Craft Brewers Continue Strong Growth

American craft beer production volume increased 8% during the first half of 2016.

July 27, 2016

BOULDER, Colo. – Craft brewers are still growing, according to new mid-year data released this week by the Brewers Association.

“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, in a video released by the 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% growth for craft. Production growth of small and independent craft brewers continues to be one of the main bright spots for domestic beer in the U.S. Even in a more competitive market, for the vast majority of small and independent brewers, opportunities still exist.” (View the full video here.)

As of June 30, a record high of 4,656 breweries were operating in the U.S., an increase of 917 breweries over the same time period of the previous year. Additionally, there were approximately 2,200 breweries in planning. Craft brewers currently employ an estimated 121,843 full-time and part-time workers in a variety of roles including many manufacturing jobs, all of which contribute significantly to the U.S. economy.

“The opening rate compared to closing rate for breweries remains incredibly strong, with an historic number of breweries operating in the United States,” Watson added. “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.”

An American craft brewer is defined as small, independent or traditional:

  • Small: Annual production of 6 million barrels of beer or less (approximately 3% of U.S. annual sales). Beer production is attributed to the rules of alternating proprietorships.
  • Independent: Less than 25% of the craft brewery is owned or controlled (or equivalent economic interest) by an alcoholic beverage industry member that is not itself a craft brewer.
  • Traditional: A brewer that has a majority of its total beverage alcohol volume in beers whose flavor derives from traditional or innovative brewing ingredients and their fermentation. Flavored malt beverages (FMBs) are not considered beers.

The Brewers Association is the not-for-profit trade association dedicated to small and independent American brewers, their beers and the community of brewing enthusiasts.

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