In this article, we are going to discuss the 20 states with the most craft breweries. You can skip our detailed analysis of the rising popularity of craft beer, the Great American Beer Festival, the profitability of craft brewing, acquisitions in the craft beer industry, and the state with the most craft breweries per capita, and go directly to 5 States with the Most Craft Breweries.
For centuries, beer has been a conduit for bringing people together. As the craft beer industry has grown in the United States, a community of beer enthusiasts and professionals has grown around it.
The Rising Popularity of Craft Beer:
According to data from the Brewers Association, 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 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 mass-produced beers. Moreover, drinking craft is also a way to support your local businesses.
The Great American Beer Festival:
The Great American Beer Festival represents the largest collection of U.S. beer ever served, in the format of a public tasting event plus a privately judged competition. Organized every year by the Brewers Association, the GABF unites beer lovers and brewers from across the country to celebrate the nation’s ever-growing craft beer culture. During the three-day festival last year, a total of 40,000 beer lovers contributed an estimated $15.2 million to the Denver economy.
The Profitability of Craft Brewing:
Compared to similar business models such as a restaurant or a bar, breweries are often extremely profitable. The average profit margin for breweries is typically around 20%, and according to Beverage Trade Network, a ‘good’ profit margin for a brewery is around 25% or higher.
However, a brewery also needs a lot more investment in its machinery and personnel than a bar or a restaurant, and simple maintenance costs can also vary greatly. Breweries take a lot of cash up front, and they also have to reinvest the money year on year to keep up with the growth and demand, which means that the 20% profit is often largely reinvested back in the business.
Acquisitions in the Craft Beer Industry:
One way for craft brewers to achieve a big pay day is by simply cashing out. Major industry players like Anheuser-Busch InBev SA/NV (NYSE:BUD) and Constellation Brands, Inc. (NYSE:STZ) have paid close attention to the rising popularity of the craft trend and have invested heavily into acquiring several regional breweries. The blockbuster deal last year was Japanese giant Sapporo’s $165 million acquisition of California-based Stone Brewing.
However, these alliances have not always worked out. The entry of major corporations in the craft beer 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.
To cite a few examples, Constellation Brands, Inc. (NYSE:STZ), which owns some of the Top-Selling Beers in America, 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 Funky Buddha Brewery back to its original founders, a news warmly welcomed by craft beer enthusiasts around the country.
It was announced earlier this month that Anchor Brewing – America’s oldest craft brewer – is shutting down after 127 years in business. Anchor was acquired by Sapporo for $85 million in 2017, however, due to the Japanese company’s alleged mismanagement and lack of understanding of craft beer in the U.S., an industry icon is now ceasing operations and liquidating its beloved business.
20 States with the Most Craft Breweries
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Methodology:
To collect data for this article, we have referred to the State Craft Beer Sales and Production Statistics 2022 of the Brewers Association, looking for the States with the Highest Number of Craft Breweries. When two states had the same total number of craft breweries, we ranked them by their number of craft breweries per capita.
The craft trend is getting increasingly popular in Maine, with 117 new craft breweries popping up in the state since 2012. Allagash Brewing Company is a popular brewery in the Pine Tree State.
19. Missouri
Number of Craft Breweries in 2022: 163
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.
18. Georgia
Number of Craft Breweries in 2022: 171
Georgia witnessed quite the craft revolution over the last decade, with 149 new breweries opening up in the last ten years. These craft breweries had an economic impact of $1.92 billion in the Peach State in 2022, according to data from the Brewers Association.
17. Indiana
Number of Craft Breweries in 2022: 197
The Sun King Brewery is the largest craft production facility in the state of Indiana, with several award-winning brews including the Afternoon Delight, which is crafted through a process of wood barrel aging. The brewery has become an entertainment hub in the city of Indianapolis.
16. Massachusetts
Number of Craft Breweries in 2022: 203
Massachusetts is home to The Boston Beer Company, Inc. (NYSE:SAM), which is among the Largest Craft Brewers in America. 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.
Introduced in 1984, Jim Koch, the founder of The Boston Beer Company, Inc. (NYSE:SAM), first brewed the Boston Lager in his kitchen - a recipe that belonged to his great great grandfather. Samuel Adams had dollar sales of $219.8 million in U.S. multi-outlets in 2022.
15. Minnesota
Number of Craft Breweries in 2022: 233
Minnesota also witnessed a 396% increase in its number of craft breweries since 2012. Surly is a popular craft maker producing some very captivating beers in the Land of 10,000 Lakes, including Todd the Axe Man. With 233 craft breweries, Minnesota ranks 15th in our list of States with the Most Craft Breweries in the U.S.
14. Wisconsin
Number of Craft Breweries in 2022: 249
Breweries and Wisconsin go hand in hand and the state is known far and wide for its delicious beers and passionate brewing culture. Milwaukee-based Lakefront is a top-rated brewery on TripAdvisor.
13. Illinois
Number of Craft Breweries in 2022: 302
Revolution is the largest craft brewery in Illinois, operating a bustling brewpub and a 90,000 square foot production facility. Revolution Brewing had total production of 73,000 barrels in 2021.
12. Oregon
Number of Craft Breweries in 2022: 318
There were 318 craft breweries in Oregon in 2022. The state’s first brewery opened back in 1854, when Oregon wasn’t even a state yet, and the scene has flourished since then. 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. With 18 breweries per 50,000 people, Portland is the city with the most craft breweries per capita.
11. Virginia
Number of Craft Breweries in 2022: 344
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.
10. North Carolina
Number of Craft Breweries in 2022: 392
321 new craft breweries opened up in North Carolina over the last ten years, with an economic impact of $2.1 billion in 2022. Burial Beer Company is a popular craft maker in the southeastern state. North Carolina is among the Top 10 States With the Most Craft Breweries.
9. Florida
Number of Craft Breweries in 2022: 396
Although the 5.2% ABV Euro Pale Lager Stella Artois is the king of beers in the Sunshine State, Florida also has a very lively craft beer scene. Funky Buddha and Cigar City Brewing are some of the popular names in the Florida craft beer market.
8. Ohio
Number of Craft Breweries in 2022: 402
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.
7. Texas
Number of Craft Breweries in 2022: 407
The 407 craft breweries had a total economic impact of $4.5 billion in the Lone Star State. With 323 new craft makers popping up over the last 10 years, Texas has become a top destination for craft beer lovers all over the country.
6. Michigan
Number of Craft Breweries in 2022: 407
Michigan is home to some of the oldest craft breweries in the country, 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. The Great Lake State ranks 6th in our list of states with the most craft breweries.
