Has Craft Beer Peaked?

By Aaron Smith

The craft beer industry has brought creative flavors and artisanal techniques to beer enthusiasts worldwide, and it has grown significantly in popularity over the past decade. But recently, a looming question has emerged: has craft beer peaked?

Boom of Craft Beer

Before diving into the main question, let’s take a minute to talk about the growth of craft beer. Twenty years ago, your local watering hole might have had a handful of taps – perhaps a few domestic brews, a Guiness, maybe a Heineken. But today, it’s not uncommon to find bars with 20 or 30 unique, small batch brews on tap. Craft beer has gone from a niche industry to a mainstream sensation.

Statistics

The numbers tell an impressive story. As of 2020, the Brewers Association reported that there are more than 8,000 craft breweries operating in the United States, loading shelves and taps with an unprecedented variety of India Pale Ales, stouts, lagers, and countless other styles.

Surges and Slowdowns

Despite consistent growth for many years, recent trends suggest some slowing in the craft beer boom. The number of new craft breweries opening each year has begun to slow, and some established breweries have even shuttered their doors. The craft beer market has also started to show signs of saturation.

The Saturation Point

With the number of breweries operating today, competition is fiercer than ever. And, like any industry, there’s only so much room at the top. Even the most ardent craft beer drinker can only try so many new brews, and this has led some commentators to suggest we are nearing, or may have already reached, a saturation point.

The Big Players

The slowdown doesn’t mean that craft beer is losing favor entirely. Instead, the market might be normalizing into a more predictable pattern, like that of other established sectors. One result of this is the larger breweries’ move to buy smaller craft breweries to expand their selection. This change in the market landscape is an example of how the industry might continue evolving.

Acquisitions and Mergers

Larger companies like AB InBev (the maker of Budweiser) and Molson Coors have been scooping up craft breweries in recent years. In doing so, they’re able to bring craft-style beers to a larger audience, but this trend is also squeezing some smaller players out of the market.

Bottom Line

So, has craft beer peaked? In terms of sheer growth, it’s certainly possible. The explosive expansion that typified this industry over the last decade or two is slowing. However, total closure or failure is far from imminent. The market appears to be transitioning from its pioneering phase into a more stable, mature state. Much like wine, rare scotches, and premium cigars, the market for fine beers is still very much alive.

Looking Forward

Craft beer’s future may look different, but it’s far from over. Market saturation and large brewery acquisitions might indeed mean fewer small start-ups in the industry. However, beer enthusiasts worldwide can rest easy knowing that craft beer is still brewing. What lies ahead is a fascinating fusion of tradition, innovation, and business evolution that will ensure beer remains an exciting beverage to explore.