ST. LOUIS _ For the fifth-straight year, the number of new American craft breweries reached new heights. So, too, did the number of craft breweries that closed, sparking concern with analysts that craft may have peaked with consumers.
Bart Watson, chief economist for the Brewers Association, which published its annual small and independent growth statistics at the end of March, said the trend isn't too worrisome.
"I think it's a natural function of a maturing industry," said Bart Watson, chief economist for the Brewers Association, which released its annual small and independent brewers growth statistics recently. "The era of when no one closed is the anomaly. In any other market, the idea that every business can be successful is not sustainable in the long run. I think we're moving toward a more mature market where I'd expect to see a larger percentage of closures, particularly when there are more breweries each year."
According to the Brewers Association data, 997 new craft breweries opened last year while 165 closed (or nearly 3 percent of all breweries that were in operation). That's compared to 826 openings and 97 closings (or about 2 percent of all operating breweries) in 2016.
Year-over-year, craft beer volume grew 5 percent to 25.4 million barrels while craft retail sales grew 8 percent to $26 billion.
Missouri craft breweries, many of which are located in the St. Louis region, produced nearly 370,000 barrels of beer in 2016, the latest data available from the Brewers Association on a state-by-state basis.
Watson said increased competition for distribution channels gave craft brewers with broad distribution strategies with pressure.
Locally, several craft brewery officials, including those with Schlafly and 4 Hands, have said they plan on focusing more on the St. Louis market as opposed to expanding into new geographic territories.
Many St. Louis craft brewers are grappling with how to compete amid a growth boom, both locally and nationally. Many brewers are expanding facilities to increase production or introducing new beers to appeal to consumers.
