FDBusiness.com

Around the world consumer demands for higher quality and greater variety have positively impacted the craft brewing industry. A recent study on the global craft brewing industry, conducted by yeast expert Alltech, discovered that there are more than 10,000 craft breweries worldwide. Of those, 86 percent are in North America and Europe, with Europe pipping North America to the post by only three craft breweries. Even so, the U.S. has just surpassed 4,000 breweries, which represents a nearly 20 percent growth in the last year and far exceeds any other individual country’s count by thousands.

“The rise of craft beer as a beverage of choice is indicative of consumers’ demand for differentiated, interesting and quality products,” says Aidan Connolly, chief innovation officer of Alltech. “Alltech’s history is rooted as a supplier of yeast not only to the animal nutrition industry but also to the beverage industry. In the last number of years consumers have developed more discerning tastes resulting in a switch from the big beer brands to those with a distinctive taste and a story to tell. This change in consumer sentiment and demand has obviously driven the big beer brands, like AB InBev and SABMiller, to join ranks.”

“Craft beer has two percent of the market share in Ireland today, and it is predicted to rise, with a year-over-year growth of approximately 25 percent, and new local breweries mushrooming all over the country,” adds Aidan Connolly.

The Global Craft Beer Survey assessed the number of craft breweries through information obtained in partnership with local beverage associations and Alltech’s sales force, which operates in 128 countries. The top 10 locations for craft breweries in the world are: the United States, the United Kingdom, France, Italy, Russia, Canada, Switzerland, Germany, Brazil and Japan.

Ireland ranks 20th in the locations for craft breweries globally. Irish craft beer is currently exported to 25 countries, with approximately 38 percent of Irish breweries in the business of exportation.

Aidan Connolly continues: “It is fascinating to compare the number of craft breweries in each country to that of its population. When it comes to craft breweries per head, Switzerland is 39th in terms of top craft beer producing nations yet it ranks number one by breweries/population with close to five craft breweries per 100,000 people. In yet another twist, while it has more breweries per head, surprisingly beer is not cheap. Zürich, its most populous city, is ranked number two as the most expensive city to buy beer.”

The Global Craft Beer Survey raises some questions in regard to other regions of the world and their uptake of the craft brewing phenomenon. For example, China and India rank among the top ten countries for population and GDP yet neither country has more than 60 craft breweries. Given that China rivals the U.S. as beer drinkers with close to a doubling in terms of consumption, will there be a brewery boom in the country’s future?

Overall, Aidan Connolly estimates the craft beer industry’s net worth at $50 billion.

The findings of this inaugural Global Craft Beer Survey were released as Alltech confirmed the details of the fourth Alltech Craft Brews and Food Fair, which will take place in the Convention Centre, Dublin, February 5–7, 2016. The Fair will host more than 60 Irish and international breweries and distilleries, and exhibitor space is already almost completely sold out. Tickets will be on sale via Tickets.ie at the end of this month.

This is Alltech’s first global survey of the craft brewing industry. It was undertaken at the request of founder and president Dr Pearse Lyons for the company’s own information because data assessing the international craft brewing market was not readily available. Born and raised in Dundalk, County Louth, Ireland, Dr Lyons hails from five generations of coopers who supplied barrels to distilleries in Ireland for a quarter of a century. Dr Lyons went on to become the first Irishman to achieve a formal degree in brewing and distilling from the British School of Malting and Brewing. While at university, he interned at both the Guinness and Harp Lager breweries and later worked as a biochemist for Irish Distillers, makers of the beloved Jameson whiskey. In the U.S., he founded biotechnology company Alltech and acquired his own brewery, which today is the Lexington Brewing and Distilling Co., the maker of award-winning barrel-aged beers and spirits.

For further information, including ticket details, on the Alltech Craft Brews and Food Fair please visit eu.alltechbrewsandfood.com.

CAPTION:

Alltech has confirmed the details of the fourth Alltech Craft Brews and Food Fair, which will take place in the Convention Centre, Dublin, February 5–7, 2016. Pictured from left to right: David O’Hare, Bru Brewery, who will be exhibiting at the Fair; Natalia Lynch, national sales manager for Lexington Brewing & Distilling Co; and Dr Gearoid Cahill, European director of brewing science at Alltech.