In this article, we are going to discuss the 20 states that produce the most craft beer. You can skip our detailed analysis of the rising popularity of craft beer in the U.S., the end of an era in American craft brewing, and the various unholy alliances in the craft industry, and go directly to 5 States that Produce the Most Craft Beer.
Although the art of brewing has been around since ancient times, the modern-day craft beer trend began in the 1960’s in the United States, when Fritz Maytag bought the Anchor Brewing Company in San Francisco. He decided to improve the quality of beer using new brewing techniques, leading to the introduction of the handcrafted Anchor Porter in 1972, and Liberty Ale and Christmas Ale in 1975, thus starting a craft beer revolution.
The Rising Popularity of Craft Beer:
The United States is the country that produces the most craft beer in the world. As we mentioned in our article – 20 States with the Most Craft Breweries – , there were 9,552 craft breweries, brewpubs, and taprooms in the U.S. in 2022, up almost 99% from 2015. Meanwhile, retail dollar sales of craft increased 5%, to $28.4 billion, and now account for 24.6% of the $115 billion overall U.S. beer market.
The principle strength of craft brewing lies in its vast array of beer innovations to reflect the shift of today’s consumers, as it offers its customers ‘something different’ from what they’re normally used to. Craft lovers are willing to pay a little more for beer that holds more taste, flavor, variety, and alcohol. The quality ingredients and delicious tastes that craft beers offer are not usually found in their mass-produced counterparts. Moreover, drinking craft is also a way to support your local businesses.
The End of an Era:
Anchor Brewing, the first and oldest craft brewery in America which started in San Francisco in 1896, announced last month that it would permanently end its operations after it struggled financially as a result of a competitive market, inflation, and declining sales, particularly after the iconic brand’s $85 million acquisition by the Japanese beer distributor, Sapporo, in 2017.
During the pandemic, the ‘Grandfather of American Craft Brewing’ rebranded and sold its products in grocery stores. But in June this year, the company limited its distribution to the state of California and ceased making its popular Christmas ale after almost 50 years.
The disgruntled former employees of Anchor blame its Japanese parent company for their beloved brewery’s decline. The workers describe a string of errors committed by Sapporo in running the California-based brewery – the executives postponed necessary plant maintenance, fought workers’ successful union drive in 2019 and stalled on the follow-up (and eventually successful) contract negotiations this year, and demonstrated an ‘extremely novice’ grasp of Anchor’s brewing cycle.
However, Sapporo USA’s biggest single mistake while running Anchor was the rebrand. The brewery rolled out a new look for Anchor’s packaging and logo in 2021, apparently designed to bolster the brand’s since-discarded national sales strategy. This move proved to be a disaster, with potential customers throwing a fit on social media.
Anchor’s demise represents the wider economic challenges craft brewers face in the years since the pandemic when consumer habits have changed and sales have suffered across the industry, leading to smaller breweries acquired by major beer corporations to rebrand, or to cease operations altogether.
Last year, Sapporo also announced the acquisition of California-based Stone Brewing Co. for $165 million.
Unholy Alliances:
Anchor’s case, though extremely sad, is not unique in the current craft brewing scenario of the country. Several large beer makers have tried their luck at the craft trend by investing heavily and acquiring some very popular local breweries, but these alliances have not always gone to plan.
Craft breweries have a connection with the communities they serve that’s unique to the industry, and so the entry of major corporations in the sector has not been well-received by craft lovers, who prefer to keep their community intimate and authentic. Devotees of craft beers also worry that such mass-producing corporations will tamper with the recipes of their favorite tipples.
