Breweries
Description
Companies in this industry produce beer, ale, malt liquor, and nonalcoholic beer. Major companies include AB InBev (Belgium), Asahi Breweries (Japan), Carlsberg Group (Denmark), China Resources (CR) Beer and Tsingtao Brewery (both based in China), Heineken (the Netherlands), and Molson Coors (US). DG Yuengling & Son is the leading US craft brewer by sales volume in 2024, according to Brewers Association (BA).
The global beer market amounts to about $675 billion in 2026 and is expected to grow annually by 2.7% from the 2026 to 2030 period, according to Statista. The largest beer-producing nations include China, the US, and Brazil.
The US brewery industry includes about 3,300 establishments (single-location companies and units of multi-location companies) with combined annual revenue of about $30 billion.
COMPETITIVE LANDSCAPE
Large breweries dominate the global beer market, but smaller craft breweries have gained market share in recent years by introducing a variety of new products that sell at higher price points. Some major beer makers have acquired popular craft brands to limit competition from the fast-growing sector. Small producers in some markets have also benefited from regulatory changes that have made it easier to self-distribute directly to retailers without having to sell through wholesalers. Breweries compete with distilleries, wineries, and other manufacturers of alcoholic and nonalcoholic beverages.
Imports, which account for about 20% of the US market, are becoming increasingly competitive with domestic beers. The top five countries from which the US imports beer are Mexico, the Netherlands, Belgium, Ireland, and Germany. Exports represent about 10% of US brewery production. Mexico, Canada, Turkey, South Korea, and Thailand are the top five countries buying US beer.
The profitability of individual companies depends on marketing, distribution, and operational efficiency. Large companies have advantages in marketing and sales, economies of scale in production, and influence with distributors. Small companies can compete effectively by developing specialty products. The US industry is highly concentrated: the 50 largest breweries account for about 80% of industry revenue.
Competitive Advantages:
Premiumization – As overall beer sales have leveled off in the US, breweries are competing for customers who are willing to pay more for premium and craft products. Younger drinkers are a valuable demographic because they are less price-sensitive than average consumers; however, they also have less brand loyalty.
Product Innovation – Many breweries have developed new product lines in recent years to capitalize on consumers' eagerness to try new beers. Marketing a variety of styles and unique flavors can be an effective way to keep customers interested and nimbly adapt to changing trends.
Distributor Relationships – Establishing productive relationships with local and regional beverage distributors is a necessity for breweries, and competition for their business can be intense. While the largest beer makers have significant leverage in negotiating favorable distribution contracts, many wholesalers have been diversifying their product selections as sales of major brands have slowed. Some distributors offer specialized services and promotional support for new craft brands entering the market.
Companies to Watch:
Anheuser-Busch InBev is the world's largest brewing company, producing about 25% of all beer worldwide. The Belgian company, which owns more than 500 brands (including Budweiser, Corona, Stella Artois, and Modelo), acquired top rival SABMiller for $108 billion in 2016.
Heineken, the second-largest global beer maker by volume, operates more than 160 breweries in 70-plus countries. In addition to its namesake beer, the Dutch company's other brands include Amstel, Strongbow Ciders, Sol, and Desperados, as well as about 250 international, regional, and specialty beers.
Molson Coors, the parent company of Molson Coors Beverage Co. (formerly known as MillerCoors), has a portfolio of brands led by Miller Lite, Coors Light, and Molson Canadian. The company has a significant international presence. In Canada, it accounts for more than a quarter of beer sales nationwide.
China Resources manufactures Snow, the world's top-selling beer brand by volume. The government-controlled company purchased SABMiller's interest in Snow from AB InBev following the companies' 2016 merger.
PRODUCTS, OPERATIONS & TECHNOLOGY
Major products of breweries include beer and ale account for about 97% of the industry's revenue, followed by alcoholic beverages at about 3%. The two primary categories of beer, ales and lagers, are distinguished by yeast types and brewing temperatures. Popular types of ale include pale and dark ales, India pale ales (IPAs), hefeweizens, porters, and stouts; lager varieties include pilsners, bocks, and Oktoberfest beers. American adjunct lager, by far the most popular beer style in the US, is a light-bodied beer with moderate alcohol levels that is characterized by the use of nontraditional grains such as rice and corn.
The brewing process typically takes two to five weeks, depending on the product. Breweries crack purchased malts (germinated grains that have been dried) by milling and then add water to form a mash, a mixture of hot water and crushed grain. The mash is heated and stirred in a mash tun, a large cask for liquids, to convert the mixture into fermentable sugars. The mixture is then strained and rinsed in a lauter tun to produce wort, a liquid with high levels of fermentable sugars. The wort flows from the wort receiver into a brew kettle that boils and concentrates the liquid. The resulting flavor of the wort depends on the hops additives, temperature, and length of brewing.
