Craft beer is a category of brew that focuses on small production and local distribution. It is a beverage that is brewed with more natural ingredients without the use of heavy preservatives.
In nearly every industry, a few large companies control a huge share of the market. This is especially true in the beer business.
1. Enhanced Sensory Experience
Many of America’s breweries are still in the early stages, but they’re growing quickly. As the craft-beer movement takes hold, consumers are eager to explore different flavors and brewing techniques.
Craft beer’s rising popularity has prompted many large macro breweries to adapt by buying up smaller brewpubs and brands. This strategy allows them to tap into the market’s demand for more variety and flavor in their products. Check for craft beer delivery.
The result has been a more competitive market for microbreweries. And with new innovations like sour, fruity, and floral flavors, they’re attracting more customers and increasing their market share. Moreover,craft beers provide an opportunity to enjoy the taste of beer without the negative health effects of consumption. Thus, the growth of this industry is expected to remain positive in the foreseeable future.
2. Enhanced Efficiency
While the market is dominated by a few global players, the craft beer industry has seen growth due to increased consumer demand for variety. These consumers are organized through consumer associations and communities that help sustain craft breweries, while also fostering new product development.
The term “craft” in craft brewing refers to breweries that are small and independent. The Brewers Association defines the size of a craft brewery by the number of barrels it produces each year; two million barrels seems a good benchmark, as it is close to the limit for a large brewery to qualify as “macro” under Federal tax laws.
The innovation in craft brewing is not only in the style of the beer, but in how it’s produced. Using modern technology, craft breweries can produce more beers with better flavor and lower cost.
3. Enhanced Sustainability
From the refreshing simplicity of Blue Moon to the vanilla smoothness of Boddingtons and the classic brightness of Pilsner Urquell, a number of large companies control a vast majority of beer sales. But craft breweries are challenging that duopoly.
Nearly half of the 70 surveyed breweries and brewpubs highlighted sustainability initiatives. These actions focused on a wide range of issues, from reducing energy use through the installation of efficient brewing boilers and the use of natural light to creating renewable electricity procurement programs with the purchase of rooftop solar arrays.
Moreover, twenty-seven of the 70 breweries highlighted strong commitments to their employees. These efforts included "living wage" salaries, employee volunteer programs, on-site nurses and doctors, and wellness reimbursement including yoga sessions.
4. Enhanced Flexibility
The ability to adapt quickly and effectively to a rapidly shifting market environment is crucial for craft beer to maintain its growth. This is one reason that many breweries are adopting electronic batch records, machine learning software and other advanced technologies to digitize their data, make process improvements and identify and address quality issues more accurately and proactively.
This is also part of a movement in manufacturing known as Industry 5.0, which stresses the value of uniquely human skills like creativity and ingenuity while allowing computers and automated systems to do much of the repetitive, mechanical work. This shift is helping craft breweries connect with consumers and deliver a more meaningful product experience.
It also allows them to cut through powerful industry marketing campaigns to reach audiences that genuinely care about local and independent businesses.
5. Enhanced Security
The burgeoning interest in local and artisanal products, in green and socially responsible businesses, and the like has created the perfect storm for new entrants to disrupt established industry practices. Craft brewers are using effective messaging and a local focus to cut through the massive industry marketing budgets and savvy of their larger competitors.
The natural evolution of the brewing process lends itself to technological refinement and innovation. Using complex data technology, breweries can digitize their information and documentation, identify and correct quality deviations, trace batch histories and produce reports more efficiently.
The report also analyzes the leading, as well as fastest-growing, regional markets for craft beer and provides insights into key market drivers and challenges. This includes an in-depth assessment of the competitive landscape utilizing Porter’s five forces analysis.
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