Beverages

Is Craft-Beer Production Nearing Maturation?

Volume growth slows but new breweries still coming at record rate

BOULDER, Colo. -- As consumer interest in craft beer continues to grow, so does the amount of craft beer being produced.

American craft-beer production volume increased 8% during the first half of 2016, according to new midyear data released by the Brewers Association, the Boulder, Colo.-based not-for-profit trade association dedicated to small and independent American brewers.

“While the craft-brewing industry is entering a period of maturation, most markets are not near saturation,” said Bart Watson, chief economist of the Brewers Association. “As craft’s base gets larger, as with any industry, it becomes more difficult for it to grow at the same percentage rate. Yet there is still tremendous dynamism reflected in 8% percent growth for craft."

In 2015, craft beer production grew 12.2%, according to the association, up from 11% in 2014.

"Production growth of small and independent craft brewers continues to be one of the main bright spots for domestic beer in the U.S.," Watson said. "Even in a more competitive market, for the vast majority of small and independent brewers, opportunities still exist.”

As of June 30, a record-high 4,656 breweries were operating in the United States, an increase of 917 breweries over the same time period from the previous year. Also, there were about 2,200 breweries in planning stages.

“The opening rate compared to closing rate for breweries remains incredibly strong, with a historic number of breweries operating in the U.S.,” Watson said. “As long as there is growing consumer demand, beer lovers’ thirst will continue to advance the category of craft brewed beer from small and independent producers.”

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