The next steps include straining, cooling, and storing in a fermentation cellar. Brewers add yeast to jumpstart fermentation, which converts sugars into alcohol and carbon dioxide, the source of carbonation. The fermented beer cools for about a week until it clarifies and develops the desired flavor. Filtration, if used, removes extra yeast, after which the brew is ready to package for delivery to distributors. Breweries package beverages in bottles or cans, typically in 6- or 12-packs, for delivery in cases for eventual retail sale, and in barrels or kegs for on-premise draft (draught) sales. A barrel is 31 US gallons; a keg is a half-barrel.
Breweries' packaging choices reflect both practical concerns and marketing efforts. The recyclability and portability of aluminum cans has contributed to their growing popularity among craft brewers in recent years. Many small brewers are shifting to cans because they are portable, environmentally friendly, and better at preserving product freshness compared to glass bottles. Breweries are experimenting with new variations on the traditional aluminum can, including cans with resealable lids and packaging designed to accentuate certain flavors.
Large brewing plants are typically located near major distribution centers to minimize shipping costs. Most producers have a single brewery and from one to dozens of wholesalers. Breweries have contracts (equity agreements) with each wholesaler that specify the distributor's rights and responsibilities, including geographical sales territory, brands they can sell, sales performance standards, and warehousing requirements that ensure freshness. Some breweries also have contracts to sell beer from international producers.
The key industry production metric is volume, measured in number of barrels a brewery produces per year. US breweries produce over 195 million barrels annually. Small breweries produce less than 6 million barrels annually. Regional breweries produce between 15,000 and 6 million barrels a year, whereas microbreweries produce less than 15,000. A brewpub is a restaurant-brewery that sells at least 25% of its beer onsite, sometimes directly from its storage tanks.
Small and regional craft breweries are independent (less than 25% ownership or control by a big beer company) producers that predominately utilize traditional ingredients: water, malted grain (most commonly barley), yeast, and hops. Craft brewers may use nontraditional ingredients, or adjuncts, to enhance flavor, but generally do not use unmalted grains to lighten flavor or as a lower-cost substitute for malted grains.
Breweries obtain raw materials through contractual agreements and on the open (spot) market. Grain crops are subject to adverse weather, so companies have secondary sources as alternatives, especially for barley. In addition to barley, corn, rice, and other grains, breweries buy malt and sweeteners, including dextrose, corn syrup, cane and beet sugar, and sugar substitutes. Packaging materials include paperboard, aluminum cans, bottles, barrels, and kegs. The cost of aluminum cansheet can be volatile. Long-term contracts and hedging help manage supply and costs. Larger breweries typically own or have an equity investment in multiple supplier companies.
The global beer market amounts to about $675 billion in 2026 and is expected to grow annually by 2.7% from the 2026 to 2030 period, according to Statista. The largest beer-producing nations include China, the US, and Brazil.
The US brewery industry includes about 3,300 establishments (single-location companies and units of multi-location companies) with combined annual revenue of about $30 billion.
COMPETITIVE LANDSCAPE
Large breweries dominate the global beer market, but smaller craft breweries have gained market share in recent years by introducing a variety of new products that sell at higher price points. Some major beer makers have acquired popular craft brands to limit competition from the fast-growing sector. Small producers in some markets have also benefited from regulatory changes that have made it easier to self-distribute directly to retailers without having to sell through wholesalers. Breweries compete with distilleries, wineries, and other manufacturers of alcoholic and nonalcoholic beverages.
Imports, which account for about 20% of the US market, are becoming increasingly competitive with domestic beers. The top five countries from which the US imports beer are Mexico, the Netherlands, Belgium, Ireland, and Germany. Exports represent about 10% of US brewery production. Mexico, Canada, Turkey, South Korea, and Thailand are the top five countries buying US beer.
The profitability of individual companies depends on marketing, distribution, and operational efficiency. Large companies have advantages in marketing and sales, economies of scale in production, and influence with distributors. Small companies can compete effectively by developing specialty products. The US industry is highly concentrated: the 50 largest breweries account for about 80% of industry revenue.
Competitive Advantages:
Premiumization – As overall beer sales have leveled off in the US, breweries are competing for customers who are willing to pay more for premium and craft products. Younger drinkers are a valuable demographic because they are less price-sensitive than average consumers; however, they also have less brand loyalty.
Product Innovation – Many breweries have developed new product lines in recent years to capitalize on consumers' eagerness to try new beers. Marketing a variety of styles and unique flavors can be an effective way to keep customers interested and nimbly adapt to changing trends.
Distributor Relationships – Establishing productive relationships with local and regional beverage distributors is a necessity for breweries, and competition for their business can be intense. While the largest beer makers have significant leverage in negotiating favorable distribution contracts, many wholesalers have been diversifying their product selections as sales of major brands have slowed. Some distributors offer specialized services and promotional support for new craft brands entering the market.
