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Craft Beer Production in the US - Industry Market Research Report

Craft Beer Production in the US - Industry Market Research Report

  • January 2019
  • 41 pages
  • ID: 5103532
  • Format: PDF
  • By Ibisworld

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Drink up: Continual expansion and consolidation will enable greater profit margins for brewers

Abstract

Craft Beer Production
Over past five years, the Craft Beer Production industry transformed into one of the fastest-growing and most popular alcoholic beverage segments in the United States. The industry has experienced significant revenue growth over the five years to 2018. As consumers increasingly demand a greater variety of beers, including pale ales, lagers, seasonal beers, wheat beers, stouts and saisons, craft brewers have captured a significant portion of drinkers that had traditionally purchased light and premium-brand beers. Since many of the industry’s craft brewers are microbrewers, local brewpubs and regional producers, consumers have gravitated toward the industry’s products for the attention to detail, range of beer styles, quality ingredients, high degree of expertise and overall freshness that craft brewers offer. Although both craft brewers and their competitors have speculated that the rapid revenue growth among industry brewers is poised to plateau due to market saturation, consumer demand for craft beer remains robust, although profit margins have declined. Still, over the five years to 2023, IBISWorld projects the industry to grow.

This industry includes microbreweries and brewpubs that produce beer for resale or consumption on premises. A microbrewery produces a limited amount of beer, typically no more than 6.0 million barrels (189,000,000 US gallons) of beer per year. A brewpub brews and sells beer on the premises and may prepare and serve food to dining patrons. A brewpub may also be considered a microbrewery if it engages in a significant amount of beer distribution on a regional level.

This report covers the scope, size, disposition and growth of the industry including the key sensitivities and success factors. Also included are five year industry forecasts, growth rates and an analysis of the industry key players and their market shares.

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