The Growth of Craft Beer Industry
The craft beer industry is still growing in popularity and revenue. Total craft beer sales rose 8 percent in 2021. Independent brewers’ share of the U.S. beer market by volume rose to 13.1 percent, up from 12.2 percent the prior year. The craft beer market is projected to grow at a Compound Annual Growth Rate of 17.1 percent for 2021-2026.
The percentage of people drinking craft beer has grown steadily year-over-year. California led the rise of craft brewing in the U.S.
Challenges and Slowdown
Growth has slowed recently. In 2020, the industry shrank by 10 percent due to the pandemic’s impact. With no growth now forecast for 2022, the percentage of craft beer market may have peaked at 13 percent by volume, though it represents 25 percent by dollars.
A 2020 survey found 60 percent of craft brewers could only survive three months under then-current social distancing practices. Beer consumption has lost market share to wine, spirits, and alcopops in recent decades. Yet craft beer has thrived, accounting for 13 percent of total beer output.
Future Opportunities
The U.S. craft beer market remains dynamic, with opportunities for independent brewers. The demand for unique beers also presents growth potential for new craft brewery market entrants. In 2021, there were over 4,600 breweries operating in the U.S., an increase of 917 from 2020, with the number expected to surpass 5,000 next year.