Constellation Brands, Inc. (NYSE:STZ) bought Ballast Point Brewing in 2016 for $1 billion, at the absolute peak of the craft brewery acquisition craze. Only a few years later, the Fortune-500 industry giant sold the Ballast Point brand to Illinois-based Kings and Convicts Brewing Co. for something around $40 million. It was also revealed in May this year that Constellation Brands, Inc. (NYSE:STZ) is now re-selling the famous Funky Buddha Brewery back to its original founders, a news warmly welcomed by craft beer enthusiasts around the country. Constellation Brands, Inc. (NYSE:STZ) made headlines this summer when its Mexican beer brand, Modelo Especial, became the Top-Selling Beer in America after dethroning Bud Light.
Similarly, Anheuser-Busch InBev SA/NV (NYSE:BUD) also announced to offload several of its craft beer brands earlier this month, as it was looking to focus its efforts on fewer brands. Tilray Brands, Inc. (NASDAQ:TLRY) – a craft beer and cannabis company that was among the first to be licensed for medical cannabis in Canada – has announced earlier this month that it has agreed to acquire eight beer and beverage brands from Anheuser-Busch InBev SA/NV (NYSE:BUD) for an undisclosed amount.
The deal includes the Shock Top, Blue Point, 10 Barrel, Breckenridge, Redhook, Widmer Brothers, Square Mile Cider, and HiBall Energy brands. Upon satisfaction of customary closing conditions, Tilray Brands, Inc. (NASDAQ:TLRY) will become the fifth-largest craft brewer in the U.S. with a 5% market share.
Tilray Brands, Inc. (NASDAQ:TLRY) already owns multiple beverage brands and is also among the Biggest Marijuana Companies in the World.
With that said, here are the States that Produce the Most Craft Beer.
Valentyn Volkov/Shutterstock.com
Methodology:
To collect data for this article, we have referred to the State Craft Beer Sales and Production Statistics 2022 by the Brewers Association, looking for the U.S. States that Produce the Most Craft Beer. We have ranked the following states by the number of barrels (bbls) of craft beer they produced in 2022. A barrel of beer in the United States is 31 gallons.
20. Vermont
Craft Beer Produced in 2022: 324,505 bbls
With 15.6 breweries per 100,000 21+ adults, Vermont is the state with the most craft breweries per capita in the United States. The 78 breweries in the Green Mountain State produced over 324,000 barrels of beer in 2022, or 20.1 gallons per every 21+ adult – the most for any state in America.
19. Michigan
Craft Beer Produced in 2022: 324,975 bbls
Michigan is home to some of the Oldest Craft Breweries in America, pumping out quality beer month after month. Founders and Bell’s are by far the most well-known and largest of the Michigan breweries. Bell’s Brewery was acquired by Kirin-owned Lion World Beverages for an undisclosed price in 2021.
18. Missouri
Craft Beer Produced in 2022: 349,019 bbls
Missouri is home to Kansas City, a city that was quite literally built on beer, so it comes as no surprise that the Midwestern state has such a bustling craft scene. The highly-decorated Perennial Artisan Brewery of St. Louis specializes in premium craft beer production.
17. Maine
Craft Beer Produced in 2022: 376,702 bbls
The craft trend is getting increasingly popular in Maine, with 117 new breweries popping up in the state since 2012. Allagash Brewing Company is a popular brewery in the Pine Tree State.
One of the oldest and best American breweries focusing on Belgian styles, Allagash’s claim to fame is its phenomenal witbier.
16. Illinois
Craft Beer Produced in 2022: 426,862 bbls
The 302 craft breweries in Illinois had an overall economic impact of $2.81 billion in the Prairie State last year. Revolution is the largest craft brewery in Illinois, operating a bustling brewpub and a 90,000 square foot production facility.
15. Virginia
Craft Beer Produced in 2022: 460,315 bbls
A popular brewery in Virginia is Devils Backbone, popular for its Vienna Lager and other hearty brews. Established in 2008, the Roseland-based craft brewery was eventually acquired by the brewing giant Anheuser-Busch InBev SA/NV (NYSE:BUD) in 2016 for an undisclosed amount. Virginia ranks 15th in our List of States that Produce the Most Craft Beer.
