Despite a record number of operational breweries, production rates in the US craft-beer industry saw a decline in 2023, according to preliminary figures from the national Brewers Association (BA).
Small and independent brewers experienced a 1% drop in annual beer production compared to 2022, with a total output of 23.4 million barrels.
However, craft beer’s overall annual market share slightly increased by 0.2% from the previous year, reaching 13.3% in 2023.
According to the BA, the growth stemmed from craft declines being less pronounced compared to the overall losses in beer volume.
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Craft beer’s production decline comes as the country’s overall beer market saw a 5.1% decrease in volumes last year, attributed to factors such as pricing and slightly stronger growth in onsite sales compared to distribution, according to industry analysis.
Alongside production data, the BA also unveiled its roster of the leading craft brewers in the US, determined by beer sales volumes.
Boston Beer Co., D. G. Yuengling & Son, Duvel Moortgat, Sierra Nevada Company, and Gambrinus were among the top five craft players. Prominent breweries included Pabst Brewing Company, Heineken, Molson Coors, Constellation, and Anheuser-Busch Inc.
Even though craft production decreased in the US, the number of operating breweries in the craft sector reached an all-time high, rising by 1.37% compared to 2022, totaling 9,683.
Among these breweries, there were 3,900 taproom breweries, 3,467 brewpubs, 2,071 microbreweries, and 245 regional craft breweries.
However, closure rates for craft breweries increased again in 2023, rising from 3% to approximately 4%.
In 2023, the US experienced 495 brewery openings, marking a 9.8% decrease compared to 2022, while closures surged by 31%, with 418 breweries shutting their doors.
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Reflecting on the results, Bart Watson, Vice President of Strategy and Chief Economist of the Brewers Association, commented, “2023 proved to be yet another competitive and challenging year for small and independent brewers.”
“However, despite the slowdown in growth, small brewers have demonstrated remarkable resilience, evident in the rise in the number of breweries, relatively low closure rates, and advancements in onsite sales and job opportunities.”
He further remarked, “As always, the beverage alcohol market and consumer demand continue to undergo evolution.”
“Accordingly, many brewers are updating their operations to align with these changes, refining their business models, go-to-market strategies, and brand strategies to adapt to evolving consumer preferences.”