USA Beer Craft Market Outlook to 2028

USA Beer Craft Market Overview

USA Beer Craft Market has witnessed significant growth in 2023 as the market reached a valuation of $30 billion, driven by increasing consumer preference for premium and innovative beer options, the rising trend of local and sustainable products, and the growing popularity of craft breweries and taprooms.

Some of the leading companies include Boston Beer Company, Sierra Nevada Brewing Co., New Belgium Brewing Company, Stone Brewing, Deschutes Brewery. These companies have successfully leveraged their innovative brewing techniques, extensive product portfolios, and strong distribution networks to maintain their market positions.

In 2023, Sierra Nevada Brewing Co has launched its first line of non-alcoholic brews, including Trail Pass IPA and Trail Pass Golden, which are marketed to contain less than 0.5% alcohol. These new non-alcoholic offerings are part of the company's commitment to innovation and serving a wider range of drinkers.

USA Beer Craft Current Market Analysis

In 2023, sales of craft beer in the USA reached 23.4 million barrels, up from 22 million barrels in 2022. This growth is fueled by the rising number of craft breweries, which totaled over 9,000 in 2023, offering a wide variety of flavors and styles to cater to different consumer preferences.

Craft beer market has significantly impacted the overall beer industry by promoting competition and innovation. Craft breweries often source local ingredients, support local businesses, and create jobs, contributing to the economic development of their communities.

California remains a dominant state in the USA craft beer market. The presence of renowned breweries like Sierra Nevada and Stone Brewing, coupled with a large and diverse consumer base, drives California's dominance. The state's favorable climate for hops cultivation and its robust beer culture further contribute to its leading position in the craft beer market.

USA Beer Craft Market Segmentation

The USA Beer Craft Market can be segmented based on several factors:

By Product Type: USA Beer Craft Market is segmented by Product Type into Alers, Lagers & Specialty Beers. In 2023, Ales reign as the most dominant sub-segment in the USA beer craft market, due to ongoing innovation in brewing techniques and the introduction of new ale varieties, which have sustained consumer interest and driven market growth.

By Distribution Channel: USA Beer Craft Market is segmented by Distribution Channel into On-Trade & Off-Trade. In 2023, the on-trade segment emerges as the most dominant sub-segment in the USA beer craft market, driven by the growing trend of social drinking and the preference for experiencing craft beer in a communal setting. Additionally, the expansion of craft beer offerings in bars and restaurants has further fueled the on-trade market growth.

By Region: USA Beer Craft Market is segmented by region into North, South, East & West. In 2023, the Western region dominates the USA beer craft market due to its established craft beer culture and the presence of numerous renowned breweries. Additionally, the region benefits from a strong tourism industry that boosts local brewery visits and sales, contributing to its market leadership.

USA Beer Craft Market Competitive Landscape

Company Name

Establishment Year

Headquarters

Boston Beer Company

1984

Boston, Massachusetts

Sierra Nevada Brewing

1980

Chico, California

New Belgium Brewing

1991

Fort Collins, Colorado

Stone Brewing

1996

Escondido, California

Deschutes Brewery

1988

Bend, Oregon

Chutney Sour Beer by New Belgium Brewing: In 2024, New Belgium Brewing recently collaborated with Indian craft beer brand Bira 91 to launch a Chutney Sour beer, which blends a Belgian-style ale with the flavor of tamarind. The beer was simultaneously released in the companies' respective taprooms in India and the United States to coincide with the Indian festival of Holi.

Deschutes Brewery for Sustainability: In 2022, Deschutes Brewery joined the U.S. Department of Energy's Better Climate Challenge, committing to reduce greenhouse gas emissions. These efforts align with the growing consumer preference for eco-friendly products and practices, enhancing Deschutes Brewery's reputation as a sustainable and responsible brewer.

