Craft Beer: Coming of Age or Past Its Prime?

Definitional issues remain a challenge

There is no universally agreed upon definition for “craft”. In the US, the Brewers Association has specific requirements that must be fulfilled to be included in its craft brewer category, but debate around the importance of size, ownership and ingredients continues. There is even less clarity elsewhere in the world.

The rise of microbrewers is linked to premiumisation…

A combination of aspirational consumption and a desire for quality is driving consumers across much of the world to drink less, but drink better. The rise of microbrewers broadly aligns with this trend.

…but the craft trend goes beyond taste and quality

The consumer search for more flavourful beers is an important driver behind the rise of craft, but the trend goes beyond this. Notions of localisation, authenticity and heritage play a key role, as does a desire to avoid what is seen as the established mainstream.

US performance: The end of the beginning?

Craft beer growth in the US is starting to decelerate. While this is inevitable to some extent, the speed and severity of the decline is a warning sign that the initial explosive growth period may be coming to an end. While craft is not going anywhere, the number of microbrewers in operation seems highly unsustainable.

Geographic expansion continues

While US growth slows, microbreweries are opening across the world as interest in craftsmanship in beer is reaching more and more markets, among younger consumers in particular. Local elements are adding a twist to classic styles.

Mixed potential outside beer

Attempts at imitation are, understandably, seeing the most success in categories closely related to beer - cider and hard soda. While there are opportunities in soft drinks, growing health consciousness will add extra challenges.