United States Craft Beer Market

United States Craft Beer Market Size:

The United States craft beer market size reached US$ 29.21 Billion in ​2023​. Looking forward, IMARC Group expects the market to reach US$ 41.94 Billion by ​2032​, exhibiting a growth rate (CAGR) of 3.6% during 2024-2032. The market is propelled by the rising consumer preference for distinctive and locally-produced beverages, rising popularity of craft beer festivals and events, increasing demand for premium and innovative beer flavors, shift toward sustainable and eco-friendly brewing practices, increasing disposable income level and changing lifestyle trends, and robust support from local communities and tourism.

United States Craft Beer Market Analysis:

• Major Market Drivers: Some of the major market drivers include rising consumer preference for distinctive and locally-produced beverages, increasing popularity of craft beer festivals and events, and growing demand for premium and one-of-a kind beer flavors.
• Key Market Trends: Rapid shift toward sustainable and eco-friendly brewing practices, rising disposable income levels, and robust support from local communities and tourism represent some of the key market trends.
• Competitive Landscape: Some of the major market players in the United States craft beer industry are extensively investing in sustainable brewing practices and eco-friendly packaging, rising collaborations with local farmers and suppliers for good-quality ingredients, and development of experiential marketing campaigns and events.
• Challenges and Opportunities: Some of the challenges include robust competition from craft and large-scale breweries, regulatory and compliance issues, and significantly changing raw material costs. Whereas, rapid growth into untapped markets, increasing demand for low-alcohol and non-alcoholic craft beers, and rapidly increasing interest in direct-to-consumer sales channels.

United States Craft Beer Market Trends:

Increasing Consumer Preference for Distinctive and Locally-Produced Beverages

One of the most significant factors driving the United States craft beer market is the increasing consumer preference for unique and locally-produced beverages. This trend is fueled by a growing desire among consumers to support local businesses and enjoy products with distinct and diverse flavors. Craft breweries often experiment with different ingredients and brewing techniques to create innovative and unique beer profiles, appealing to consumers looking for new and exciting taste experiences. The emphasis on quality and craftsmanship in the brewing process further enhances the appeal of craft beers over mass-produced alternatives. According to the BREWERS ASSOCIATION, in 2020 small and independent brewers collectively manufactured 23.1 million barrels of beer.

Rapid Expansion of Craft Breweries Across the Country

The expansion of craft breweries across the United States is another crucial factor driving the United States craft beer market growth. Over the past decade, the number of craft breweries has increased, providing consumers with a wider array of options and increasing the accessibility of craft beer. This growth is supported by a robust community of brewers who share knowledge, collaborate on projects, and drive innovation within the industry. The proliferation of brewpubs, microbreweries, and United Statesal craft breweries has not only increased the availability of craft beer but also fostered a sense of community and local pride.

Increasing Popularity of Craft Beer Festivals and Events

The growing popularity of craft beer festivals and events is also a major driver of the United States craft beer market. These events provide a platform for breweries to showcase their products, engage with consumers, and build brand recognition. Festivals and beer tasting events offer craft beer enthusiasts the opportunity to sample a wide variety of beers, learn about brewing processes, and interact with brewers. This direct engagement helps build a loyal consumer base and fosters a deeper appreciation for the craftsmanship involved in brewing. One notable instance is the Great American Beer Festival (GABF), which is one of the largest and most prestigious beer festivals in the United States. Held annually in Denver, Colorado, the GABF attracts over 60,000 attendees and features more than 4,000 beers from hundreds of breweries across the country. The popularity and large attendance figures of this festival illustrate the significant role that such events play in promoting the craft beer industry and driving market growth.

United States Craft Beer Market Segmentation:

IMARC Group provides an analysis of the key trends in each segment of the market, along with forecasts at the country and regional levels for 2024-2032. Our report has categorized the market based on product type, age group, and distribution channel.

Breakup by Product Type:

• Ales
• Lagers
• Others
   

The report has provided a detailed breakup and analysis of the market based on the product type. This includes ales, lagers, and others.

Ales are one of the primary segments in the craft beer market, characterized by their warm fermentation process which typically takes place at temperatures between 60 to 75 degrees Fahrenheit as per the United States craft beer market statistics. This fermentation process allows for a quicker production time compared to lagers, often resulting in richer and more complex flavors. Ales encompass a wide variety of styles, including pale ales, IPAs (India Pale Ales), stouts, porters, and Belgian ales, each offering distinct flavor profiles ranging from hoppy and bitter to malty and sweet.

Lagers represent another crucial segment in the craft beer market, distinguished by their cold fermentation process, which typically occurs at temperatures between 45 to 55 degrees Fahrenheit. This slower fermentation process, which can take several weeks to months, results in a clean, crisp, and smooth flavor profile. Lagers include a variety of styles such as pilsners, bocks, dunkels, and Helles, each known for their subtle and balanced flavors.

Breakup by Age Group:

• 21–35 Years Old
• 40–54 Years Old
• 55 Years and Above
   

A detailed breakup and analysis of the market based on the age group has also been provided in the report. This includes 21–35 years old, 40–54 years old, and 55 years and above.

The 21-35 years age group is a crucial segment in the United States craft beer market. This demographic, often referred to as millennials and Generation Z, is known for its adventurous and experimental nature. They are more likely to seek out new and unique beer flavors, supporting the trend of innovation in the craft beer industry. This age group values experiences over material goods, making craft beer festivals, brewery tours, and tasting events particularly appealing.

The 40-54 years age group, comprising mainly Generation X and older millennials, represents a mature and financially stable segment of the craft beer market. This demographic tends to have higher disposable incomes and is willing to spend more on premium and high-quality products. They appreciate the craftsmanship and authenticity associated with craft beers, often favoring brands with a strong heritage and reputation. Health consciousness is also prevalent in this age group, leading to a growing interest in low-calorie, organic, and gluten-free craft beer options.

