Challenges continue in a mature and competitive market

As 2023 draws to a close, the Brewers Association—the not-for-profit trade association dedicated to small and independent American craft brewers—recaps a year that proved challenging for many small and independent brewers facing a mature, competitive marketplace. Its mid-year 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. Craft’s challenges come in the context of a slow-growth environment for all beer. Pricing, demographics, and marketing/branding continue to be factors in beer’s continued share loss within beverage alcohol.

“While many individual businesses are struggling, there is good news in the continued overall popularity of the category. Yes, things are more challenging, but independent brewers still sell more than one out of eight beers in the United States; beer drinkers spend roughly one out of four 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,” said Bart Watson, chief economist, Brewers Association.

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 The Brewers Association prioritized working closely with state guilds nationwide to modernize outdated laws and regulations, with efforts supporting shipping craft beer directly to consumers, beer franchise law reform, and self-distribution authorization for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.