Demeter Group Investment Bank released a State of the Craft Beer Industry report for 2013, and as you might expect, all signs point to a craft beer renaissance happening across the country.
The first page of charts sets the stage, showing that, overall, beer is losing market share to wine and spirits. Sad face, right? Well, not so fast. Within that big picture beer decline is the growth of upscale beer segments, most notably craft beer. Reading the tea leaves (or hop leaves, if you prefer), with increases in wine, spirits and craft beer, the alcohol-consuming market seems to be craving toward quality, which is a definite feather in the cap of the growing craft beer industry going forward.
In fact, by 2020, the group projects the craft beer industry will represent nearly 15 percent of the total U.S. beer market.
The entire report is a great read. Here are some of the numbers that we found most interesting or illuminating. This chart breaks down U.S. beer industry compound annual growth rate (CAGR) by segment from 2007 to 2001, and it is particularly telling:
- Sub premium — 0.9 percent decrease
- Premium — 2.4 percent decrease
- Super Premium — 4.6 percent gain
- Imports — 1.6 percent decrease
- Craft — 9.6 percent gain
The numbers get even more interesting when they are filtered within only 2009 to 2011
- Sub premium — 3.9 percent decrease
- Premium — 2.3 percent decrease
- Super Premium — 1 percent decrease
- Imports — 2.8 percent gain
- Craft — 13.9 percent gain
The report projected a 12 percent growth from 2011 to 2012. Another fun chart showed the components that make up the craft beer growth. That broke down as follows:
- Import beer 17 percent
- Premium beer 14 percent
- Super premium beer 6 percent
- Below premium beer 5 percent
- Current drinkers drinking more 30 percent
- Wine 8 percent
- Spirits 6 percent
- New craft drinkers 11 percent
The report also showed that five of the top 10 fastest growing beer brands are craft. Those brands include:
- (4) Dale’s Pale Ale — Oskar Blues — 46 percent growth (by cases) from 2010 to 2011
- (5) Lagunitas IPA — Lagunitas — 46 percent growth
- (7) Ranger — New Belgium — 36 percent growth
- (8) Torpedo — Sierra Nevada — 31 percent growth
- (9) Shiner Light — Gambinus — 30 percent growth
The report continues to dissect the demand for craft beer by type of drinker, geography and footprints of the largest brands and more. Check out the rest of the Demeter Group craft beer report here.