US craft breweries innovated and diversified during the pandemic

Independent US craft breweries adapted, innovated and diversified during the pandemic all while bringing communities together.

In its end of year report, the Brewers Association indentified how over 9,000 breweries  operated in the US in 2021, a 6% increase from 2020, while in 2020, small and independent American craft brewers alone contributed US$62.1 billion to the US economy. Additionally, the industry also provided more than 400,000 total jobs, with nearly 140,000 jobs directly at breweries and brewpubs, including service staff at brewpubs, however the pandemic came with setbacks and the sector responded.

Despite disruptions like weather, labor shortages, manufacturing delays and more, craft brewers reportedly overcame obstacles and proved resilient during times of crisis the report highlighted, describing how breweries were “nimble” and pivoted to packaging their products to bring in much-needed income in. Amidst a time when primary sales channels such as tasting rooms, brewpubs, bars, and restaurants felt challenges during the pandemic, the craft beer industry responded with development and adaptation.

Breweries showed innovation across styles and flavour, and craft as a category continued to fill the innovation pipeline with new beers to return to pre-pandemic growth levels, the report observed.

In addition, while the American alcohol consumer became increasingly diverse and female, and female drinkers under 25  began to outnumber male drinkers under 25, the US craft beer industry noted that the shift would likely continue and the Brewers Association immediately began working to build resources to help diversify the craft brewing community further and welcome its new demogrraphic.

Bob Pease, president and CEO, Brewers Association said: “Coming out of a challenging year, small and independent breweries persevered and found new ways to innovate among a changing environment and evolving consumer preferences and expectations. Craft brewers’ ability to take risks, innovate flavors, and build better communities has made the US the craft beer capital of the world, and I can’t wait to see what next year brings for brewers and beer lovers alike.”

This year, supporting small brewers went beyond showing up at neighborhood tasting rooms, brewpubs, restaurants, and bars as the report identified, in March 2021, the American Rescue Plan Act legislation created the Restaurant Revitalisation Fund (RRF)–a US$28.6 billion relief effort that provided grants to hospitality businesses.

The initial legislation did not list breweries as being eligible for grants, but the Brewers Association fought hard to ensure that breweries would be included in the Restaurant Act and, thanks to its efforts, approximately 1,600 breweries received more than US$450 million in grants.

Bart Watson, chief economist, Brewers Association added: “Government relief helped offset some of the economic damage brought in 2020, and the BA will continue to ensure that small and independent brewers’ voices are heard by federal agencies. Relief must be spread equally to protect and expand market access and ensure competition in the beer market. More work to rebuild growth and improve the industry remains for 2022, but 2021 showed progress on that journey.”