The Evolution of Craft: A New Era for Beer?

Consumers are still drinking less but still drinking better… and it still matters

Premiumisation remains the defining trend in beer. The global beer category has not witnessed any significance volume growth for many years, but in value terms sales continue to rise.

There is a lack of consensus surrounding the definition of “craft”

The US Brewers Association defines a craft brewer as being “small, independent and traditional”. These concepts form the basis for most interpretations of craft, but there is ongoing debate regarding ownership, size limits and ingredients. The term “independent” is becoming increasingly prominent.

The future is not looking so dark

Craft beer is no longer focused almost exclusively on dark beer, as it was in the early days of the movement. The desire for variety and innovation in core markets such as the US is encouraging microbrewers to branch out into different styles.

US craft enters a new era of more restrained growth

Growth in the US has decelerated. A rise of just 5% was recorded in 2017, which is a notable reduction from the double-digit growth witnessed a few years ago. A more moderate performance is not necessarily a cause for concern overall; however, there will inevitably be more brewery closures in the near future.

Innovation will be key in increasingly competitive and mature craft markets

Innovation through new styles and experiential offers –often through brewpubs –will help to maintain consumer interest. Disruptors affecting the wider beer industry, such as the rise of digital technology and growing health awareness, will also impact microbrewers. Adaptation and flexibly will be highly advantageous.

Global expansion: microbreweries are opening across the world

Craft beer growth may have become more restrained in its original markets, but there is huge growth potential elsewhere. While exports from the US and Western Europe are often a starting point, locally-owned microbreweries tend to be quick to follow and are opening in cities from Bogotá to Beijing and beyond.