The locational determinants of micro-breweries and brewpubs in the United States

Abstract

In recent decades the American craft beer industry has experienced impressive growth. Between 1980 and 2013, the number of craft breweries in the US increased from 8 to 2,768. This growth is reflected in increased market share. In terms of production volume, in 2013 craft brewers had a 7.8% share of the US beer market as compared with only 2.6% in 1998. The craft segment’s penetration of the US beer market is even more impressive when viewed in terms of dollar sales. In 2005, craft breweries accounted for 5.4% of US beer sales. By 2013, this share stood at 14.3%. From the perspective of economic impact it has been estimated that the craft-brewing industry contributed $33.9 billion to the US economy in 2012 and was responsible for more than 360,000 jobs (Brewers Association, 2014c). Some communities are hoping to capitalize on growing consumer interest in craft beer by incorporating micro-breweries and brewpubs into their plans for community and neighbourhood revitalization (Weiler, 2000) while the potential economic benefits of beer tourism are being increasingly recognized (Plummer et al., 2005).