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North America Craft Beer Market Size (2024 - 2029)

The North America craft beer market is experiencing growth driven by increasing consumer awareness of its health benefits and a shift in preferences towards tastier, low-alcohol options. The demand for unique flavors, such as fruit, spice, and floral notes, is attracting consumers, prompting manufacturers to innovate with new offerings. Despite challenges like the product's low shelf life and the impact of COVID-19 on sales channels, the market is adapting by focusing on longer-lasting products. These trends are contributing to the expansion of the market size in the region.

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Market Size of North America Craft Beer Industry

North America Craft Beer Market Summary
Study Period 2019 - 2029
Base Year For Estimation 2023
Forecast Data Period 2024 - 2029
Historical Data Period 2019 - 2022
CAGR 13.00 %
Market Concentration Low

Major Players

North America Craft Beer Market Major Players

*Disclaimer: Major Players sorted in no particular order

North America Craft Beer Market Analysis

North America Craft Beer Market is projected to register a CAGR of 13% during the forecast period, 2022-2027.

The increase in craft beer consumption, particularly in the North American region, is aided by the growing awareness of its benefits among consumers. Craft beer provides more health benefits than the average red wine. Additionally, the change in consumer preference for tastier and low-alcohol-content beer is one of the primary reasons driving the growth of the ales beer category.

Moreover, the demand for unique flavors has been increasing in the region. In line with this trend, the manufacturers are also introducing many flavorful and strong craft beers in the market, including fruit & spice, honey flavored, sour, malty & sweet, and tart & funky flavors which have drawn the consumer's attention in the region. For instance, in September 2021, Blue Moon LightSky, the top-selling light beer in the craft segment, announced its plan to release a second flavor, called Blue Moon Light Sky Tropical in the United States in early 2022. The company claimed that this beer has a fresh, candied pineapple and orange scent and pours a light golden color with a faint haze. Floral flavors such as Chamomile elderflower and lavender balance and compliment flavors add subtle taste and smooth quality. Such addition of innovative flavors and new ingredients in craft beers have increasingly drawn consumers in the region. However, the low shelf life of the product is a major hindrance to the industry's growth. Hence, the brewers are shifting towards the production of products with longer shelf lives and less expensive ingredients which is expected to increase the production of craft lager.

COVID-19 impacted the North American craft beer market drastically with significant disruptions in supply chains and the impact of government measures to stem the spread of COVID-19 has extensively resulted in shuttering bars, restaurants, and clubs, a major channel for craft beer sales. According to the Distilled Spirit Council of the United States, 78 State stores in Alaska remained closed in March 2020, and 99 stores remained open with reduced hours or occupancy restrictions. These factors have significantly impacted market sales.

North America Craft Beer Industry Segmentation

Craft beers are beers brewed by independently owned breweries that are not part of (or quietly owned by) a large corporation. They are primarily rich in taste and are of good quality. These beers have a distinct taste from regular watery beer, usually mass-produced. The craft beer market is segmented by type, distribution channel, and geography. Based on the type of craft beer, the scope includes ales, pilseners & pale lagers, specialty beers, and other types. By distribution channel, the market is further segmented into on-trade and off-trade distribution. Based on country, the market is segmented into the United States, Canada, Mexico, and Rest of North America. For each segment, the market sizing and forecasts have been done on the basis of value (in USD billion).

By Product Type
Ales
Pilsners and Pale Lagers
Speciality Beers
Other Types
By Distibution Channel
On-Trade
Off-Trade
By Country
United States
Canada
Mexico
Rest of North America
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North America Craft Beer Market Size Summary

The North American craft beer market is experiencing significant growth, driven by increasing consumer awareness of its benefits and a shift in preferences towards tastier, low-alcohol options. This trend is particularly evident in the ales beer category, where unique flavors such as fruit, spice, and honey are gaining popularity. The introduction of innovative flavors and ingredients by manufacturers is attracting consumer attention, despite challenges like the product's short shelf life. The market's expansion is further supported by the rise of microbreweries, which are capitalizing on the demand for variety and flavor. The craft beer sector remains resilient, with a growing number of breweries and a diverse range of beer styles contributing to its robust growth.

The COVID-19 pandemic posed significant challenges to the craft beer industry, disrupting supply chains and impacting sales channels like bars and restaurants. However, the market has shown resilience, with an increase in production and the emergence of new brands. The presence of higher-income groups and the availability of a wide variety of beer styles are also fueling market growth. Key players in the industry, such as Boston Beer Company and Sierra Nevada Brewing Co, are expanding their operations through new brand launches and acquisitions. The market is expected to continue its upward trajectory, supported by advanced distribution networks and a focus on sustainability, which resonates with environmentally conscious consumers.

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North America Craft Beer Market Size - Table of Contents

  1. 1. MARKET DYNAMICS

    1. 1.1 Market Drivers

    2. 1.2 Market Restraints

    3. 1.3 Porter's Five Force Analysis

      1. 1.3.1 Threat of New Entrants

      2. 1.3.2 Bargaining Power of Buyers/Consumers

      3. 1.3.3 Bargaining Power of Suppliers

      4. 1.3.4 Threat of Substitute Products

      5. 1.3.5 Intensity of Competitive Rivalry

  2. 2. MARKET SEGMENTATION

    1. 2.1 By Product Type

      1. 2.1.1 Ales

      2. 2.1.2 Pilsners and Pale Lagers

      3. 2.1.3 Speciality Beers

      4. 2.1.4 Other Types

    2. 2.2 By Distibution Channel

      1. 2.2.1 On-Trade

      2. 2.2.2 Off-Trade

    3. 2.3 By Country

      1. 2.3.1 United States

      2. 2.3.2 Canada

      3. 2.3.3 Mexico

      4. 2.3.4 Rest of North America

North America Craft Beer Market Size FAQs

The North America Craft Beer Market is projected to register a CAGR of 13% during the forecast period (2024-2029)

Boston Beer Company, Heineken NV, Constellation Brands, Anheuser-Busch InBev and Sierra Nevada Brewing Co are the major companies operating in the North America Craft Beer Market.

North America Craft Beer Report Snapshots

North America Craft Beer Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)