America’s small, independent craft breweries continue to see overall growth as an industry whole, according to the non- profit Brewers Association. Production volume for the six months ending June 30, 2018 witnessed a five percent increase overall and Brewers Association chief economist Bart Watson feels this rate is a sign of a steady, stabilized industry.
“While more mature, the market continues to show demand for small and independent craft brewers,” said Watson. “There are certainly industry headwinds, but this stabilized growth rate is reflective of the market realities that exist for brewers today.”
The total number of breweries in operation as of June 30, 2018 was 6,655, the greatest number in American beer industry history. Last year at this time, the total breweries in operation were 5,562. This represents a year- over- year increase of 19.7 percent. In addition to the 6,655 breweries in existence, another 2,500 to 3,000 are currently in planning stages, according to official statistics from the Alcohol and Tobacco Tax and Trade Bureau.
Brewery closures are on the rise as well, but this is expected, as almost any industry with rapid growth will eventually witness shutdowns of its weaker members. But the new openings continue to exceed closures by a large margin, leading to continued overall growth.
“The data demonstrate that 2018 is on pace to have the highest number of brewery openings and closings to date. However, even as breweries close, openings continue to far outpace the number that shutter,” said Watson. “New players looking to enter the space should be aware of the constructs of the current landscape, work to differentiate themselves, and will need to make quality beer to succeed.”
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