The craft beer market isn't as new as some beer drinkers think, having begun in the late 1800s before the closure of the more than 4,500 independent breweries that produced beer for the national market. Craft breweries today primarily sell their unique beers to wholesalers, who then sell the beers to retail stores and restaurants. You can also open a brewpub and sell beer directly to customers for them to drink on-site or take home.
First and foremost, arguably the most impressive strategy, is the microbrewery's ability to inspire local spirits that build strong brand loyalty. For many, the main business is packaging beer and distributing it to liquor and grocery stores, but some breweries are also setting up tap rooms to give consumers insight into product creation.
Is the craft beer industry growing?
Production rose 7.9% to nearly 24.5 million BPD, although that was down from 26.3 million BPD in 2019. The growth rate of craft beer outpaced the 1.0% growth rate of the overall U.S. beer market.
Are craft breweries profitable?
Breweries have incredible profit potential - gross margins on beer range from 74% to 92%. While breweries and pubs do have other costs, such as food costs and additional labor, these costs only expand your access to the thriving retail market that makes breweries so successful.
What is the future of the craft beer industry?
The craft beer market is growing rapidly, and consumers are now looking for more local breweries to support. According to the Brewers Association, craft beer sales rose 7.9% in 2021 and are expected to grow even faster in the years ahead.