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
Industry Forecast
Breweries Industry Growth
Source: Vertical IQ and Inforum

Recent Developments

May 13, 2024 - Price Hikes Ease Amid Declining Demand
  • The Producer Price Index for breweries, which measures prices before reaching consumers, rose 1.6% in March compared to a year ago after rising 4.4% in the previous annual comparison, according to the latest US Bureau of Labor Statistics data. Price hikes by brewers are easing amid declining sales and a decrease in consumer demand for craft beers and most big national brands. Meanwhile, employment by breweries, wineries, and distilleries was essentially unchanged in March year over year, according to the BLS.
  • The number of craft breweries in the US continued to rise in 2023 despite a tough year for the craft brewery industry, the Brewers Association reported in April. In 2023, the number of operating craft breweries reached a record 9,761, including 2,092 microbreweries, 3,502 brewpubs, 3,910 taproom breweries, and 257 regional craft breweries. There were 495 new brewery openings and 418 closings. Openings fell for a second straight year, reflecting a more mature market. The closing rate increased but remained relatively low, at about 4%. Collectively, small and independent brewers produced 23.4 million barrels of beer in 2023, a decline of 1% from 2022. However, craft’s overall beer market share by volume grew to 13.3% in 2023 from 13.1% in 2022, as craft’s declines were smaller than overall beer volume losses, per BA production data.
  • The Alcohol and Tobacco Tax and Trade Bureau (TTB) is considering major revisions to labeling regulations that would affect beer makers, The Brewers Association (BA) reports. Potential changes under consideration by the TTB include mandatory disclosure rules for alcohol content, major allergens, nutritional information, and ingredients. While the BA says it generally supports the disclosures under consideration, which, as in the case of the “big nine” allergens, convey information important to certain consumers, it expressed concern that labeling rules should not unfairly burden small brewers or suppress innovation and creativity and should include reasonable accommodations for small-batch products from producers of all sizes, according to a press release. In comments to the TTB, the BA also recommended that materials consumed or bio-transformed during production or added as processing aids should be excluded from labels if not found in the finished product.
  • Last year was a rough year for beer, with US shipments expected to reach their lowest level in 25 years, The Wall Street Journal reports. In the first nine months of 2023, beer shipments fell 5.3% and, by year’s end, were expected to hit their lowest level in a quarter-century, according to industry tracker Beer Marketer’s Insights. A cocktail of factors, including changing consumer tastes and the Bud-Light boycott, conspired to depress beer consumption. Younger adults consume less alcohol than older consumers, and when they drink, they prefer spirits to beer. Generation Z (born between 1997 and 2012) had the lowest alcohol consumption of any adult age group in the nation, with 58% of legal drinking-age respondents saying they had drunk alcohol in the past six months, a recent survey by MRI-Simmons found. Among those, 87% had consumed spirits, while 56% had consumed beer.
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