The Future of Craft Beer: Insights and Predictions for 2024
As we approach the end of the year and the beginning of 2024, it’s time to take a closer look at the craft beer industry. In collaboration with Kevin York Communications (KYC), we’ve reached out to some of our craft beer clients to gather insights and predictions for the upcoming year. The industry’s current state and the anticipated trends for 2024 are a topic of great interest, considering the challenges and transformations the craft beer landscape has been undergoing. Let’s delve into the fascinating insights provided by our esteemed craft beer clients.
Rob Lutz – StormBreaker Brewing (Portland, Oregon)
Festivals and Industry Events
The post-COVID world still presents challenges for festivals and industry events. Rob Lutz emphasizes the necessity for breweries and event organizers to innovate and offer compelling experiences to draw attendees. With the economic uncertainties and competition for people’s time, the focus is on creating events that are both financially and experientially “worth it.” An example is StormBreaker’s Brewstillery Fest, which curates a unique experience by pairing a local distiller with a local brewer to create the perfect beer and spirit pairing. This approach goes beyond the traditional beer festival offerings and sets a standard for creating an engaging and valuable experience for attendees.
Beer Styles
Rob predicts the exploration of new hop products, particularly hop extracts and oils, to not only enhance the aromatics and flavors of IPAs but also to support increased yields and profits. The rising costs of ingredients demand creative strategies to maximize returns without substantially raising prices. Additionally, he anticipates the continued expansion of pilsner styles, with a growing interest in creative and experimental variations.
Aaron Reames – Bent Water Brewing Co. (Lynn, Massachusetts)
The Changing Landscape of Craft Beer Distributors
Aaron highlights the evolution of craft beer distributors, foreseeing the decline of distributors exclusively focused on craft beer. He emphasizes the importance of diversified portfolios managed by large, sophisticated teams to drive broad retail success, offsetting the higher execution risk associated with small teams and the limitations of a craft beer-only portfolio.
On-premise Sales and Market Trends
Aaron anticipates that on-premise same store sales will continue to lag below pre-pandemic levels. Factors such as tightening interest rates, reduced stimulus checks, and the end of debt relief programs contribute to diminished spending capacity. Moreover, high competition and margin compression are expected to drive innovation, leading to the adoption of new technologies and business approaches to reduce customer acquisition costs and stimulate demand.
Brady Barlow – West Sixth Brewing (Lexington, Kentucky)
The Craft Beer Distribution Landscape
Brady provides insights on the distribution landscape, projecting a potentially modest 3 percent upside in craft beer distribution. He expresses concerns about chain responses to market trends and emphasizes the significance of maximizing distribution through revitalized or new relationships to drive growth in 2024.
Events, Taprooms, and Owned Premise Landscape
Brady observes a continued upside in events and festivals, particularly for breweries that offer exceptional experiences. He underscores the importance of quality products and staff, as well as organizational excellence, as substantial barriers to entry for other breweries. Additionally, Brady predicts that taprooms will need to innovate extensively to retain consumer interest, particularly with the migration back to traditional bars, making events and increased community engagement crucial. Regarding taproom location growth, there is a reduced urgency caused by lower taproom performance, necessitating closer examination of investments in new locations.
Beer Styles
Brady acknowledges the ongoing trend of breweries venturing into lagers but anticipates a softening in the new year. He emphasizes the re-focus on hop profiles and the potential for further expansion in this area as the path forward for West Sixth Brewing.
With these insightful predictions and industry insights, the future of craft beer in 2024 appears intriguing and promising, marked by innovation, adaptation, and a fervent commitment to enhancing the craft beer experience. As we look ahead, these perspectives provide valuable guidance for navigating the evolving landscape of craft beer in the coming year
This article on 2024 trends in the craft beer market and market predictions was an insightful and enjoyable read! As a brewing industry enthusiast, I truly appreciated the valuable insights shared by the top craft brewers.