Let’s get the not-spectacular news out of the way. The US beer market is trending downward. Production volume sales (by barrel) were down about 1% in 2017, another 1% in 2018, and still another 1% through October 2019. Does that mean craft beer is canceled? Hardly!
To start, these figures are largely representative of the behemoths -- those decidedly un-crafty beverage companies led by AB-InBev, MolsonCoors, Constellation Brands and others -- which make up about 68% of the US beer market by production volume. In fact, annual CRAFT beer dollar sales, production and overall market share have, once again, increased. According to US market research firm IRI, 2019 craft dollar sales and craft volume production are up 2.8% and 4%, respectively, year over year.
Of course, it’s not all Double Sunshine and Double Rainbow(s). These craft growth numbers actually mark a stagnation, if not a slowdown, in craft’s US growth rate over the last few years. For context, craft dollar sales growth for 2018 and 2019 are about equal, but down from 2017’s 5.7% mark. And 2019’s approximate 4% production growth is ever so slightly down from each of the prior two years. A number of reasons account for this, including the proliferation of other alcohol options like spiked seltzer, canned wine and pre-made cocktails, as well as a decline in overall alcohol consumption (which, if I may, is insane; have these people been reading the news?? Guys, it’s end of days. Drink up!! Anyways…). And approximately 300 breweries shuttered in 2019, a record number to date.
But wait (final emotional ping pong), back to the happy stuff! According to The Brewer’s Association*, 2019 saw a record number of US breweries in operation — over 8,000! And the state of beer travel is better for it. Beer tourism isn’t going anywhere…or, perhaps more appropriately, it’s now going everywhere! While the wine travel business has been around for decades, beer tourism has really just exploded in the last five years or so. Want proof? How about the fact that there’s now an annual conference dedicated to beer tourism? How about the fact that there’s now a damn beer airline? And beer hotels! And beer spas! And, of course, the local day tours and pedal buses that are popping up in seemingly every city with a decent beer culture.
Oh, and ahem…there’s a company offering fully curated, behind-the-scenes beercations in cities across the US (and a killer, ever-changing, always unique NYC beer day). So hey…craft beer and beer travel are doing just fine. Because beer truly is better where it’s born!
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*The BA is “a 501(c)(6) not-for-profit trade association. The association is an organization of brewers, for brewers and by brewers. [Their mission is] to promote and protect American craft brewers, their beers, and the community of brewing enthusiasts.” — from The Brewers Association About Us.
**Other beer/beer travel stats and information provided by the following sources:
https://www.brewbound.com/news/power-hour-nielsen-shares-2019-craft-beer-consumer-insights
https://www.cnn.com/2019/12/06/business/alcohol-trends-2019-beer-sales/index.html
https://www.porchdrinking.com/articles/2019/03/12/americas-2018-top-50-largest-breweries-by-volume/
https://www.brewersassociation.org/statistics-and-data/national-beer-stats/
https://www.brewbound.com/news/brewers-association-4-volume-growth-likely-in-2019
https://www.brewbound.com/news/iri-off-premise-beer-sales-top-37-billion-in-2019
https://www.foodandwine.com/beer/brewdog-airlines-ohio-scotland-flights
https://magazine.trivago.com/beer-spa/
https://bmtcon.com/2019/10/15/beer-tourism-important/
https://www.craftbeer.com/beercation-destination/airbnbeers-breweries-with-hotels-inns-camping-and-more