The Mountain West is known for its production 鈥� and love 鈥� of craft beer. A new report suggests that as the industry's growth slows and competition increases, however, breweries in the region will have to work even harder to stand out.
The Brewers Association鈥檚 annual report, , found that small and independent brewers produced 24.3 million barrels of beer nationwide in 2022, slightly less than in 2021. The craft beer industry's market share by volume reached 13.2%, up 0.1% over 2021. Overall, the U.S. beer market shrank 3% by volume last year.
鈥淭his isn't a bubble bursting, but it is a more competitive market than it was in the past,鈥� said Bart Watson, the chief economist with the Brewers Association. 鈥淏reweries are going to have to find new ways to either have incremental strategies that add to what they're doing, or simply outcompete other competitors in the marketplace.鈥�
Watson added that even though production grew for some craft breweries, higher overhead costs are hitting breweries hard.
鈥淭hese numbers don't necessarily capture the full business picture,鈥� he said. 鈥�2022 saw costs rise for breweries just like everywhere else, and so just because your production grew doesn't mean your margin of revenue grew or your bottom line.鈥�
The report also found more craft breweries opened than closed last year. With more than 500 openings and 300 closures in 2022, that put the number of operating craft breweries at an all-time high of 9,552. Still, it's the second year in a row with an overall decrease in craft brewery openings nationwide.
"I think the market turned more competitive and challenging鈥攁nd quicker than many people, including myself, expected," Watson said.
The association also released a list of the top 50 producing craft brewing companies in the U.S., based on beer sales by volume. CANarchy 鈥� a collective of brewers that includes Oskar Blues Brewery in Colorado and Wasatch Brewery in Utah 鈥� rank 8th, and Odell Brewing in Fort Collins ranks 22nd.
This story was produced by the Mountain West News Bureau, a collaboration between Wyoming Public Media, Nevada Public Radio, Boise State Public Radio in Idaho, KUNR in Nevada, the O'Connor Center for the Rocky Mountain West in Montana, 萝莉少女 in Colorado, KUNM in New Mexico, with support from affiliate stations across the region. Funding for the Mountain West News Bureau is provided in part by the .