Companies to Watch:
Anheuser-Busch InBev is the world's largest brewing company, producing about 25% of all beer worldwide. The Belgian company, which owns more than 500 brands (including Budweiser, Corona, Stella Artois, and Modelo), acquired top rival SABMiller for $108 billion in 2016.
Heineken, the second-largest global beer maker by volume, operates more than 160 breweries in 70-plus countries. In addition to its namesake beer, the Dutch company's other brands include Amstel, Strongbow Ciders, Sol, and Desperados, as well as about 250 international, regional, and specialty beers.
Molson Coors, the parent company of Molson Coors Beverage Co. (formerly known as MillerCoors), has a portfolio of brands led by Miller Lite, Coors Light, and Molson Canadian. The company has a significant international presence. In Canada, it accounts for more than a quarter of beer sales nationwide.
China Resources manufactures Snow, the world's top-selling beer brand by volume. The government-controlled company purchased SABMiller's interest in Snow from AB InBev following the companies' 2016 merger.
PRODUCTS, OPERATIONS & TECHNOLOGY
Major products of breweries include beer and ale account for about 97% of the industry's revenue, followed by alcoholic beverages at about 3%. The two primary categories of beer, ales and lagers, are distinguished by yeast types and brewing temperatures. Popular types of ale include pale and dark ales, India pale ales (IPAs), hefeweizens, porters, and stouts; lager varieties include pilsners, bocks, and Oktoberfest beers. American adjunct lager, by far the most popular beer style in the US, is a light-bodied beer with moderate alcohol levels that is characterized by the use of nontraditional grains such as rice and corn.
The brewing process typically takes two to five weeks, depending on the product. Breweries crack purchased malts (germinated grains that have been dried) by milling and then add water to form a mash, a mixture of hot water and crushed grain. The mash is heated and stirred in a mash tun, a large cask for liquids, to convert the mixture into fermentable sugars. The mixture is then strained and rinsed in a lauter tun to produce wort, a liquid with high levels of fermentable sugars. The wort flows from the wort receiver into a brew kettle that boils and concentrates the liquid. The resulting flavor of the wort depends on the hops additives, temperature, and length of brewing.
The next steps include straining, cooling, and storing in a fermentation cellar. Brewers add yeast to jumpstart fermentation, which converts sugars into alcohol and carbon dioxide, the source of carbonation. The fermented beer cools for about a week until it clarifies and develops the desired flavor. Filtration, if used, removes extra yeast, after which the brew is ready to package for delivery to distributors. Breweries package beverages in bottles or cans, typically in 6- or 12-packs, for delivery in cases for eventual retail sale, and in barrels or kegs for on-premise draft (draught) sales. A barrel is 31 US gallons; a keg is a half-barrel.
Breweries' packaging choices reflect both practical concerns and marketing efforts. The recyclability and portability of aluminum cans has contributed to their growing popularity among craft brewers in recent years. Many small brewers are shifting to cans because they are portable, environmentally friendly, and better at preserving product freshness compared to glass bottles. Breweries are experimenting with new variations on the traditional aluminum can, including cans with resealable lids and packaging designed to accentuate certain flavors.
Large brewing plants are typically located near major distribution centers to minimize shipping costs. Most producers have a single brewery and from one to dozens of wholesalers. Breweries have contracts (equity agreements) with each wholesaler that specify the distributor's rights and responsibilities, including geographical sales territory, brands they can sell, sales performance standards, and warehousing requirements that ensure freshness. Some breweries also have contracts to sell beer from international producers.
The key industry production metric is volume, measured in number of barrels a brewery produces per year. US breweries produce over 195 million barrels annually. Small breweries produce less than 6 million barrels annually. Regional breweries produce between 15,000 and 6 million barrels a year, whereas microbreweries produce less than 15,000. A brewpub is a restaurant-brewery that sells at least 25% of its beer onsite, sometimes directly from its storage tanks.
Small and regional craft breweries are independent (less than 25% ownership or control by a big beer company) producers that predominately utilize traditional ingredients: water, malted grain (most commonly barley), yeast, and hops. Craft brewers may use nontraditional ingredients, or adjuncts, to enhance flavor, but generally do not use unmalted grains to lighten flavor or as a lower-cost substitute for malted grains.
Breweries obtain raw materials through contractual agreements and on the open (spot) market. Grain crops are subject to adverse weather, so companies have secondary sources as alternatives, especially for barley. In addition to barley, corn, rice, and other grains, breweries buy malt and sweeteners, including dextrose, corn syrup, cane and beet sugar, and sugar substitutes. Packaging materials include paperboard, aluminum cans, bottles, barrels, and kegs. The cost of aluminum cansheet can be volatile. Long-term contracts and hedging help manage supply and costs. Larger breweries typically own or have an equity investment in multiple supplier companies.
Table of Contents
- Industry Overview
- Quarterly Industry Update
- Business Challenges
- Business Trends
- Industry Opportunities
- Call Preparation Questions
- Financial Information
- Industry Forecast
- Web Links and Acronyms
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