Craft beer

Craft beer, carbonated fermented malted alcoholic beverage created by small, independent breweries that produce a limited annual volume. Production runs are often modest, usually fewer than 1,000 barrels each year per brewery. With this narrow focus comes the freedom to experiment with styles and processes to produce distinctive craft beers, sometimes in batches as small as a single keg. Craft beers offer consumers a variety of choices, flavors, and styles and stand in contrast to the consistent and mild lagers from major brewing corporations that dominate the roughly $800 billion commercial market worldwide.

Although beer brewing has a long history, especially in Europe, where many of the approximately 100 known styles of beer were created, small-scale craft brewing that targets local and regional consumers is a recent phenomenon, especially in the United States, where it has exploded in popularity since the late 1990s. As of the 2020s, there are about 10,000 craft breweries in the world, with the majority located in the United States and Europe. Despite the increase in the number of craft breweries, craft beer still accounts for only a small percentage of beer sales, however.

A few factors differentiate craft beers (microbrews) from bigger beer (macrobrew) producers. Some countries set annual production limits for craft brewers: in the United States, microbreweries can produce no more than 6 million barrels (less than 3 percent of the market), a limit set by the Brewers Association, an American trade group. Other criteria include independence—no more than 25 percent of the brewery can be owned by an investor who is not a brewer. In addition, craft brewers were once required to use malt as their main grain for brewing, but that restriction has been relaxed, and craft beer can now include both “traditional or innovative brewing ingredients.” This means that craft beer can include grains like corn, barley, and rye, which are often cheaper and used by bigger beer companies.

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Most craft beer remains local and is not widely distributed, with the bulk of craft beer sales occurring in the taprooms of the breweries that produce them. Although the number of craft breweries has increased, the beer market is still dominated by macrobrews: in the United States, for example, craft beer sales accounted for 13 percent of the market by volume in 2022, and one study showed that, in 2021, nearly 80 percent of beer sold in a typical grocery store was produced by four big beer companies: Anheuser-Busch InBev, Molson Coors, Constellation Brands, and Heineken NV.

Local laws may make it difficult for craft breweries to secure distribution. With so many craft breweries now in operation, market saturation is also a factor. If a craft brewery succeeds in growing and gaining traction in the beer market, it is often targeted for acquisition by one of the major beer companies. Goose Island Brewery, for example, once the biggest craft brewery in Chicago, met with much critical and commercial success, including with its coveted Bourbon County Stout line, the first whiskey-barrel aged beer. The brewery’s reputation as a pioneer of the craft beer industry suffered after it was acquired by Anheuser-Busch in 2011 for more than $38 million.

The history of beer brewing dates back thousands of years, to Mesopotamia, Egypt, China, and other places where fermentation was a part of daily life. Beer was an important supplement to a diet and oftentimes safer to drink than potentially contaminated, untreated water. Refinements to the brewing process about the 14th and 15th centuries popularized the use of hops, which could be grown in many climates. Hops eventually became the preferred brewing ingredient, in part because the antimicrobial properties they imparted could extend the shelf life of beers. The domestication of yeast strains also resulted in changes to the brewing process. In 1836 Saccharomyces cerevisiae (from Latin and Greek roots: “sugar fungus” “of beer”), now known as brewer’s yeast, was first classified by a scientist. It is now the most common yeast strain used in brewing.

By the 19th century in the United States, beer brewing was expanding with varied styles, thanks to the arrival of immigrants, who brought novel techniques and ingredients. The temperance movements of the 1800s led to Prohibition, which forced many small brewers out of business. After the repeal of Prohibition in 1933, many breweries never reopened, and a consolidation began to occur. Sales of light, mass-produced lagers dominated the industry by the 1950s. As a reaction against this, the first craft breweries opened in the 1970s. Anchor Brewing in San Francisco, with brewing roots that date to 1849, opened in its modern iteration in 1971. Still, by 1978 fewer than 50 breweries were operating in the United States. That same year U.S. Pres. Jimmy Carter signed H.R. 1337 into law, which legalized home brewing of beer and wine (up to 100 gallons per adult per year tax free) and helped set off the craft brewing revolution.

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Soon, American craft brewers began introducing historical European beer styles, such as the Berliner weisse, hefeweizens, lambics, sours, roasty porters, full-flavoured pilsners, and piney pale ales to consumers. Sierra Nevada Brewing Company, which began as its founder’s home brew experiment, released its flagship pale ale in 1980. In 1984 Jim Koch founded the Boston Beer Company, now one of the largest American craft breweries and known for its flagship brew, Sam Adams. By the 1990s the India pale ale (IPA) movement for which craft beer is most especially known, and sometimes derided, had begun. In the 2020s, this hoppy beer is still the top craft brew in terms of sales.