Craft beer is a classic example of history repeating itself; what’s old is new once again.
What started for many people as a hobby enjoyed in individual garages and basements surged into the cultural mainstream as more people learned they loved to raise a glass with something other than the typical six-pack of beer.
Strong growth numbers for craft brewing
The craft brewing business boomed even during tough economic times. Over the last decade, the industry experienced unprecedented growth. In 2015, the craft beer sales market increased 15 percent to a total of $22.3 billion, according to the Brewers Association annual report. Total barrel production rose to 24.5 million in 2015 compared to only 10.1 million barrels back in 2010.
As of 2015, the number of United States’ craft breweries stood at 4,225 — compared to 1,754 locations just five years before.
Brewing no longer a “homogenous commodity”
Industry experts attribute the industry’s nationwide success to an interesting paradox in today’s culture: people’s modern tastes combined with a growing need to connect with something local.
Craft beer brewers work with a variety of flavor profiles, including chocolate, vanilla, citrus (lemon, grapefruit), coffee, chai and much more. Combining these flavors requires a special touch.
The Platform Beer Company in Cleveland, Ohio offers a variety of brews on their menu, including products ranging “from new American styles to experimental sours and barrel-aged beers”, according to the company’s official website.
“No longer is beer being viewed as some homogeneous commodity to be mindlessly consumed,” said Paul Benner, owner of The Platform Beer Company. “People's eyes are open to the variety of flavors in craft beer and I don’t see that changing anytime soon.”
Los Angeles-based marketing research company IBISWorld released a report in August 2015 highlighting craft beer’s diversity as a critical element to its rising popularity.
“The craft beer production industry brews virtually all styles of beer and regularly experiments with different ingredients to create variant styles of beer,” the IBISWorld report states. “As a result, the industry’s range of products is diverse.”
Brewers tap into local demand for direction
According to a 2015 Nielsen Marketing research study, consumers’ desire for locally sourced beer is on the rise.
“Consumers' desire to search for and buy local is growing,” the report found. “Among all alcoholic beverage categories, local has grown in importance the most among beer drinkers. In fact, 22 percent of beer drinkers said they think the importance of being made locally has grown over the last couple of years, compared with 14 percent of wine drinkers and only 5 percent of spirit drinkers.”
Benner, like other craft brewers, understands the need to tap into their community’s preferences to continue their business’ growth rather than having eyes on the big prize of national distribution. He believes locals connect with the passion of the craft breweries and this is a driving force behind the product’s appeal.
“We make an artisan product, not a generic one,” he concluded. “We make a Kobe filet mignon to the macro value menu hamburger.”
It is this attention to detail that Benner believes will keep the craft beer trending moving in a positive direction.
