beer."
They also note “the rising socializing trends” amongst millennials which have bolstered the success of small local taprooms and brewpubs across the country. Forbes reported that the World Beer Cup and the Great American Beer Festival saw a record number of entrants last year.
The craft brewery market is going from strength to strength worldwide too. In China, the industry has increased by 250% with over 1000 breweries currently operating in the country.
The Asia Pacific is “projected to dominate” the global craft beer market share due to rapid urbanization. European markets are also expected to continue to grow year on year.
When it comes to the craft brewing market in the States, the main draw is local breweries and socializing. According to the Chief Economist of the Brewers Association, most Americans live within 10 miles of a brewery, and now many of them live near craft taprooms and brewpubs too.
There is a clear demand for craft beer. In 2021, craft beer’s growth numbers rapidly outpaced the overall beer industry growth of 1%. And the global craft beer market size is projected to reach $210.78 billion by 2028.
The alcoholic beverage industry is not simple, with many other products vying for consumer attention and new options, such as hard seltzers, rising in popularity as well. There are also indications that the next generation of consumers are likely to spend less on alcohol than their older counterparts. However, despite all this, the overall market continues to grow annually and beer remains the largest segment.
When it comes to craft beer, with the market steadily growing there are plenty of options to choose from. When looking to stock shelves or find supplies for your grocery stores or restaurants, we recommend exploring locally to see what craft breweries are operating in your area.
However, there are also some award-winning national and regional options out there. Here are a few of our favorites:
This beer has been described as spicy, fruity, and slightly herbal and was sparked by a bike trip through Europe taken by New Belgium’s co-founder. As he pedaled from country to country he sampled many local beers and found inspiration in their unique flavor profiles.
This ale is happily hoppy with heavy aromas of citrus and pine. Sierra Nevada launched in 1980 using a new hop that revolutionized the craft beer industry. Since then it’s gone from strength to strength and is described as “your favorite brewer’s favorite beer.”
This lager comes with a history lesson. Its origins go back to the pre-prohibition era and it was first brewed in 1890. But not only that, it’s won gold medals at the Great International Beer Festival, and the World Beer Championships and has been described as crisp, refreshing, and perfectly balanced.
This stout is barrel-aged for 8-14 months in a mix of bourbon barrels from American distilleries. It’s boozy like bourbon and will warm you up from the inside with its blend of chocolate, whiskey, vanilla, oak, and molasses flavors with hints of berries and almonds. Watch out though, it’s a strong one!
This Northern California brewery is well known for its best-selling IPAs and now they’ve created a non-alcoholic option that would please even the most hardened beer drinker. It’s described as having a crisp flavor, with hints of citrus.
If you're looking for the best way to get your craft beers into customers' baskets, look no further than Buffalo Market! We're experts in environmentally friendly consumer packaged goods and distribution solutions. See how we can help you today.