The Brewers Association Releases Year in Beer Report: 550+ Craft Breweries Opened in 2022, 200+ Closed

Brewers Association Year in Beer 2022

The Brewers Association (BA), the not-for-profit trade association dedicated to small and independent American craft brewers, released its 2022 Year in Beer Report this week, offering a glimpse into the state of the industry.

Despite challenges, 2022 saw a return to in-person events, increased competition, continued supply chain issues, varied growth, and the nurturing of the next generation of craft beer professionals, according to the association.

Even with the challenges, more than 9,500 breweries are operating in the United States with about 550 new breweries opening and 200 closing their doors.

The report points to mixed signs of recovery in 2022 where on-premises sales bounced back to their previous levels in breweries, bars, and restaurants. Small and local brewpubs and taprooms fared better than micros and regionals by being creative. Micros and regionals are also still fighting for limited shelf space on the distribution supply side.

Supply Issues and Climate Change

Climate change and ingredient disruptions also continued to affect shortages during 2022. And even though the barley harvest improved, the severe depletion of stock in 2021 kept prices high this year. Hop harvests in the U.S. declined in 2022, and European harvests of the flowering ingredient was the worst in decades, according to the report. The supply of aluminum used for cans and CO2 also continue to thwart recovery.

“Riding through a challenging and competitive year, taprooms and brewpubs found a way to keep customers coming through the door, while brands with a retail presence continued to compete with other beverage alcohol choices for shelf space,” said Bart Watson, chief economist for BA. “2023 will be a rest for many brewers as they return to more conscious and thoughtful innovation to balance customer demand and adapt to supply chain fluctuations.”

While the challenges are daunting, the Brewers Association said, “craft brewers are known for their innovation and flexibility and will need both as they evolve to meet the next generation of beer lovers with new beers and new occasions.”

On the state and national level, BA continued working to ensure small brewers have a voice in equitable market access, fair tax rates, and sensible regulations.

Fighting for Craft Brewer Rights

The association submitted comments to the Department of the Treasury this year in its fight for fair treatment of craft brewers about unfair state franchise laws, restrictions on direct-to-consumer (DTC) sales, and wholesaler consolidation.

The Brewers Association joined fights against lowered excise taxes for ready-to-drink cocktails (RTDs) in Arizona, New Jersey, Washington, and Vermont and grassroots advocacy in Illinois, New Jersey, California, and Colorado. The BA says it will continue to support direct-to-consumer shipping, protect existing allowances in states such as California, and bringing those practices to other states that don’t have the same protections.

In February, a 64-page report was released by the Department of Justice (DOJ) and the Federal Trade Commission (FTC) on competition in the beer, wine, and spirits industry. The report details eight overarching concerns with the alcohol industry and it offers recommendations to improve competition, including updating regulations from the Alcohol and Tobacco Tax and Trade Bureau (TTB).

The BA said the report’s recognition of laws that “inhibited the growth and competitiveness of craft producers” was applaudable, and recommended the department re-examine state franchise laws, direct-to-consumer access, and ways to battle slotting fees, and other “discriminatory conduct” within the industry.

The association also fought for bipartisan legislation that would give the United States Postal Service (USPS) the same ability as private carriers to ship alcohol in states where it is legal. The USPS shipping Equity ACT (H.R.3287/S.1663) legislation is beneficial to breweries, consumers, and the postal service, according to the Brewers Association.

Brewers Helping Others

The BA Year in Beer Report also highlights how industry veterans are working to assist newcomers in building professional careers. Through its mentorship, the association has connected more than 100 mentors with entrepreneurs and professionals who are interested in expanding their knowledge and skills in the craft beer industry. It also seeks to support those interested in entering the craft brewing industry for the first time. The program has now hosted 124 mentees and 102 mentors in its fourth program.

Since 2019, when the Brewers Association mini grants program was created, more than $150,000 in grant funds to DEI organizers and advocates around the U.S. have been provided to those who have promoted and fostered a more diverse, equitable, and inclusive craft beer community.

Also, of note in this year’s Year in Beer report was a return of in-person events at beer festivals, such as this year’s 40th Great American Beer Festival in Denver, Colorado the first week of October that drew more than 40,000 attendees.

“The maturing craft industry continues to grow more competitive, facing both internal business pressures and the externally continued growth of new beverage alcohol competitors,” Watson said. “The challenges are daunting, craft brewers are known for their innovation and flexibility, and will need both as they evolve to meet the next generation of beer lovers with new beers and occasions.” The Brewers Association forecasts fewer brewery opening in 2023 with less volume of beer distributed. The supply chain will also remain rocky, but prices are anticipated to be below the 2022 peaks. The report also says brewery employment will increase.

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