The 55 years and above age group, including baby boomers and older generations, represents a smaller but steadily growing segment of the craft beer market. This demographic often values tradition and nostalgia, which can be leveraged by craft breweries offering classic beer styles and heritage brews. They are generally more health-conscious and may prefer lower alcohol content beers or non-alcoholic craft beer options. This age group also has a strong preference for quality over quantity and is willing to pay a premium for well-crafted beers.

Breakup by Distribution Channel:

• On-Trade
• Off-Trade
   

The report has provided a detailed breakup and analysis of the market based on the distribution channel. This includes on-trade and off-trade.

The on-trade distribution channel refers to the sale of craft beer through establishments where it is consumed on the premises. This includes bars, restaurants, pubs, breweries, and taprooms. On-trade sales play a significant role in the craft beer market as they offer consumers a unique and immersive drinking experience. These establishments often feature a wide selection of craft beers on tap, allowing patrons to sample different varieties and discover new favorites. The social atmosphere of on-trade venues enhances the overall appeal of craft beer, making it a popular choice for social gatherings and events.

The off-trade distribution channel encompasses the sale of craft beer through retail outlets where the product is purchased for consumption elsewhere. This includes supermarkets, liquor stores, convenience stores, and online retailers. Off-trade sales are crucial for the craft beer market as they provide widespread availability and convenience for consumers who prefer to enjoy craft beer at home or at private events. The rise of e-commerce has also significantly boosted off-trade sales, with many breweries and retailers offering online ordering and home delivery services.

Breakup by Region:

• Northeast
• Midwest
• South
• West
   

The report has also provided a comprehensive analysis of all the major regional markets, which include Northeast, Midwest, South, and West.

The Northwest United States of the United States, encompassing states such as Washington, Oregon, and Idaho, is renowned for its thriving craft beer culture. This area is home to some of the oldest and most established craft breweries in the country, with a strong emphasis on innovation and sustainability. The abundant natural resources of the United States, such as high-quality water and locally grown hops, contribute to the production of distinctive and high-quality beers.

The Midwest United States, including states such as Michigan, Wisconsin, and Illinois, has emerged as a significant player in the United States craft beer market. Known for its strong agricultural base, the Midwest benefits from access to high-quality barley and hops, essential ingredients for brewing. The United States has a rich brewing history and a growing number of craft breweries, brewpubs, and taprooms that cater to a diverse consumer base. The Midwest is also characterized by its community-oriented approach, where local breweries often collaborate and support one another.

The Southern United States, including states such as Texas, Florida, and Georgia, has seen rapid growth in the craft beer market in recent years. This United States, traditionally dominated by large beer producers, has experienced a rise in the number of craft breweries and an increasing consumer interest in locally-produced beers. The warm climate and diverse population of South contribute to a growing demand for refreshing and innovative beer styles. Craft breweries in the South are known for their creativity, often incorporating unique local ingredients and flavors into their brews.

The Western United States, including California, Colorado, and Arizona, is a major hub for the craft beer market. California, in particular, is home to some of the most iconic and influential craft breweries in the country. The diverse climate and geography of the United States provide ideal conditions for growing a variety of hops and other brewing ingredients. The West is known for its innovative and pioneering spirit, with breweries frequently pushing the boundaries of traditional beer styles and techniques.

Competitive Landscape:

• The market research report has also provided a comprehensive analysis of the competitive landscape in the market.
• Key players in the United States craft beer market are employing various strategic efforts to drive growth and maintain their competitive edge. One significant effort is the expansion of distribution networks, enabling breweries to reach a wider audience both domestically and internationally. By partnering with large distributors and retailers, craft breweries can ensure their products are available in more markets, increasing brand visibility and consumer access. Another effort is the introduction of innovative and seasonal beer varieties. Craft breweries are continuously experimenting with new ingredients and brewing techniques to create unique flavors that cater to evolving consumer tastes. This innovation attracts new consumers and also retains existing ones by keeping the product line fresh and exciting.

United States Craft Beer Market News:

• May 28, 2024: American craft brewers were awarded 102 medals at the 2024 Australian International Beer Awards—the region’s largest annual beer competition. The 2024 competition, run by Melbourne Royal, attracted more than 2,500 beer entries from a record-breaking 400-plus breweries from 23 countries. They were judged by 84 beer experts from around the globe, including 15 international judges from nine countries.

United States Craft Beer Market Report Scope:

Key Questions Answered in This Report:

• How has the United States craft beer market performed so far, and how will it perform in the coming years?
• What has been the impact of COVID-19 on the United States craft beer market?
• What is the breakup of the United States craft beer market on the basis of the product type?
• What is the breakup of the United States craft beer market on the basis of the age group?
• What is the breakup of the United States craft beer market on the basis of the distribution channel?
• What are the various stages in the value chain of the United States craft beer market?
• What are the key driving factors and challenges in the United States craft beer market?
• What is the structure of the United States craft beer market, and who are the key players?
• What is the degree of competition in the United States craft beer market?

Key Benefits for Stakeholders:

• IMARC’s industry report offers a comprehensive quantitative analysis of various market segments, historical and current market trends, market forecasts, and dynamics of the United States craft beer market from 2018-2032.
• The research report provides the latest information on the market drivers, challenges, and opportunities in the United States craft beer market.
• Porter's five forces analysis assists stakeholders in assessing the impact of new entrants, competitive rivalry, supplier power, buyer power, and the threat of substitution. It helps stakeholders to analyze the level of competition within the United States craft beer industry and its attractiveness.
• The competitive landscape allows stakeholders to understand their competitive environment and provides an insight into the current positions of key players in the market.