Hot Topics in Craft Brewing An Update from the USA Chuck Skypeck Technical Brewing Projects Manager Brewers Association chuck@brewersassociation.org
Agenda Who is the Brewers Association? USA Market Trends USA Craft Market Trends USA Craft Styles
Who is the Brewers Association? The Brewers Association is an organization of brewers, for brewers and by brewers. Over 3,500 U.S. brewery members 46,000 members of the American Homebrewers Association Over 1,000 allied trade, beer wholesalers, retailers, individuals, other associate members Brewers Association Purpose To promote and protect American craft brewers, their beers and the community of brewing enthusiasts.
Hot Topics in Craft Brewing USA Market Trends Premiumization in the beer business The high end of the beer industry is the dominant driver of growth. Analysts are predicting that the high end of the market will control more than 50% of the market by the end of the 2020 s. Craft is the leading segment of the high end and is poised to capitalize on the seismic shift in market preference.
3% 4% 3% 12% 11% 13% Craft 22% 61% 40% Imports 13% 99% 82% 24% Domestic (various) 17% 34% 46% 52% Light Beer 48% 15% 1970 2014 2022 (projected)
Hot Topics in Craft Brewing USA Market Trends
Hot Topics in Craft Brewing USA Craft Market Trends Growth trends - The craft brewing industry has seen incredible growth in the past decade: 12% average annualized growth for ten years. 15.0% category growth from 2010-2013. Domestic sales growth of 17.2% by volume in 2013.
Hot Topics in Craft Brewing USA Craft Market Trends Craft in 2015 Volume: 13% increase in volume 12.2 total volume share 24.5 billion barrels total volume Dollars 16% increase in dollar value 21% total dollar value share $22.3 billion total value 8
Hot Topics in Craft Brewing USA Craft Market Trends 4893 total operating breweries 4820 operating craft breweries
Hot Topics in Craft Brewing USA Craft Market Trends 4893 total operating breweries 4820 operating craft breweries
Hot Topics in Craft Brewing USA Craft Market Trends 2016 midyear production projections 8% growth % growth slowing as the base grows 4893 total operating breweries 4820 operating craft breweries
Hot Topics in Craft Brewing USA Craft Market Trends 2016 production projections 7% growth % growth slowing as the base grows Slower growth with more breweries means fewer opportunities for growth 4893 total operating breweries 4820 operating craft breweries
Hot Topics in Craft Brewing USA Craft Market Trends 2016 growth rates projections Off premise: +6.1% On premise: 2.0% Premise use: +62.1% Other Brewery sales: +40.0% Export: +11.1% 4893 total operating breweries 4820 operating craft breweries
Hot Topics in Craft Brewing USA Craft Market Trends 2016 growth rates projections Premise use: +62.1% Other Brewery sales: +40.0% Long Tail 4893 total operating breweries 4820 operating craft breweries
Hot Topics in Craft Brewing USA Craft Market Trends How important is local in purchase decisions? Craft Be
Hot Topics in Craft Brewing USA Craft Market Trends Oregon Craft Brewers are Outselling Non Oregon Craft Brewers in Dollar Sales Source: IRI InfoScan IRI Oregon State FOOD Quad Weeks Jan 27, 2013 through July 12, 2015
Hot Topics in Craft Brewing USA Craft Market Trends
Hot Topics in Craft Brewing An Update from the USA Craft Styles
Hot Topics in Craft Brewing An Update from the USA Craft Styles IPA!
Hot Topics in Craft Brewing An Update from the USA In 2015, IPA gained four share points, and now accounts for one quarter (25%) of total craft dollar off premise sales
Hot Topics in Craft Brewing An Update from the USA Diversity within the IPA style American 64.9% of craft IPA sales Imperial 20.4% Session 6.9% English 2.8% Belgian White 2.7% Fruit / Veggie / Spiced 3.5% Black 0.5% Other 0.4%
Hot Topics in Craft Brewing An Update from the USA Session and Fruit / Veggie / Spiced IPA s continued to be among the fastest growing IPA sub styles in terms of new brand offerings
Hot Topics in Craft Brewing An Update from the USA Rounding out the top ten craft styles 2 Seasonal 19.0% 3 Variety 10.3% 4 Belgian style Wit 8.1% 5 Pale Ale 7.2% 6 Amber Ale 4.0% 7 Amber Lager 3.8% 8 Fruit / Veggie / Spiced 3.5% 9 Wheat Beer 2.9% 10 Golden Ales 2.1%
Hot Topics in Craft Brewing An Update from the USA On the Horizon Sour styles, such as Berliner Weiss, Gose and American Wild Ale, are rapidly gaining favor with brewers and consumers
Hot Topics in Craft Brewing An Update from the USA Craft Cans Total Craft Cans gained +3.5 share points and now account for an 11.4% share of Total Craft Dollar Sales.
The growth of craft brewing in the U.S. has: Created 121,843 small brewing jobs Craft beer has affected supply chain dynamics
Boutique Brews, Barley, and the Balance Sheet Structural changes in malt barley industrial use require an updated forecasting approach Jennifer K. Bond, PhD Economist, Crops Branch Markets and Trade Economics Division USDA/ERS