According to reports, the craft beer industry reported an increase in 2016. This was based on several factors, one of them being the rising number of such breweries in the United States.
The Craft Beer Industry Report And Status
A report on the matter was released by the Brewers Association. This is an American trade group established back in 2005. It includes more than 7,200 brewers, suppliers, distributors, craft beer retailers, individuals promoting such products, and breweries in planning.
According to the Brewers Association report, by the end of 2016, there were 5,301 breweries. 99 percent of them are defined as craft breweries. All were still in operation by the year’s end. 800 of them opened throughout 2016. Across the same year, less than 100 closed. This marks as increases in the area.
The craft beer industry market share presented an increase. It rose from 12.2 percent in 2015 to 12.3 percent for the following year. This followed an upwards trend, characterized by years with a rather more robust increase.
The Brewers Association also stated that the craft beer production was also up. Its numbers increased by 300,000 barrels a year and reached 24.6 million. Over the last four years, this increase was nonetheless higher than in 2016.
Bart Watson stated that “The era of 18 percent growth is over”.
The Reasons Behind The Market’s Slight Results Decrease
Watson is the association’s chief economist. He released this statement during a conference call. Also, the economist offered a basis for this statement.
In general, craft breweries are defined as being independently owned businesses. They are estimated to produce between 15,000 to 6 million barrels each year. According to Watson, the growth rates have become harder to achieve, mostly due to the following reasons. The craft beer industry is maturing. Also, the market may be even becoming saturated.
Watson also pointed out another relevant fact. Recently, big-name corporations have been acquiring several crafts of the U.S. craft breweries list. This was also established by the Brewers Association. Some such large companies are MillerCoors and Anheuser-BuschInBev.
Such acquisitions affect the craft beer industry results. For example, 1.2 million barrels were reclassified last year alone. This means that they were no longer counted in the craft beer segment. Had those barrels been added, the market’s production would have increased by 6 percent.
Nonetheless, according to Watson, the craft beer industry presents an upwards trend. It shows that consumers are still searching for and choosing such fuller-flavored beers. Reportedly, this is also regardless of their ownership.
Over the past 7 years, the craft beer industry production has almost tripled. Only 9.1 million barrels were registered back in 2009 compared to the 24.6 million ones from 2016.
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