On Tuesday, the Brewers Affiliation (BA) released its annual manufacturing report for the U.S. brewing trade. As was already starting to turn into clear last year, the affect of the worldwide pandemic meant beer took a success in 2020, but the commerce affiliation’s report additionally exhibits small and impartial producers met the problem with resilience.
Collectively, craft brewery manufacturing dropped 9 p.c in comparison with the 12 months prior, which is the largest hit the trade has taken in the fashionable period. Craft beer’s quantity share of the market additionally dropped, from 13.6 p.c in 2019 to 12.3 in 2020.
Craft producers, which the BA defines as those that brew 6 million barrels or much less yearly and who’re lower than 25 p.c owned by a non-craft brewer, weren’t the one ones to endure. The beer market as a complete fell Three p.c in quantity, and draught gross sales have been down 40 p.c because of on-premise closures and important capability restrictions.
But even confronted with substantial difficulties, craft breweries rose to the problem. The variety of producers reached an all-time excessive in 2020. Whereas 346 breweries needed to shut their doorways completely, 716 new breweries opened for enterprise, taking the full quantity to eight,764 in operation.
Whereas the speed of impartial brewery openings slowed 30 p.c from the earlier 12 months, consultants declare that this was inevitable, and solely partly as a result of Covid-19 disaster. Different contributing elements embrace rising market competitiveness and maturity.
The excellent news is that there’s hope for craft breweries because the world slowly returns to some type of pre-pandemic regular.
“Whereas many small breweries will stay below stress till they will totally reopen and welcome their communities into their breweries, the 2020 closing charge has remained on par with 2019, suggesting that the overwhelming majority of breweries will survive going ahead,” mentioned Bart Watson, chief economist of the Brewers Affiliation.