Breweries
Industry Profile Report
Dive Deep into the industry with a 25+ page industry report (pdf format) including the following chapters
Industry Overview Current Conditions, Industry Structure, How Firms Operate, Industry Trends, Credit Underwriting & Risks, and Industry Forecast.
Call Preparation Call Prep Questions, Industry Terms, and Weblinks.
Financial Insights Working Capital, Capital Financing, Business Valuation, and Financial Benchmarks.
Industry Profile Excerpts
Industry Overview
The 9,700 production breweries in the US include about 155 national or international breweries producing over 6 million barrels per year. Around 260 are regional craft breweries producing between 15,000 and 6 million barrels annually. More than 2,000 microbreweries produce less than 15,000 barrels per year. An additional 3,400 brewpub restaurants and 3,800 taprooms also produce beer on-site.
Competition Among Breweries
The beer industry is highly competitive, with a proliferation of craft and large/non-craft breweries fueling competition.
Industry Highly Regulated
The beer industry is highly regulated at both the state and federal levels.
Industry size & Structure
The average brewery employs 7 workers and generates over $3 million in annual sales.
- The US brewing industry includes approximately 9,700 production breweries. About 155 are national or international breweries producing over 6 million barrels per year. Around 260 are regional craft breweries producing between 15,000 and 6 million barrels annually. More than 2,000 microbreweries produce less than 15,000 barrels per year. An additional 3,400 brewpub restaurants and 3,800 taprooms also produce beer on-site.
- The typical global brewery brews 100 million barrels annually, with revenue per barrel of approximately $125 (a barrel is 31 gallons).
- The top three global breweries – Belgium-based AB InBev, Netherlands-based Heineken, and China Resources Snow Breweries – commanded nearly half (47.5%) of the global beer market in 2022. Imports account for about 23% of the US beer market.
- Regional craft breweries include Boston Beer Company, Sierra Nevada, and New Belgium. These breweries typically distribute nationally and often internationally. The 260-or-so regional breweries produce around 15 million barrels of beer annually.
- The nation's 2,035 microbreweries produced 17.5% of craft beer industry production volume in 2022.
- About 3,219 brewpubs produce 1.4 million barrels of beer each year.
- Per capita, Americans consume about 28 gallons of beer annually. North Dakota, New Hampshire and Montana lead the nation in beer consumption with more than 40 gallons per capita. New York, New Jersey, Connecticut and Utah consume the least with about half that amount per capita.
Industry Forecast
Breweries Industry Growth
Recent Developments
Dec 13, 2024 - A Not-So-Great Year for Beer
- Craft beer underperformed in 2024 and performance deteriorated as the year progressed, according to the Brewers Association’s yearend recap. Per the association’s midyear survey, craft beer saw an estimated decline of 2% in production, compared to a 1% decline for the full year 2023. In the second half of 2024, third quarter scan data suggested weaker performance than the first half of the year, suggesting weaker performance for the full year than was indicated in the midyear estimate. “Craft has been going through a painful period of rationalization as demand growth has slowed and retailers and distributors look to simplify their offerings or add options for flavor and variety outside of the craft category,” said Bart Watson, the BA’s VP of strategy and chief economist. Also, closings have outpaced openings so far in 2024, with the BA tracking 335 new brewery openings and 399 closings.
- According to the Brewers Association’s look ahead to 2025, the beer industry appears poised for another challenging year. Brewers are likely to face ongoing uncertainty, potential tariffs and rising costs, retailers and distributors looking to simplify offerings, and potential new dietary guidelines for beverage alcohol in 2025, the BA reports. Market pressures will likely drive continued consolidation and alliances to reduce costs and utilize excess capacity. “Brewers are experiencing critical challenges at the crossroads of a high-cost environment paired with slowing growth,” said the BA’s Bart Watson. To grow in 2025, brewers will need to differentiate their brands amid a crowded field of competitors. Sales for the US breweries industry are forecast to grow at a 2.66% compounded annual rate from 2024 to 2028, slower than the growth of the overall economy, according to the latest Interindustry Economic Research Fund forecast.
- With beer consumption in the US at its lowest level since the 1990s, breweries are looking for ways to grow and boost sales. An October report on the US beer industry from Research and Markets points to the rising demand for premium and new beer flavors, as well as a growing online sales, as future drivers of sales for the US brewing sector. According to the report, the US beer sector is forecast to grow by $28.3 billion between 2023-2028, “driven by demand for premium beers, online presence and innovative flavors” while “accelerating at a CAGR of 4.61%.” The latest data from a Beer Marketers’ Insight (BMI) report also identified growing demand for low-alcohol beer and an increase in partnerships and mergers and acquisitions among beer vendors as growth drivers in the beer market.
- The Producer Price Index for breweries, which measures prices before reaching consumers, rose 1.4% in September compared to a year ago after rising 2.4% in the previous September-versus-September annual comparison, according to the latest US Bureau of Labor Statistics data. The Consumer Price Index for beer at home, a measure of prices at the retail level, rose 4.7% year-over-year in September and 0.4% compared to August. September’s 5.7% increase in the CPI for beer away from home trailed total alcohol away from home (up 6.4%). Meanwhile, employment by breweries grew 3.5% YoY in September, according to the BLS.
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