Craft beer is a popular drink in the United States, with over 13% of the beer consumed in the country being independently-owned craft beer. The craft beer market in the US is growing, with nearly half of all craft beer drinkers increasing their consumption in the past two years. This growth is driven by younger drinkers, with those under 30 leading the increase in consumption. The typical craft beer drinker is a 35-44-year-old male with an income of $75,000-$99,000, although younger people are more likely to consider themselves craft beer drinkers.
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Craft beer consumption by age and gender
In Australia, the gender distribution of craft beer drinkers has remained relatively unchanged, with 82% of craft beer drinkers being male in 2022.
It is worth noting that the definition of a craft drinker varies and can include those who drink craft beer a few times a year, monthly, or weekly. Additionally, local and state demographics can differ significantly from national averages.
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Craft beer's market share
Craft beer has been gaining a strong foothold in the market, with a rising number of independent microbreweries offering numerous products. In 2022, craft beer accounted for nearly a quarter of the total US retail beer market, with a 24.7% share of the $117 billion market. This was an increase from 2021, when it had a 26.8% share, the largest in its history.
The growth in the craft beer market is associated with the rising consumer desire for variety, higher disposable income, flavour, and beer quality. The demand for low-alcoholic beverages has also been rising, with health-conscious consumers driving the market. Sales of no-alcohol and low-alcohol beers have increased due to this demand and a better selection of new varieties with superior taste.
In 2021, the number of craft breweries in the US increased to 9,118, up from 8,391 in 2019. The increase in craft breweries has been most prominent in states such as California, which had 957 establishments in 2022, Pennsylvania, and New York. Each of these states had over 500 craft breweries in 2022.
The major beer producers in the US still dominate the industry's sales, but small, independent craft breweries have increasingly climbed up the list of the top breweries in terms of volume of beer produced for sale. In 2017, 40 out of the 50 top breweries in the US were craft breweries.
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Craft beer's popularity
Craft beer has become increasingly popular in recent years, with the craft beer market continuing to grow. In the US, over 13% of the beer consumed is independently-owned craft beer. This figure has been steadily increasing by about one to two percentage points per year. A survey by the Brewers Association found that 43% of respondents drink craft beer at least occasionally, with over half of those under 44 considering themselves craft beer drinkers.
The popularity of craft beer can be attributed to several factors. Firstly, there is a growing consumer preference for craft beer's unique taste and flavour variety. Craft beer is often perceived as a higher-quality product compared to commercial beer, with more genuine and natural ingredients. This perception of higher quality is further reinforced by the fact that craft beer is often locally brewed and sold directly to consumers on-site, allowing brewers to build brand recognition and equity with their customers.
Another factor contributing to the popularity of craft beer is the advent of smaller breweries, which is largely driven by consumer demand for local and specialty products. This trend towards smaller, independent breweries is not unique to the beer industry and can also be observed in the coffee, spirits, and wine industries.
While craft beer has been gaining popularity, there are some signs that its growth may be slowing. Beer consumption in the US is on a downward trend, with consumers shifting their preferences towards spirits and non-alcoholic beverages. Additionally, craft beer, as a higher-priced beverage, may be impacted by consumers tightening their spending due to rising inflation.
To sustain the growth of the craft beer market, brewers may need to target new consumer segments, such as younger drinkers and those attracted by different flavours. Additionally, brewers can focus on differentiating their products by emphasising sustainability, local ingredients, and unique flavours.
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Craft beer's sales
Craft beer sales in the United States have been growing, with over 13% of the beer consumed in the country being independently-owned craft beer. This figure has been increasing by about one to two percentage points annually. The total population of craft drinkers has also been growing, with around 40% of the 21+ population now consuming craft beer at least several times a year. This equates to approximately 96.8 million people.
In terms of demographics, craft beer drinkers are predominantly male, with 56% of men and 31% of women identifying as craft beer drinkers. The gender gap has narrowed slightly in recent years, with a shift of about 2% towards female drinkers between 2015 and 2018.
Craft beer sales are driven by younger consumers, with over half of those under 44 years old considering themselves craft beer drinkers. The most common weekly craft beer drinker is a 35- to 44-year-old male with an income between $75,000 and $99,000.
The craft beer market in the United States is mature, and its growth has been declining. Beer, in general, is falling in popularity, with consumers turning to spirits, new varieties of flavoured alcoholic beverages, and non-alcoholic options. Craft beer, as a higher-priced beverage, has also been impacted by consumers tightening their budgets due to rising inflation.
Despite the overall decline in the beer market, the craft beer segment continues to grow, particularly among younger consumers. California leads the country in craft brewery numbers, with over 900 in 2022. The total number of breweries in the United States has experienced significant growth, increasing from 880 in 2012 to 2,802 in 2016. This growth is largely driven by small, craft-brewery establishments with fewer than 50 employees.
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Craft beer's production
Craft beer production has been on a rollercoaster ride in recent years. Between 2012 and 2016, the number of breweries in the United States skyrocketed, with the craft brewery business experiencing a boom. In this five-year period, the number of breweries more than tripled, with the most growth occurring in small craft brewery establishments with fewer than 50 employees. This growth continued, and by 2021, craft beer volume amounted to about 24.8 million barrels.
However, 2022 saw a reversal of this trend, with the industry experiencing a decline in production. This decline can be attributed to several factors. Firstly, beer as a whole is falling in popularity in the United States, with consumers shifting their preferences towards spirits and new varieties of flavoured alcoholic beverages. The younger generation, in particular, is increasingly interested in non-alcoholic beverages. Additionally, craft beer, being a higher-priced beverage, has suffered due to consumers tightening their budgets in the face of rising inflation.
Furthermore, the growth in the number of facilities has primarily been in tap rooms, smaller venues defined as breweries that sell 25% or more of their beer on-site with no significant food service. This shift towards smaller establishments may impact production capacity and output.
Despite these challenges, the craft beer market continues to show potential for growth, particularly among younger consumers. Nearly half of all craft beer drinkers have increased their consumption in the past two years, with the under-30s leading this increase. This trend suggests that the craft beer market is likely to continue expanding, provided that producers understand the unique characteristics that motivate consumers' beer choices.
To appeal to younger consumers, craft beer producers may need to focus on attractive labelling and packaging, as well as offering new and innovative products. Additionally, understanding the importance of socialization for craft beer drinkers can help producers develop effective marketing strategies. By portraying people socializing in an informal and relaxing environment while enjoying craft beer, producers can encourage consumers to associate the product with leisure and camaraderie.
Furthermore, taste remains a key factor in consumers' choices, so producers should continue to prioritize product quality and uniqueness. Organizing tasting initiatives can help consumers experience the product and acquire an appreciation for its characteristics.
By adapting to the changing preferences and consumption habits of their target audience, craft beer producers can navigate the challenges posed by shifting demographics and market trends.
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