American craft brewing trends and insights

Lotte Peplow, The Brewers Association’s American craft beer Ambassador for Europe, looks at how American craft brewers can continue to stay relevant, and explores current trends impacting the craft beer market…

The Brewers Association, the not-forprofit trade organisation representing small and independent American craft brewers, conducts an annual consumer survey** looking at trends within the American craft beer industry. In this article we take a highlevel look at what’s going on today.

Increased Competition

One of the primary reasons craft beer consumption is slowing is due to increased competition within the beverage alcohol space. With more choice than ever before American craft brewers are facing stiff competition from wine, liquor, spirits, seltzer, cider, FMBs (flavoured malt beverages), RTDs (ready to drink) and more. In the survey, the number of consumers indicating increased consumption over a 12-month period decreased from 14% of respondents in 2017 to 7% in 2022. Furthermore, 11% of American craft beer drinkers claim they drink less craft beer now because they drink more of something else, up from 8% in 2017. And 90% of weekly craft beer drinkers say they drink at least one other beverage alcohol category weekly. When a consumer walks into a bar these days they’re not thinking “what craft beer shall I try first” they’re thinking “what beverage alcohol shall I buy today.”

Brewery Count Growth

Despite competition from other beverage alcohol categories, beer remains a dominant beverage in America today. Craft brewers* accounted for 13.1% by volume and 26.8% by financial value of the total U.S. beer market. There are approximately 9,500 American craft breweries and, despite the last three challenging years, the number of breweries has continued to grow, albeit more slowly. The number of openings and closings is expected to balance out this year as the industry moves into a more mature pattern of growth.

Flavours

Survey respondents were asked which flavours they were interested in versus a year ago and these included crisp, juicy/hazy, dark, malty, hoppy, spicy (yeasty) and tart. Crisp is overwhelmingly the dominant flavour showing steady growth over the last five years. Crisp holds interest among all craft beer drinkers from those who drink daily to those who only indulge several times a year. Crisp is also the most popular flavour profile amongst all age groups.

Juicy/hazy flavours were also popular, up 9% in the last three years, and appeal to consumers under 54. Tart beers are the least popular and polarising by age with the 45+ age group not keen on them, but 50% of people say they’re more interested in tart than they were a year ago.

Demographics

The American craft brewing industry is a maturing market. Breweries are getting older as are beer drinkers. This brings opportunities but also challenges as breweries will need to do more to reinvent themselves and stay relevant to the next generation of beer drinkers. In 2030 the American Census Bureau projects there’ll be as many legal drinking age population Gen Zs (born between 1945 and 1965) as Baby Boomers (born between 1996 and 2010) and 15 million more Millenials (born between 1981 and 1995) as both the former categories.

In the last 10 years the age of the craft beer drinker has gone up 1.5 years and if that trend continues over time we’ll see the craft beer demographic continuing to age. A few years ago Millenials may have been on higher incomes and drank more high end products but now they’re aging or moving out of that stage and drinking less or adapting their consumption accordingly. A more mature market requires brewers to think about finding new niches for growth. Another important factor is knowing your consumer base and matching the flavour profile in your beers with their preferences.

Attributes

The next generation of craft beer drinkers is showing greater interest in what goes into their beer. Weekly craft beer drinkers were asked what attributes they were interested in such as local ingredients, low carb, low ABV, organic, low calorie, gluten-free, smaller formats etc. Local ingredients ranked highest, followed by lower ABV and low calories.

Some of the trends we’re seeing in the broader alcohol beverage category are only going to intensify within craft beer as the incoming generation of beer drinkers clearly cares more about these attributes than previous generations. The youngest segment, 21–24-year-olds, showed stronger interest in these attributes than in the past. For example, a beer drinker who cares about calories at 21 is going to care a lot more about them at 34 because in general calories become more important as people age. The number of respondents not interested in any of the attributes dropped from 37% in 2019 to 27% in 2022.

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Importance of ABV

Alcohol by volume (ABV), particularly higher and lower ABV, is becoming more important to craft beer consumers and driving trends in the market where beers of 4% and below are growing and 6/7/8% and above are also growing.

Respondents were asked how important ABV is to them and 72% of craft drinkers said that it was at least somewhat important rising to 82% of weekly craft drinkers. Nearly half of all weekly craft beer drinkers said ABV was very important to them. Attributes like ABV, calories. gluten-free etc are becoming more important on beer labelling and making them visible on packaging, tap handle or font is key.

