Consumer support for craft beer and legislative changes for interstate beer distribution have transformed this industry.
New York, NY (PRWEB) September 12, 2014
The past five years have transformed the Craft Beer Production industry into one of the most popular and fastest growing alcoholic beverage segments in the United States. The industry has experienced annualized revenue growth of 19.0% in the five years to 2014, reaching an estimated $4.2 billion in 2014. As consumers increasingly demand a greater variety of beers, including pale ales, lagers, seasonal beers, wheat beers, stouts and porters, craft brewers have captured a significant portion of drinkers who had traditionally purchased traditional light and premium brand beers. “Since many of the industry's craft brewers are microbrewers, local brewpubs and regional producers, consumers have gravitated toward the industry's products for the attention to detail, range of beer styles, quality ingredients, high degree of expertise and overall freshness,” according to IBISWorld Industry Analyst Nick Petrillo. IBISWorld projects industry revenue to grow an additional 16.8% over 2014, in response to continual increases in demand for craft beer styles.
Although the industry mostly consists of many small-sized players, there has been increasing consolidation and expansion activity among some of the industry's largest brewers. Brewers such as Magic Hat and Pyramid, once significant independent brewers, have been acquired by holding company North American Breweries. “Other companies, such as Sierra Nevada and Lagunitas, have constructed massive secondary brewing locations to facilitate beer distribution across a greater region of the US,” says Petrillo. In response to the increasing popularity of craft breweries, international beer manufacturing companies MillerCoors and Anheuser-Busch InBev have aggressively promoted their respective Blue Moon and Shock Top wheat beer competitor brands in an attempt to capture growing craft beer sales.
Although craft brewers and their competitors alike have speculated that the rapid revenue growth among industry brewers is poised to decline eventually, consumer demand for craft beer has not demonstrated any significant signs of decline. Overwhelming consumer support for craft beer, alongside various legislative changes for interstate beer distribution, has transformed this industry from the small collection of brewpubs and microbreweries it was two decades ago to an industry that represents the fastest-growing segment within the US alcoholic beverages market.
For more information, visit IBISWorld’s Craft Beer Production in the US industry report page.
Follow IBISWorld on Twitter: https://twitter.com/#!/IBISWorld
Friend IBISWorld on Facebook: http://www.facebook.com/pages/IBISWorld/121347533189
IBISWorld industry Report Key Topics
This industry includes microbreweries and brewpubs that produce beer for resale or consumption on premises. A microbrewery produces a limited amount of beer, typically up to 6.0 million barrels (186,000,000 US gallons) of beer per year. A brewpub brews and sells beer on the premises as well as prepares and serves 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.
Key External Drivers
Industry Life Cycle
Products & Markets
Products & Services
Globalization & Trade
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
About IBISWorld Inc.
Recognized as the nation’s most trusted independent source of industry and market research, IBISWorld offers a comprehensive database of unique information and analysis on every US industry. With an extensive online portfolio, valued for its depth and scope, the company equips clients with the insight necessary to make better business decisions. Headquartered in Los Angeles, IBISWorld serves a range of business, professional service and government organizations through more than 10 locations worldwide. For more information, visit http://www.ibisworld.com or call 1-800-330-3772.