The U.S. craft beer industry exploded from 1,500 breweries in 2010 to over 9,500 by 2020, fueled by millennial demand. But oversaturation, COVID taproom closures, rising costs, and shifting consumer habits toward health and savings have flipped the market. Now closures outnumber new openings.
Craft brewing went from one of the fastest growing industries to the brink of failure in just a few short years. Here's what happened. It started back in 2010 when there were just 1,500 craft breweries in the United States. By 2020, we had hit a 500% increase to over 9,500 breweries. So why was it so successful? It was because at first millennials were obsessed with beer. They wanted small batch, local, artisanal beer at an affordable price. None of that Bud Light nonsense you get from a big factory. And with the demand spike, investors took notice and wanted in. And suddenly the industry gets oversaturated. Then COVID hit. Bars close, people stop going out, and the entire business model of craft beer selling in cool little taprooms, it collapses overnight. But that was okay because they could just package the drinks and sell them from local shops for takeout. Except that went and made things worse because inflation starts crushing the breweries. Hops? Expensive. Equipment? Super expensive. Rent? Crazy expensive. And the dagger is millennials are moving on. They've started caring more about their health and finances. And for the first time ever, more breweries are closing than opening. Get the full story here.