Craft Beer Styles and Trends

IPAs remain the dominant style in the American craft beer world accounting for approximately one third of the craft beer market. Part of IPA’s success stems from the category’s continual evolution. A category formerly marked by high bitterness is now inviting a new and growing segment of beer drinkers seeking less bitter, juicier, and hazy profiles in addition to the classic American IPA.

Lagers and lighter styles are also growing. Some of this growth may be due to the effects of the generational shift as an aging population moves towards lighter styles but it may also be because the latest legal drinking age (LDA) drinkers grew up, and are more accustomed to, craft beer as an option than previous generations. The majority of the beer market is lager so if craft brewers can find a way to unlock the potential for craft lager, and convince consumers to pay the price for quality, there’s an opportunity for breweries.

In 2016 three quarters of craft beer drinkers thought style first brand second when making their purchasing decisions, but over time the brand is becoming more important and more relevant. Craft beer drinkers are more confident in their choices because they know the brands they like and this is particularly the case as drinkers age. Style still wins but consumers now think 60:40 style v brand when purchasing beer whereas in 2016 the figure was 75:25 style v brand.

Innovation

In general the craft beer industry needs to find new niches to grow, new places to sell, new innovations, new customers and new preferences. Brewers should be asking themselves what else they could do to make their business more successful.

A good example of innovation is the nonalcohol sector which represents 0.5% of the overall craft beer market. This may not seem much but when compared to other subsets of the market it’s a good chunk and it’s growing. Trial and discovery, particularly in January, stimulates the market and leads to steady growth. In America the biggest volume driver for the non-alcohol sector corresponds with that for the beer industry in general, ie. in the summer months, particularly in the week leading up to Independence Day on 4th July.

The UK is the largest export market in Europe and second biggest individual export market for American craft beer accounting for 8.4% of all exports. American craft brewers pioneered the global trend for craft beer and their brewing skill, creativity and relentless innovation produces world-class quality beers that are popular throughout the world and regularly win top honours at prestigious international beer competitions. Last autumn, American craft beers won a total of 85 medals at three high profile global competitions.

Craft Brewers Conference

And, there’s still time to register for the Brewers

Association’s Craft Brewers Conference® & BrewExpo America® (CBC™), America’s largest gathering of the craft brewing industry, and World Beer Cup which is taking place in Nashville, Tennessee, 7-10th May 2023. The Craft Brewers Conference (CBC) delivers concentrated, affordable brewing education and idea sharing to improve brewery quality and performance. More than 11,000 brewing industry professionals will have the opportunity to meet with 500 exhibitors and hear from 200 speakers during 70+ seminars across ten different relevant educational tracks ranging from brewery operations to sustainability and government affairs. The World Beer Cup, often referred to as ‘the Olympics of Beer’ is expected to be the most competitive to date with more than 11,000 entries anticipated from around the world. Winners are announced at an awards ceremony on 10th May. CBC registration closes on 29th April 2023.

Lotte Peplow is the American Craft Beer Ambassador for Europe for the Brewers Association and is based in London, UK. She is a Certified Cicerone®, BDI accredited Beer Sommelier, beer writer, author, beer communicator, international beer judge, homebrewer and beer lover.

Don’t miss Bob Pease, CEO/ President of the Brewers Association’s keynote speech at SIBA BeerX in Liverpool at 4pm on Wednesday 15th March.

The Brewers Association publishes a wealth of resources to help brewers, importers, distributors, wholesalers and retailers understand and enjoy craft beer, downloadable free of charge from www.brewersassociation.org

*According to the Brewers Association definition

** Harris Poll 2022, among 1,900 US adults aged 21+

- Determination of alcohol, density, extract, and further quality parameters

- Optional measurement of turbidity, color, and pH value, based on your needs

- Easiest analysis of beer, wine, and spirits in various production stages - Full compliance with standard reference methods

the UK’s biggest beer & brewing event

BeerX UK 2023, set to take place on the 15th and 16th of March at Exhibition Centre Liverpool, is the biggest trade event in the UK for beer and brewing businesses, homebrewers and craft beer retailers.

www.beerx.org

Attracting over 3,000 attendees from the beer industry last year, it is attended by brewers and homebrewers, as well as beer retailers, buyers and industry professionals looking to expand their knowledge, discover the UK’s best independent craft beers, view the latest brewing equipment, ingredients and services, or network with others from across the industry. Featuring a packed schedule of expert workshops, panel debates, networking opportunities, a huge trade show of supplier products and services, and the SIBA AGM – plus a trade-only beer showcase exclusively featuring awardwinning independent craft beers in cask, keg, bottle and can – BeerX UK 2023 is seeking to build on the record attendance recorded in 2022 with what is shaping up to be a must-attend event.