Sapporo-Stone Brewing: In 2022, Sapporo acquired Stone Brewing, the 9th largest craft brewery in the U.S. The deal allowed Sapporo to gain significant brewing capacity on both coasts to meet growing demand for its beers in the U.S. market. Stone Brewing continues to operate its breweries, tap rooms and restaurants under Sapporo's ownership.

USA Beer Craft Industry Analysis

USA Beer Craft Market Growth Drivers:

Expansion of Microbreweries and Brewpubs: In 2023, over 3,500 brewpubs operated nationwide, providing consumers with locally brewed beer and a unique drinking experience. This expansion is supported by the increasing number of craft beer enthusiasts who prefer the fresh, on-site brewed beers offered by these establishments.

Rising Interest in Sustainable and Organic Beers: The growing consumer awareness regarding environmental sustainability and health has led to increased demand for sustainable and organic craft beers. In 2023, the number of breweries adopting sustainable practices, such as using organic ingredients and implementing eco-friendly brewing processes, exceeded 1,200.

Innovation in Brewing Techniques and Flavors: Craft breweries are known for their creativity and innovation in brewing techniques and flavors. In 2023, the market saw the introduction of over 1,000 new beer varieties, ranging from fruit-infused ales to barrel-aged stouts. This continuous innovation attracts adventurous consumers looking for unique and novel beer experiences.

USA Beer Craft Market Challenges:

Intense Market Competition: The USA craft beer market is characterized by intense competition among thousands of breweries. New entrants and smaller breweries face significant challenges in gaining market share and establishing a unique identity. The saturation of the market makes it difficult for these players to differentiate their products and compete with established brands, posing a substantial challenge.

Supply Chain Disruptions: Craft breweries have been impacted by supply chain disruptions, particularly in sourcing raw materials such as hops and malt. These disruptions have led to increased production costs and challenges in maintaining consistent product quality.

Regulatory and Taxation Issues: Craft breweries face complex regulatory and taxation frameworks that vary across states. Navigating these regulations requires significant resources and expertise, which can be particularly burdensome for smaller breweries. The lack of uniformity in regulations across states further complicates operations and expansion plans for craft brewers.

USA Beer Craft Market Government Initiatives:

Craft Beverage Modernization and Tax Reform Act: The Craft Beverage Modernization and Tax Reform Act implemented in 2020 made permanent the reduced tax rates for beer that were previously enacted on a temporary basis. The reduced tax rate of $16 per barrel applies to the first six million barrels of beer brewed by the brewer and removed by the importer into the United States during the calendar year.

Support for Local Craft Breweries: Several states introduced initiatives to support local craft breweries in 2023. California allocated $30 million in funding to promote local craft beer tourism and support small breweries through marketing and infrastructure development. These state-level initiatives aim to boosts the local economy & create jobs.

Facilitation of Market Access and Export Opportunities: In 2023, the U.S. Department of Commerce introduced programs to facilitate market access and export opportunities for craft breweries. The initiatives included trade missions, export training, and financial assistance, enabling craft breweries to explore new markets and increase their global presence.

USA Beer Craft Future Market Outlook

The USA Beer Craft Market is expected to grow at a remarkable rate during the period of 2023-2028, driven by growth of non-alcoholic beers, expansion of ecommerce & direct sales & emergence of innovative flavors.

Future Trends

Growth of Non-Alcoholic Craft Beers: With an increasing number of consumers seeking healthier beverage options, breweries will invest in developing and marketing non-alcoholic variants. By 2028, it is estimated that the non-alcoholic craft beer segment will account for a significant portion of the market.

Expansion of E-Commerce and Direct-to-Consumer Sales: The craft beer market will witness a significant shift towards e-commerce and direct-to-consumer sales. By 2028, it is projected that online sales will constitute a substantial share of total craft beer sales, supported by technological advancements and changing consumer buying behaviors.

Rise of Innovative Flavors and Experimental Brews: The craft beer market will see a surge in innovative flavors and experimental brews over the next five years. Breweries will continue to push the boundaries of traditional beer styles, incorporating unique ingredients and brewing techniques to create novel products.
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