The 2023 Year in Craft Beer
The craft brewing industry had its share of challenges in 2023. The Brewers Association has recapped a year that proved difficult for many small and independent brewers facing a mature, competitive marketplace. Its midyear survey indicated a production dip, with all signs pointing to production being down in 2023, the first time outside of a unique 2020 that independent brewers have seen such a decline. It should be noted that all beer is experiencing a slow-growth environment. Pricing, demographics, and marketing/branding continue to be factors in beer’s continued share loss within beverage alcohol.
Federally and on the state level, the Brewers Association continued its work to ensure small brewers have equitable access to markets, fair tax rates, and sensible regulations. The Brewers Association prioritized working closely with state guilds nationwide to modernize outdated laws and regulations, with efforts supporting shipping craft beer directly to consumers, beer franchise law reform, and self-distribution authorization for small and independent craft brewers. “While the Brewers Association, along with state guilds, will continue to fight for additional market access in areas such as direct-to-consumer shipping, many of craft’s current challenges will require new strategies to reach new and existing customers in new occasions with new flavors and innovations,” said Bart Watson, chief economist, Brewers Association. “To grow in 2024, small brewers can work to take share within the same pie or grow the pie in new ways.”
Supply chain issues moderated somewhat during the year but climate change and persisting disruptions challenged brewers throughout the year. Climatic stresses affected the two primary agricultural inputs in brewing: barley and hops. The 2023 North American barley harvest was larger than in 2022 but still below the five-year average. Barley quality issues persisted, particularly in the Canadian prairie provinces and parts of Montana. In the U.S., hop acreage strung for harvest decreased due to the large volume of hops in inventory, but growing conditions produced above-average yields in most varieties. Climatic conditions continued to be challenging in Europe, with the quantity of hops harvested remaining well below average. The supply of CO2 stabilized somewhat, but spot shortages continued to affect some regions. In terms of brewery numbers, there were 420 openings and 385 closings. But there is still some good news: the continued overall popularity of the category. Independent brewers still sell more than one out of eight beers in the United States, consumers spend roughly a quarter of their beer dollars on a beer from a small and independent brewer and the industry remains a source of jobs and community across the country.
