USA: All signs point to craft beer output being down in 2023, Brewers Association says
The Brewers Association has said that all signs point to production being down in 2023 — a first (excluding a unique 2020) for BA-defined independent brewers. The association also noted that despite the growing headwinds, there were more brewery openings than closings this year.
The BA reported about 420 brewery openings in 2023 compared to about 380 closings.
No surprises here, but the BA pointed out the primary culprits to declining sales are slowing demand growth, competition from across beverage alcohol, and a retail environment marked by declining draught sales and reduced shelf space for craft.
“Many of craft’s challenges call for new strategies to reach new and existing customers in new occasions with new flavors and innovations,” the BA said in their ‘2023 Year in Beer’ report.
“Amid headwinds, there is good news: the continued overall popularity of the category. Independent brewers still sell more than one out of eight beers in the United States, and consumers spend roughly a quarter of their beer dollars on a beer from a small and independent brewer.”
Supply chain issues moderated somewhat in 2023, 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, where precipitation remained below average and temperatures stayed above normal. 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.
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