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Forbes article on USA brewery growth

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  • Forbes article on USA brewery growth

    Just read this Forbes article on the explosive number of breweries now in the USA. Are we really now at 9,000+ breweries as stated in the article?! Link to article below.

    I have definitely noticed the growth over the past few years. I think the real questions are “Can 9,000+ breweries even be sustainable in the market place?” and “Are we creating our own craft beer bubble to pop soon with this growth?”.

    Most new breweries I see are carrying tons of debt and seem to have excess, unused capacity in the brewery...looking like they just borrowed huge loans to spend on a brewery that can produce more beer than they can even sell. Get another economic downturn and I think a good number of these breweries won’t survive. The beer can be great but if it’s made because of huge bank loans one little hiccup like a recession, raw material disruption, or having another 100 breweries within 1 hour driving distance all fighting for the same customers can pop a bubble.

    Too many breweries? Reaching danger levels of market saturation? There’s nothing to worry about and we can add another 1,000 breweries next year without a problem? Thoughts???
    Last edited by Catfish002; 06-13-2018, 09:42 PM.

  • #2

    I would not say that your US market is facing a bubble, it's more at risk of seeing a reduction in potential market shares between breweries. As the population ages, consumers drink less and less beer, also the market shares of craft breweries are not growing as fast as the potential capacity of production of the combined breweries (new and old). Gradually you will see more fragile businesses close down and older breweries lose track. It's already happening.

    A bubble is more price related.
    Last edited by MLAllier; 06-14-2018, 05:47 AM.