Craft Beer Market in the US 2017-2021
About Craft Beer
Craft beer is the variant of beer that is brewed in a traditional fashion and is usually produced in small quantities. The production of craft beer usually takes place in microbreweries and regional craft breweries dedicated for craft beer manufacturing. Craft beer is usually made with traditional ingredients such as malted barley. The majority of Americans live within 10 miles of a craft brewery. The beer tourism promoted by craft breweries is gaining popularity among the consumers and is expected to attract more consumers to craft beer.Technavio’s analysts forecast the craft beer market in the US to grow at a CAGR of 17.69% during the period 2017-2021.
Covered in this report
The report covers the present scenario and the growth prospects of the craft beer market in the US for 2017-2021. To calculate the market size, the report considers the sale of craft beer to individual consumers.Technavio's report, Craft Beer Market in the US 2017-2021, has been prepared based on an in-depth market analysis with inputs from industry experts. The report covers the market landscape and its growth prospects over the coming years. The report also includes a discussion of the key vendors operating in this market.
Technavio Announces the Publication of its Research Report – Craft Beer Market in the US 2017-2021
Technavio recognizes the following companies as the key players in the craft beer market in the US: Anheuser-Busch InBev, Boston Beer, D.G. Yuengling & Sons, New Belgium Brewing, and Sierra Nevada.
Other Prominent Vendors in the market are: Bell's Brewery, Brooklyn Brewery, Deschutes Brewery, Dogfish Head Craft Brewery, Minhas Brewery, New Glarus Brewing Company, Oskar Blues Brewing Holding, Stone Brewing, and SweetWater Brewing.
Commenting on the report, an analyst from Technavio’s team said: “The latest trend gaining momentum in the market is Increasing dependence on technology throughout the value chain. Drinking habits of consumers are affected by the development of technology. Personalized apps, infusion machines, and home-brewing machines are some of the technological developments. Different apps that are designed to personalize the drinks are available. Bartenders as well as consumers can monitor the composition of the drink. These apps have been developed to make the drinks better and increase their consumption.”
According to the report, one of the major drivers for this market is Increasing number of craft breweries. One of the growth drivers of the craft beer market in the US is the increasing number of craft breweries in the US. More number of players are entering the market owing to the growth potential of the market. The market offers good return on investments, and this is attracting new players who are coming up with new product offerings. The increasing demand from consumers, especially millennials, is also aiding the market growth. The number of breweries is expected to increase during the forecast period to meet the growing demand. The number of craft breweries in the US increased by about 16% in 2016 compared to 2015. California and Colorado are some of the states with the highest number of craft breweries in the US. California has over 600 craft breweries, and Colorado has over 300 craft breweries.
Further, the report states that one of the major factors hindering the growth of this market is High price of craft beer. One of the challenges to the growth of the craft beer market in the US is the high price of craft beers compared to conventional beer products. One pint of local craft beer is priced between $4 and $5. The cost of craft beer is almost twice that of conventional beer. For instance, a 6-pack craft beer in the US from breweries such as Dogfish Head Craft Brewery and Ballast Point will cost about $12, while a 12-pack beer from brands such as Buds and Coors costs less than that. The increasing cost of hops, barley, and malt is one of the reasons for the high cost of craft beer. The increasing costs of labor, water, electricity, and other factors are also contributing to the high price of craft beers. As craft breweries produce small batches of craft beer, they do not have the advantage of economies of scale. The high price of craft beer will deter price-conscious consumers from purchasing the product. It will hinder the growth of the market during the forecast period.
Anheuser-Busch InBev, Boston Beer, D.G. Yuengling & Sons, New Belgium Brewing, Sierra Nevada, Bell's Brewery, Brooklyn Brewery, Deschutes Brewery, Dogfish Head Craft Brewery, Minhas Brewery, New Glarus Brewing Company, Oskar Blues Brewing Holding, Stone Brewing, and SweetWater Brewing.
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