America’s craft beer industry continued to move forward in 2018, setting new, modern- era records for percentage of market share and number of breweries in operation, according to newly released Brewers Association data.
As of December 31, 2018, craft breweries produced 25.9 million barrels of beer, a figure that represents a four percent increase over 2017. By volume, the beer brewed by craft breweries now accounts for 13.2 percent of all the beer brewed in the United States. Measured by retail dollars, the figures are even more impressive, with craft beer flexing its economic muscle to the tune of $27.6 billion, or 24.1 percent market share and seven percent growth compared to 2017. All of this growth occurred while the beer market overall witnessed a decline of one percent in 2018.
Brewers Association Chief Economist Bart Watson points to the improvements as a continued sign of the public’s preference for small, independent breweries.
“Craft maintained a fairly stable growth rate in 2018 and continued to gain share in the beer market,” said Watson. “Small and independent brewers continue to serve as job creators, strong economic contributors, and community beacons.”
The number of craft breweries in operation at the end of 2018 was an impressive 7,346, a gain of 856 compared to the 6,490 craft breweries at the end of 2017. There were 219 craft beer closures for the year, but a net gain of 856, or 13.1 percent compared to last year, is a sure sign that the public’s thirst for craft beer has yet to be quenched. And there is still room for more growth, even though the competitive marketplace requires a distinctly different business approach compared to the recent past.
“The beer landscape is facing new realities with category competition, societal shifts, and other variables in play. There are still pockets of opportunity both in terms of geography and business model, but brewers need to be vigilant about quality, differentiation, and customer service,” said Watson.
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