The explosive growth of the last decade slowed in 2018, even as craft beer continued to expand its share of the beer market.
According to a new white paper by PMMI Business Intelligence, craft beer sales revenue reported 8% growth in 2017. The first two quarters of 2018 showed sales revenue growth closer to 5%, with more moderate growth expected in the second half of the year - a sign that the market may have peaked due to oversaturation.
While growth may being slowing, it certainly hasn’t stopped. Craft breweries grew from 2,420 establishments in 2010, to over 7,000 in 2018. “Craft Breweries and Distilleries: Machinery and Automation Trends” states that the number of craft breweries continued to expand, with an almost 20% increase in 2018. On the downside, however, are the 129 brewpubs and microbreweries that closed in 2017 – the most recorded in the last five years.
Even though the craft beer market shows signs of slowing its growth, it continues to expand sales volume of the total beer market. In 2017 total beer volume sales fell 1%, but craft beer expanded retail sales revenue by 8%, accounting for 12.7% of the beer market by volume, and 23% by revenue.
Craft spirits – a similar market that is also consumer driven - is now showing signs of rapid expansion similar to the craft beer industry over the last decade.
To learn more, download the FREE white paper below.
Source: PMMI Business Intelligence, “Craft Breweries and Distilleries: Machinery and Automation Trends.”
Learn more about craft brew and craft spirit packaging solutions at PACK EXPO Las Vegas, September 23-25, 2019.