The SIBA International Beer Awards, Homebrew Beer Awards & National Independent Beer Awards will all take place at BeerX 2023

The new SIBA International Beer Awards 2023 and SIBA Homebrew Beer Awards 2023 will make their debut at BeerX, alongside the National finals in the SIBA Independent Beer Awards – the culmination of 12 months of regional heats across the UK.

The SIBA International Beer Awards welcome breweries from across the globe to enter beer across a variety of internationally recognised style categories – all judged by some of the UK’s most experienced beer judges, Beer Sommeliers, and Master Brewers.

Entry into the awards is included as part of the SIBA’s newly launched International Brewing Membership, which also includes a range of membership benefits such as free entry to the UK’s biggest beer and brewing event – BeerX UK in Liverpool.

Free to enter for SIBA Homebrewer members, the SIBA Homebrew Beer Awards be judged by professional brewers at BeerX and give homebrewers the chance to see their beer professionally brewed at an award-winning brewery.

This year SIBA has partnered exclusively with Yakima Chief Hops to provide Homebrewer members with their new experimental hop HBC 586 which has been described as “a large medley of fruit flavours…mango, guava, lychee, citrus with herbal notes.” Entrants are challenged to brew the best single hop pale ale which showcases the full potential of this exciting new hop variety.

Kegstar will return as Headline Sponsors in 2023, extending their four-year partnership with the event

SIBA’s Head of Comms & Marketing Neil Walker welcomed Kegstar as headline sponsors for 2023: “Kegstar has helped BeerX grow into the worldclass beer and brewing event it is today, and we are hugely grateful for their continued support as we look to collaborate with them as Headline Sponsors for the next three years. Container care is a huge worry for all breweries and Kegstar works closely with breweries of all sizes to offer a solution that works for them, whilst offering friendly and flexible customer service. They’ll be available throughout BeerX if you’re interested in a chat, some table tennis, or a beer!”

A new “Empowering People” Award will be included in the Business Awards 2023, seeking to highlight the best breweries in the UK to work for.

The new award will put a spotlight on independent craft breweries who go above and beyond for the members of their team; empowering people to achieve more in their professional career, introducing initiatives and incentives which create a positive working environment, making efforts to promote diversity and inclusivity, or providing benefits or support mechanisms which encourage a happier healthier life for employees.

“The brewing sector is an incredibly hands-on and collaborative industry and the wellbeing of employees is at the forefront of all successful brewing businesses. This new award seeks to highlight the breweries in the UK who are not only supporting their staff but helping them to have a happier, more successful working life.” Neil Walker, SIBA Business Awards Chair of Judges.

The SIBA Business Awards seek to congratulate excellence in the brewing industry across a variety of categories, from pump clip, can and bottle design, to efforts taken by brewers to make their business more sustainable, innovative or successful, as well as naming the UK’s best pubs, bars and retailers of craft beer from independent breweries.

The new categories introduced last year for the “UK’s Best Independent Craft Beer Retailer – Online”, “UK’s Best Independent Craft Brewery Webshop” and “Community Engagement” will also return for the 2023 Awards following huge interest from the industry.

The SIBA Business Awards 2023 are judged by a panel of industry experts and presented at the UK’s biggest beer and brewing event –BeerX UK in Liverpool, March 2023.

For more information about the awards visit www.siba.co.uk/businessawards

2023

The SIBA Business Award Categories for 2023:

Marketing Implementation

Sustainable Business

Community Engagement

Individual Design

Concept Design

Business Innovation

Commercial Achievement

NEW!

UK’s Best Independent Craft Beer Retailer – Single

UK’s Best Independent Craft Beer Retailer – Online

UK’s Best Independent Craft Beer Bar or Pub – City

UK’s Best Independent Craft Beer Bar or Pub – Rural

Empowering People

UK’s Best Independent Craft Brewery Taproom

UK’s Best Independent Craft Brewery Webshop

UK’s Best Independent Craft Beer Retailer – Multiple

Best Independent Craft Beer Promotion

Supplier Associate of the Year

SIBA Brewery Business of the Year

Unique new look glassware has been launched for BeerX UK 2023