The craft beer industry is one of the most famous alcoholic beverage segments in the United States of America
Since 2013, the craft beer industry has experienced significant growth at an average rate of 11.8 percent per annum that has seen it hit the $6.8 billion mark in 2018. The increase is attributed to the fact that consumers continually demand different seasonal beers, pale ales, and stouts. The craft beer has since captured a significant number of drinkers whose favorite alcoholic beverage was premium and light brand beers. The commodity is readily available since most of the brewers of craft beers are regional producers, local brewpubs, and microbrewers.
Industry Trends in the United States
As mentioned earlier, the craft beer production in the United States has grown significantly to reach seven billion dollars in 2019. The number of employees employed in this sector has also increased by 9.2 percent while businesses have grown by 14.1 percent. The rapid growth in this sector can be attributed to the overwhelming support of the customers for craft beer. D.G. Yuengling & Son Inc. and Boston Beer Company hold the largest market share in the country.
The craft beer industry is exposed to specific threats and opportunities. The price of the craft beer is directly affected by the cost of barley since it is the primary ingredient that is used in the production of beer. Increasing the price of barley will result in increased grain bill of the brewer and thus result in reduced profit margins. Since the cost of barley is set to increase in 2019, the price of craft beer is also expected to increase. The consumption of alcoholic beverages affects the sales of craft beer. The overall demand for alcoholic drinks is determined by personal tastes, cultural and religious preferences, and income for the consumers. Craft beer is popular in the United States for males who are above 30 years. Since the expenditure of alcohol is expected in 2019 and beyond there is growth potential in the craft beer sector as well.