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Craft beer growth outpacing broader breweries industry growth

Craft beers are growing, and seasonal offerings are big drivers of growth.

September 18, 2014

The growth of the craft beer industry is expected to outpace the broader breweries industry over the next five years by a rate of 7.4 percent versus 1.4 percent, according to an IBISWorld survey.

IBISWorld estimates craft beer revenue grew at an annualized rate of 19.0 percent to $4.2 billion over the last five years. Forecasts put the segment at $6 billion by 2019.

American craft breweries are defined as small (producing under 6.0 million barrels a year) and independently owned (they cannot have greater than 25.0 percent investment by a noncraft-beer alcohol company).

Seasonal offerings, particularly limited-edition fall flavors like pumpkin beer, could drive growth for both craft beer and the broader industry. IBISWorld estimates that seasonal beers comprise 23.7 percent of the craft beer industry’s total revenue; recent trends show that this market segment is likely to continue growing strongly over the next five years.