Drink up: Shifts in consumer tastes have enabled the industry to grow substantially

Over past five years, the Craft Beer Production industry transformed into one of the fastest growing and most popular alcoholic beverage segments in the United States. The industry has experienced significant revenue growth over the five years to 2017. As consumers increasingly demand a greater variety of beers, including pale ales, lagers, seasonal beers, wheat beers, stouts and saisons, craft brewers have captured a significant portion of drinkers who had traditionally purchased light and premium brand beers...purchase to read more.

Industry Statistics & Market Size
Annual Growth 12-17
Forecast Growth 17-22

Industry Threats & Opportunities

  • Overwhelming consumer support for craft beer has led to rapid industry growth
  • Major brewers achieved a significant competitive advantage through consolidation
  • The Craft Beer Production industry is expected to show continued signs of expansion
  • Industry Report - Industry Investment Chapter

    Breweries require substantial amounts of capital investment in the form of boil kettles, mash tuns, fermenters, bottling systems, sanitizing equipment and other parts, although the size of these systems vary depending on the production goals of the brewer. On average, companies spend $0.75 on capital for every dollar spent on wages. Brewing equipment is purchased new or used at the inception of the business, although these investments often require continuous maintenance and repair or are simply replaced with larger systems later on. The majority of the fermentation process is mechanized, but human labor is essential for mashing, bottling and various quality control tasks...purchase to read more.

    Additional Insights for the Craft Beer Production Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Craft Beer Production Industry are

  • Establishment of brand names
  • Control of distribution networks
  • Marketing of products
  • IBISWorld analysts also discuss how external factors such as Demand from beer wholesaling and Per capita disposable income in the Craft Beer Production industry impact industry performance..

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    What's in this report

    What is the Craft Beer Production Industry?

    This industry includes microbreweries and brewpubs that produce beer for resale or consumption on premises. A microbrewery produces a limited amount of beer, typically no more than 6.0 million barrels (189,000,000 US gallons) of beer per year. A brewpub brews and sells beer on the premises and may prepare and serve food to dining patrons. A brewpub may also be considered a microbrewery if it engages in a significant amount of beer distribution on a regional level.

    Industry Products
  • IPA
  • Seasonal
  • Pale ale
  • Amber ale
  • Lager
  • Fruit beer
  • Industry Activities
  • Brewing and selling craft styles of ale and lager
  • Brewing and selling seasonal craft beers
  • Distributing craft beers to localers
  • Managing full-service brewpub establishments
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Demand from beer wholesaling
  • Per capita disposable income
  • Per capita expenditure on alcohol
  • Price of coarse grains
  • Excise tax on beer
  • Trade-weighted index

  • Current Performance
  • Beer’s new frontier
  • The craft beer craze
  • Chart: Revenue Growth

  • Industry Outlook
  • Craft brewers, consolidation and copycats
  • International appeal
  • Table: Craft Beer Production Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Craft Beer Production Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Beer Wholesaling
  • Consumers

  • Key Selling Industries
  • Aluminum Manufacturing
  • Cardboard Box & Container Manufacturing
  • Corn, Wheat & Soybean Wholesaling
  • Glass Product Manufacturing
  • Printing
  • Sugar Processing
  • Wheat, Barley & Sorghum Farming
  • Wood Pallets & Skids Production

  • Products & Services
  • Other
  • IPA
  • Seasonal
  • Lager
  • Pale ale
  • Amber ale
  • Fruit beer
  • Chart: Craft Beer Production Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Consumers aged 21 to 34
  • Consumers aged 35 to 44
  • Consumers aged 55 and older
  • Consumers aged 45 to 54
  • Chart: Major Market Segmentation for the Craft Beer Production Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Profit
  • Purchases
  • Wages
  • Depreciation, rent and utilities
  • Other costs
  • Chart: Cost Structure Benchmarking – Sector vs Craft Beer Production

  • Basis of Competition
  • External competition

  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Craft Beer Production Industry

  • Industry Globalization
    D.G. Yuengling & Son Inc., Boston Beer Company,
  • Table: D.G. Yuengling & Son Inc. - financial performance
  • Table: Boston Beer Company - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Craft Beer Production Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Craft Beer Production Industry
  • Industry Revenue (2008-2022)
  • Industry Gross Product (2008-2022)
  • Establishments (2008-2022)
  • Businesses (2008-2022)
  • Employment (2008-2022)
  • Exports (2008-2022)
  • Imports (2008-2022)
  • Wages (2008-2022)
  • Price of coarse grains (2008-2022)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Craft Beer
  • Beer made by small independent brewers with annual production of 6 million barrels of beer or less.
  • Dry Counties
  • Local jurisdictions in the US which prohibit, in some capacity, the sale of alcoholic beverages.
  • Growler
  • Glass or ceramic jugs filled by brewers with fresh beer and sold directly to consumers for off-premises consumption. Growlers typically range from 32 to 64 ounces.
  • Lager
  • A type of beer that is fermented and conditioned at low temperatures. Pale lager is the most widely-consumed and commercially available style of beer in the world
  • Pale Ale
  • A type of beer made through a warm fermentation process using a high proportion of pale malt, which gives it a lighter color.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s industry research report on Craft Beer Production can be used to help you understand the industry’s market size, growth potential and major companies. Five-year forecasts provide insight into the industry’s prospects, so you can make decisions with confidence. This information is perfectly suited to informing your business plans, pitch books, benchmarking and SWOT analysis.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Craft Beer Production:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Craft Beer Production market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Craft Beer Production, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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