Craft beer has exploded in popularity over the last decade, with a growing number of small, independent brewers popping up around the world. But in recent years, craft beer sales have begun to slip as consumer preferences and trends shift. In this blog post, we’ll take a look at what’s driving the declining craft beer sales figures and explore how brewers are adapting to these changes.
What Is Craft Beer?
Craft beer is defined by the Brewers Association as “small, independent and traditional,” meaning that it must meet certain criteria such as size (annual production of 6 million barrels or less), ownership (at least 75% owned by an independent craft brewer) and brewing method (using traditional ingredients). Most craft beers are also known for their unique flavor profiles and distinct characteristics.
How Popular Is Craft Beer?
According to figures from the Brewers Association, craft beer now accounts for 13.2% of all U.S. beer sales by volume in 2019, up from 12.7% in 2018 – though overall growth has been slowing in recent years, with only 2% growth between 2017 and 2018 compared to 5% between 2016 and 2017. Meanwhile, overall U.S. beer industry sales were up just 0.3%.
Regional Trends in Craft Beer Sales
Though overall numbers have been stagnant, regional trends vary widely across the country: some states have seen dramatic declines in craft industry share while others have enjoyed double-digit increases. For example, several Midwestern states including Ohio saw significant drops between 2014-2019, while Massachusetts has seen double-digit growth since 2010. As a result of these varied trends, many brewers are focusing on local markets where demand remains strong rather than trying to appeal to national customers.
Why Are Craft Beer Sales Declining?
There are a number of reasons why craft beer sales may be dipping including oversaturation (with nearly 7500 breweries operating in the United States alone), changing consumer tastes (many younger drinkers turning away from craft beers towards other alternatives like hard seltzers) and increased competition from macrobrewers who increasingly offer their own “crafty” beers. Additionally inflated prices due to market saturation may drive consumers away who want quality but don’t want to pay exorbitant prices for it.
How Are Brewers Adapting?
In response to this dip in demand brewers are increasingly focusing on quality rather than quantity – stressing commitment to innovation through experimentation with new hops and grains as well as adjusting recipes and processes. Many are also beginning to embrace marketing tactics such as branding their products differently or actively engaging with social media. Some larger breweries are banding together creating alliance funds that allow them access capital so they can stay competitive.
The Future of Craft Beer
Despite recent dips in sales there is still reason for optimism about the future of craft beer—provided that brewers focus on producing innovative products that capture consumers’ imaginations without sacrificing quality or raising costs too high. As long as they continue to push boundaries while creating unique brews using locally sourced ingredients – then there’s no reason why craft won’t remain popular for many years to come!