No surprise, given the pandemic: The Brewers Association’s annual survey revealed the first decline in production by small and independent brewers since the association started tracking those numbers in the late 1970s. Nonetheless, analysts and industry watchers see reasons for optimism as we go deeper into 2021.
What the Survey Found
- In 2020, small and independent brewers collectively produced 23.1 million barrels of beer, including export sales of about 300,000 barrels—a 9 percent decline from 2019.
- The overall beer-market volume declined only 3 percent, which means that craft beer also declined in overall beer-market share for the first time.
- Craft beer’s share of the overall beer market by volume was 12.3 percent—down from 13.6 percent the previous year.
- The retail dollar value of craft beer in 2020 was estimated at $22.2 billion—a decline of 22 percent from 2019.
- Craft beer’s market share by value was 23.6 percent for 2020.
The Context
Largely due to pandemic-era restrictions and the resulting changes in consumption habits, U.S. draft sales were down about 50 percent. No small brewery operator needs to be reminded how that forced a pivot to lower-margin packaged and online sales.
Despite the tough market, the number of craft breweries operating in the United States achieved another all-time high in 2020: The BA reports a total of 8,764, suggesting that we are likely to surpass 9,000 sometime this year. That number accounts for 716 new openings and 346 closings.