14. Massachusetts
Craft Beer Produced in 2022: 493,365 bbls
Massachusetts is home to the largest microbrewery in the world – The Boston Beer Company, Inc. (NYSE:SAM). Now the fourth-largest brewer in the U.S. with a revenue of over $2 billion in 2022, The Boston Beer Company, Inc. (NYSE:SAM) helped start a craft beer revolution with its Samuel Adams Boston Lager. Samuel Adams had dollar sales of $219.8 million in U.S. multi-outlets in 2022.
Stock price of The Boston Beer Company, Inc. (NYSE:SAM) also reported a YTD increase of 10.82% as of August 28th.
13. Georgia
Craft Beer Produced in 2022: 558,362 bbls
Georgia witnessed quite the craft revolution over the last decade, with 149 new breweries opening up in the last ten years. The Tropicália by Creature Comforts is an extremely sought-after beer and ranks among the Best Craft Beer Brands in America.
12. Washington
Craft Beer Produced in 2022: 577,730 bbls
Washington is the second-largest hop growing region in the world, so you know the beer is as fresh as it comes. The Yakima Valley represents approximately 75% of the total U.S. hop acreage, accounting for over 77% of the country’s entire crop. Fremont Brewing is a popular brewery from the Evergreen State. Washington ranks among the Largest Craft Beer Producing States in the U.S.
11. Minnesota
Craft Beer Produced in 2022: 594,606 bbls
By every measure, the craft beer industry in Minnesota is booming compared to a decade ago. However, breweries in the Land of 10,000 Lakes have had a very tough time over the last couple of years, with several of them calling it a day.
One of Minnesota’s largest craft brewers, Tin Whiskers, announced its closure last year, with a prediction from the owner that the craft beer industry is a bubble in the midst of a burst.
10. Colorado
Craft Beer Produced in 2022: 834,006 bbls
Colorado is likely one of the best states for craft beer, since craft has been a thing there for decades. There are 440 breweries in the Centennial State with a total economic impact of $2.42 billion.
Colorado-based Ceria Brewing Co. became a pioneer of marijuana infused beverages when it debuted its first THC beer in 2018. Colorado ranks among states where craft beer is most popular.
9. Oregon
Craft Beer Produced in 2022: 867,236 bbls
With over 300 breweries and brew pubs, Oregon is considered the best beer state in the union and the craft beer capital of the west. In fact, beer is so highly regarded in the Beaver State that you can study fermentation science at Oregon State University, or get a certificate in the business of craft beer from Portland State University.
Oregon sits among the top 10 states that produce the most craft beer.
8. North Carolina
Craft Beer Produced in 2022: 898,929 bbls
Craft beer has an economic impact of $2.1 billion per year and creates 18,000 jobs in North Carolina. This is due to the more than 400 craft breweries present in the Old North State.
Burial Beer Company is a popular craft maker in North Carolina.
7. Wisconsin
Craft Beer Produced in 2022: 1,078,665 bbls
Breweries and Wisconsin go hand in hand and the state is known far and wide for its delicious beers and passionate brewing culture. The Minhas Craft Brewery is a popular name in the town of Monroe. Family-owned since 1845, the brewery has survived the Great Depression, the Prohibition, brushes with the mob, and even two major fires. The 5% ABV Boxer Lager is a top-selling craft beer by Minhas.
6. Ohio
Craft Beer Produced in 2022: 1,286,829 bbls
Ohio saw 344 new craft breweries opening up since 2012, producing over 1.2 million barrels of beer in 2022. The Cleveland-based Platform Brewing Co. was also acquired by Anheuser-Busch InBev SA/NV (NYSE:BUD) in 2019. The Midwest is the region with the most craft breweries in the U.S. Ohio ranks 6th among U.S. States that Produce the Most Craft Beer.
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Disclosure: None. 20 States that Produce the Most Craft Beer is originally published on Insider Monkey.