Mass production is the way of life today, however, there are welcome exceptions to the rule. Craft Beer is concocted using traditional, non-mechanized methods in a small brewery and is far removed from the impersonal ways of the production line, allowing for experimentation and signature ales. In the United States, craft beer has always been a big commodity- in the next five years however, this beverage is set to fizz that much more.
Market for Craft Beer in the US is a Highly Competed Segment
Popular names such as Anheuser-Busch InBev, Boston Beer, D.G. Yuengling & Sons, New Belgium Brewing and Sierra Nevada rule the roost when it comes to the craft beer market in the US. These offer a plethora of beer types that appeals to the casual as well as the most avid beer aficionado. Making a name for one’s own brewery amongst this heap is a daunting challenge. However, there are encouraging signs that have emerged in the US market recently, namely-
1) Rapidly increasing number of craft breweries in the US
Responding to the obvious growth potential, new players are boldly entering this market with distinct beer varieties and strategic marketing plans. The market offers rich returns on investment and the target audience is always game for new experiences. As per a comprehensive market research report on this subject, Technavio states that the number of craft breweries across the US will rise exponentially in keeping with the incrementing demand. This will easily surpass the growth rate of 16% that was posted by the craft beer market in the US in 2016, in relation to 2015. California with currently 600 craft breweries and Colorado with 300 will lead the pack, yet again.
2) Millennials are driving the craft beer industry in the US
With an annual spending power in excess of USD 200 billion, consumers in the 18-34 years bracket are a lucrative target for the craft beer industry in the US. Thankfully, this generation, the millennials, are now the largest living generation in the States having overtaken the baby boomers (consumers in the 51-69 age bracket) in 2015. Also, this demographic has shown great affinity for craft beer and are highly receptive of new flavors, variety and labels, with a vast majority of them consuming craft beer on a weekly basis. The factors that do help gravitate an average millennial to a particular beer brand include, quality, a big selection of flavors, consistent availability and seasonal offerings. Naturally, craft beer companies are coming up with innovative ways to appeal to this target audience.
3) Frequent launch of new craft beer products is fueling the growth
If variety is the spice of life (and a healthy market presence) then craft breweries in the US are playing it right. New beer flavors are being introduced at regular intervals and the vendors are indulging in the requisite R&D to placate the growing demand with a number of specialist craft beer products. The successful launch of said products results in greater market visibility for the vendor and create additional revenue streams, not to mention, keep the consumers interested as well.
As can be gleaned from the article, the market for craft beer in the US is booming and attracting new players and innovative methods that concerns the production, promotion and consumption of this time-tested ale. There are challenges too- as can be gathered from Technavio’s market research report on this subject- yet, the traditional way of brewing beer has its enthusiasts and encouragingly, their tribe is growing exponentially in the US.