BA Releases ‘Year in Beer 2022’ Report with Mixed Signs of Recovery
The Brewers Association today released their “Year in Beer 2022” report, a look back at a year “marked by overall growth but lots of variation.” While there were 200+ breweries that closed during the year, over 550 new breweries have opened, adding to the over 9,000 already operating. But the report also identified a number of challenges for craft brewers in the year ahead, indicating that the headwinds are far from over.
The BA said that they predict that brewery openings will be the lowest in over a decade, distributed craft volume will not grow and supply chain issues will remain rocky in 2023.
The usually optimistic and upbeat tone of the BA in its annual reports took a more subtle tone this year. “2023 will be a reset for many brewers as the maturing craft industry continues to grow more competitive, facing both internal business pressures and externally the continued growth of new beverage alcohol competitors,” said the report. “While these 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 new occasions.”
The BA also pointed to climate change as a longer-term challenge for the industry. “The two major agricultural inputs in brewing beer, barley and hops, are facing unprecedented challenges created by climate change. Although the 2022 harvest improved, the severe depletion of stocks in 2021 kept barley supplies and prices high in a very dynamic and changing market. 2022 hop acreage declined slightly in the U.S., while the European harvest was the worst in decades.”
Read the full report here.
