Lotte Peplow, the Brewers Association’s American Craft Beer Ambassador for Europe, takes a look back at a year which was marked by recovery and new challenges in the American craft beer world, and predicts what might happen in 2022
In 2021, in the United States, the sales tide swung back toward breweries, bars, and restaurants, and many American craft brewers began to see the path back to their former production volumes, if not new growth.
Record brewery count
Despite the pandemic, more than 9,000 breweries operated in the US in 2021, a 6% increase on 2020. What’s more, even in a challenging year, small and independent American craft breweries are a powerful, economic force, contributing $62.1 billion to the US economy in 2020.
The industry provided more than 400,000 jobs, with nearly 140,000 directly at breweries and brewpubs, including serving staff.
Supply chain disruption
Weather damage, labour issues, and manufacturing shortages and delays all affected the brewing industry throughout 2021. Barley production dropped to 118 million bushels, down 31% from 2020. Yields in Canada were also down sharply, at 38% below 2020. This was the smallest US crop since 1934 and the smallest North American crop since 1949. Baby hop yards (first year plantings) and some aroma varieties appear to be the most heavily affected by the heat.
Many craft brewers pivoted to packaging their product to bring in much-needed income when their primary sales platforms disappeared (tasting rooms, bars, and restaurants) during the pandemic.
In addition, breweries showed innovation across styles and flavour, as the category continued to innovate and create new beers that would return them to pre-pandemic growth levels. Sour or sweet, low or no alcohol, fresh and fruity, or barrel-aged and stout, there’s a beer style and flavour for everyone. And despite the challenges and disruptions of 2021, American craft brewers sold new beers to new customers in new ways.
Cans currently make up around 60% of independent craft packaged volume, and, as demand for sustainable aluminium beverage packaging continues to grow at an accelerated pace and large beverage brands switch from plastic bottles to cans, the squeeze on supply for small brewers continues to tighten.
The beer drinker
Disruptions are not just happening among craft brewers, but also consumers; the American beverage alcohol consumer is increasingly diverse, and female. The shift is ongoing and will likely continue going forward.
For instance, female drinkers under 25 now outnumber male drinkers under 25. For craft beer to continue growing it will need to connect better with that diverse customer base. The Brewers Association is working to build those resources to help the craft brewing community thrive.
2022 beer predictions
Given learnings from 2021, the Brewers Association predicts that over in the US in 2022:
- Comparable craft production will exceed 2019 levels once again
- On-premises sales will improve, but draught will still not be back to 2019 levels
- At the brewery, sales will hit all-time highs
- Operating brewery numbers will continue to climb, but at a lower rate than in previous years
- Inflation will come to craft: brewing and manufacturing cost increases will lead to a hike in average beer prices over recent years
Cheers to a prosperous and successful 2022!
About the Brewers Association
The Brewers Association (BA) is the not-for-profit trade association dedicated to small and independent American brewers, their beers and the community of brewing enthusiasts.
The BA 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.
