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(Photo © Brewers Association)
“2022 will be a critical year for many brewers.” Bart Watson, Brewers Association
On April 5, The Brewers Association, a Boulder, CO-based trade association representing small and independent American craft breweries, released its 2021 Annual Craft Brewing Industry Production Report for the US craft brewing industry.
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In 2021, small and independent brewers collectively produced 24.8 million barrels of beer and realized 8% growth increasing craft’s overall beer market share by volume to 13.1%, up from 12.2% the previous year.
This growth is stronger than volume primarily due shift back to on-premise as bars and restaurants reopened again. Craft brewers provided more than 172,643 direct jobs in 2021, a 25% increase from 2020.
“Craft brewer sales rebounded in 2021, lifted by the return of draught and at-the-brewery traffic,” said Bart Watson, chief economist, Brewers Association. “However, the mixed performance across business models and geographies as well as production levels that still lag 2019 suggest that many breweries remain in recovery mode.
Add in continuing supply chain and pricing challenges, and 2022 will be a critical year for many brewers.”
In spite of the pandemic, The number of operating craft breweries amazingly continued to climb in 2021, reaching an all-time high of 9,118, including 1,886 microbreweries, 3,307 brewpubs, 3,702 taproom breweries, and 223 regional craft breweries.
Openings decreased for a second consecutive year, with the continued decline reflecting a more mature market. Ongoing pandemic challenges and rising interest rates were additional factors. The closing rate also declined in 2021, likely helped by a combination of better sales numbers and additional government relief through the Restaurant Revitalization Fund, which was available to some brewpub and taproom brewers.
Openings decreased for a second consecutive year, with the continued decline reflecting a more mature market. Ongoing pandemic challenges and rising interest rates were additional factors.
The closing rate also declined in 2021, likely helped by a combination of better sales numbers and additional government relief through the Restaurant Revitalization Fund, which was available to some brewpub and taproom brewers.
Bart Watson: Photo © Brewers Association
“How you interpret the numbers this year is really a matter of perspective,” Bart Watson, said in his State of the Industry address at the Craft Brewers Conference in Minneapolis this week.
“The craft beer industry is now a more mature market” Watson added, and its future depends on whether you’re a “pint half full or half empty” person.”A more mature market forces us to think about the customer more and find niches where we can grow.”
“While the boom in breweries of a few years before has certainly slowed, the continued growth in small breweries shows the solid foundation of demand for their businesses and beers.”
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