BOULDER, Colo. – The Brewers Association (BA), the trade association representing small and independent American craft brewers, released 2016 data on U.S. craft brewing growth. With more than 5,300 breweries operating during the year, small and independent craft brewers represent a 12.3% market share by volume of the overall beer industry.

In 2016, craft brewers produced 24.6 million barrels, and saw a 6% rise in volume on a comparable base and a 10% increase in retail dollar value. Retail dollar value was estimated at $23.5 billion, representing a 21.9% market share. By adding 1.4 million barrels, craft brewer growth outpaced the 1.2 million barrels lost from the craft segment, based on purchases by large brewing companies. Microbreweries and brewpubs delivered 90% of the craft brewer growth.

“Small and independent brewers are operating in a new brewing reality still filled with opportunity, but within a much more competitive landscape,” said Bart Watson, chief economist, Brewers Association. “As the overall beer market remains static and the large global brewers lose volume, their strategy has been to focus on acquiring craft brewers. This has been a catalyst for slower growth for small and independent brewers and endangered consumer access to certain brands.

“Small and independent brewers were able to fill in the barrels lost to acquisitions and show steady growth but at a rate more reflective of today’s industry dynamics. The average brewer is getting smaller and growth is more diffused within the craft category, with producers at the tail helping to drive growth for the overall segment,” Watson said.

Additionally, in 2016 the number of operating breweries in the U.S. grew 16.6%, totaling 5,301 breweries, broken down as follows: 3,132 microbreweries, 1,916 brewpubs, 186 regional craft breweries and 67 large or otherwise non-craft brewers. Small and independent breweries account for 99% of the breweries in operation. Throughout the year, there were 826 new brewery openings and only 97 closings. Combined with already existing and established breweries and brewpubs, craft brewers provided nearly 129,000 jobs, an increase of almost 7,000 from the previous year.

For additional insights, see BA’s “Breaking Down the Craft Growth Numbers.”