Craft beer production remained flat at 24.3 million barrels last year|Free to use (CC0)
The beer market in the country shrunk 3% by volume in 2022 and craft brewers were particularly affected, according to the annual report from the Brewers Association.
Craft breweries faced multiple challenges like rising operational, manufacturing costs and increased competition in distribution. Production remained flat at 24.3 million barrels last year.
Axios reports that it is the first time in the industry’s history that there was no year-over-year production percentage growth.
Why?
According to industry analysts, millennials kick-started beer’s downward spiral by viewing ales, especially from bigger brands, as inauthentic and unappealing.
Gen Z’s preference towards spirits like seltzers, canned cocktails, wine, vodka and gin also contribute to the numbers.