US Craft Beer Production Decline in 2023
Craft beer production faced a slight decline in 2023, with a 1% drop compared to 2022. While the US overall beer market experienced a larger 5.1% decrease, the craft sector showed its resilience. Despite the dip, the craft beer market share inched up to 13.3% in 2023, driven by smaller declines than the broader beer industry.
The national Brewers Association’s Findings
The national Brewers Association (BA) reported that small and independent brewers in the US saw their production drop by 1% to 23.4 million barrels in 2023. Interestingly, this decline comes at a time when the number of operating breweries hit an all-time high, up 1.37% from 2022, totaling 9,683 breweries. These breweries include:
- 3,900 taproom breweries
- 3,467 brewpubs
- 2,071 microbreweries
- 245 regional craft breweries
Top Craft Beer Producers
The BA’s report also highlighted the top-producing craft brewers in the US. The leaders in craft beer production include:
- D. G. Yuengling & Son
- Boston Beer Co.
- Sierra Nevada Company
- Duvel Moortgat
- Gambrinus
Craft Brewery Openings and Closures
Despite the growth in the number of breweries, the industry saw an increase in closure rates. Craft-brewery closures rose from 3% to approximately 4% in 2023. The country witnessed 495 brewery openings, a 9.8% dip from the previous year, while 418 breweries shut their doors, marking a 31% increase in closures.
Challenges and Resilience in the Craft Beer Industry
Bart Watson, vice president of strategy and chief economist of the Brewers Association, noted that 2023 was a competitive and challenging year for small and independent brewers. Despite the slowdown in growth, small brewers have proved resilient, with increases in the number of breweries, relatively low closure rates, and gains in onsite sales and jobs.
Adapting to Market Changes
As consumer demand and the beverage alcohol market continue to evolve, many brewers are updating their business models, go-to-market strategies, and brand strategies to keep pace. This adaptability is crucial for staying competitive in a challenging market.
Craft Beer Production by Numbers
Year | Total Craft Beer Production (Million Barrels) | Change in Production (%) |
---|---|---|
2022 | 23.6 | – |
2023 | 23.4 | -1% |
The data above highlights the slight but significant decline in US craft beer production. This trend reflects broader industry challenges but also underscores the strength and resilience of the craft beer sector.
Conclusion
The US craft beer industry continues to navigate a complex landscape of challenges and opportunities. While production decline poses a hurdle, the increase in operating breweries and their adaptability in business strategies signify a robust future for craft beer enthusiasts. Keeping a focus on quality and innovation will be key for small and independent brewers as they move forward.