Lotte Peplow, the Brewers Association’s American craft beer ambassador for Europe, looks at what happened in 2022 and challenges that may lie ahead for the American craft beer industry in 2023.
Photographs: Brewers Association
As we launch headlong into 2023, let’s look across the Atlantic at what’s happening in the American craft beer industry and how it may affect the UK and Europe.
American breweries and restaurants experienced mixed signs of recovery last year. While total on-trade sales have bounced back to their previous trends, draught beer is still recovering. Small brewpubs and taprooms proved nimble as supply chain disruptions continued, and fared better than micros and regional brewers fighting for shelf space in an increasingly competitive distribution environment.
Climate change and raw material challenges continued to plague American craft brewers throughout the year. Although the 2022 barley harvest improved, the severe depletion of stocks in 2021 kept supplies tight and prices high in a dynamic and changing market.
The 2022 hop acreage declined slightly in the US, while the European harvest was the worst in decades. Disruption in the supply of aluminium cans and CO2 continued to impede recovery.
Despite a challenging two years, the number of breweries continues to grow. More than 9,500 breweries operated in the US in 2022. The Brewers Association expects to see openings and closures roughly balance each other out in 2023 as the segment continues to mature.
For an industry that thrives on in-person interaction, it was great to see beer festivals return in force during 2022. After a two-year hiatus, the 40th anniversary of the Great American Craft Beer Festival took place in Denver, Colorado, in October and was attended by 40,000 beer lovers.
In the UK, the Brewers Association showcased 23 American craft breweries, pouring 66 UK-rare, high-quality American craft beers at London Craft Beer Festival, at Tobacco Dock, last August. It was attended by 12,000 beer lovers.
The maturing American craft beer industry continues to grow more competitive, facing both internal business pressures and, externally, the continued growth of new beverage alcohol competitors.
Given the learnings from 2022, the Brewers Association predicts that, in the States in 2023:
- Brewery openings will be the lowest in more than a decade
- Distributed craft beer volume will not grow
- The supply chain will remain rocky, but collectively average prices will come down from 2022 peaks
- Total brewery employment will increase.
The American craft beer industry faces daunting challenges in 2023, but brewers are known for their innovation and flexibility and will need both as they evolve to meet the next generation of beer lovers with new beers and new occasions. 2023 may well be a reset year for many brewers as they return to more thoughtful innovation to balance customer demand and adapt to supply chain fluctuations.
What does this mean for the UK? The UK is an important export market for American craft beer and the largest in Europe and second biggest individual export market accounting for 8.4% of all exports.
American craft beer will continue to be available and can be found at online retailers such as Athletic Brewing, Beers of Europe, Beer Merchants, Beer Gonzo, House of Trembling Madness, and Homes Bargains stores (while stocks last), as well as via selected bottle shops, off-licences, online subscription services, supermarkets, and many pubs and bars.
And finally, a date for your diary. The Craft Brewers Conference, America’s largest craft brewing industry gathering, takes place from 7th-10th May in Nashville, Tennessee. Early bird pricing is still available until 10th January.
• Free downloadable resources to help you understand and enjoy American craft beer are available on the Brewers Association website.
About the author
Lotte Peplow is a certified cicerone, accredited beer sommelier, international beer judge, and beer writer who conducts talks and tastings about American craft beer, organises events, and is a keen advocate of beer and food pairing.
She’s been involved with the Brewers Association, a trade association representing small and independent American craft brewers, since 2006, initially on an ad hoc basis, since when her role has evolved and expanded. In 2019 she was awarded the title of American craft beer ambassador for Europe.
Her role is to identify opportunities for international expansion of American craft beer and to raise awareness about the quality and diversity of beer styles from America’s small and independent craft brewers. Based in London, Lotte is also a member of CAMRA’s London tasting panel.
About the Brewers Association
The Brewers Association represents 5,700-plus US breweries. The BA’s independent craft brewer seal is a widely adopted symbol that differentiates beers by small and independent craft brewers.
The BA organises events including the World Beer Cup, Great American Beer Festival, Craft Brewers Conference and BrewExpo America, SAVOR: An American Craft Beer and Food Experience, Homebrew Con, National Homebrew Competition and American Craft Beer Week.
The BA publishes The New Brewer magazine, and Brewers Publications is the largest publisher of brewing literature in the US.
Beer lovers are invited to learn more about the dynamic world of craft beer at CraftBeer.com and about homebrewing via the BA’s American Homebrewers Association and the free Brew Guru mobile app.
