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The popularity of the craft brewery industry and microbreweries has seemingly exploded over the last few years and is considered an integral part of American culture. In 2020, the industry was estimated to be worth around<a href="https://www.fortunebusinessinsights.com/industry-reports/craft-beer-market-100736?utm_source=1851franchise.com&utm_medium=article&utm_campaign=current-trends-and-challenges-of-owning-a-craft-brewery-in-2023-2724208" target="_blank" rel="nofollow">&nbsp;$95.23 billion</a> and it’s only expected to grow, with experts predicting it will reach $210.78 billion by 2028.With that popularity, ambitious beer-loving entrepreneurs are looking to get in on the hoppy action and more individuals are opening their own craft breweries. In fact, in 2022, the number of craft breweries in the U.S. hit an<a href="https://www.brewersassociation.org/press-releases/brewers-association-releases-annual-craft-brewing-industry-production-report-and-top-50-producing-craft-brewing-companies-for-2022/?utm_source=1851franchise.com&utm_medium=article&utm_campaign=current-trends-and-challenges-of-owning-a-craft-brewery-in-2023-2724208" target="_blank" rel="nofollow">&nbsp;all-time high of 9,552</a>. And the industry has expanded beyond local brewpubs, it has also paved the way for franchise opportunities. Established breweries like<a href="https://voodoofranchising.com/?utm_source=1851franchise.com&utm_medium=article&utm_campaign=current-trends-and-challenges-of-owning-a-craft-brewery-in-2023-2724208" target="_blank" rel="nofollow">&nbsp;Voodoo Brewing</a>,<a href="https://www.wobfranchising.com/?utm_source=1851franchise.com&utm_medium=article&utm_campaign=current-trends-and-challenges-of-owning-a-craft-brewery-in-2023-2724208" target="_blank" rel="nofollow">&nbsp;World of Beer</a> and<a href="https://1851franchise.com/brasstap/charleston-residents-and-industry-veterans-bringing-the-first-the-brass-tap-to-charleston-2722393">&nbsp;The Brass Tap</a> are just some examples of brands that have capitalized on this trend and are now offering lucrative franchise opportunities.<h2>Current Taste of the Industry</h2>But what is it actually like operating a craft brewery in this booming industry?<a href="https://1851franchise.com/brasstap/charleston-residents-and-industry-veterans-bringing-the-first-the-brass-tap-to-charleston-2722393">Matthew Luciano and Crystal Coslop</a> are the franchise owners of<a href="https://thebrasstapfranchise.com/Default.aspx?utm_source=1851franchise.com&utm_medium=article&utm_campaign=current-trends-and-challenges-of-owning-a-craft-brewery-in-2023-2724208" target="_blank" rel="nofollow">&nbsp;The Brass Tap</a> in Charleston, South Carolina. The pair have been around the bar industry throughout their lives and have always dreamed of business ownership. Luciano believes that operating a brewery is more than a business venture; it’s a passionate endeavor and a creative outlet. While breweries are a place to satisfy the taste buds of beer enthusiasts, he believes breweries also serve as community gathering sports and social hubs where people come together to share moments, laughter and camaraderie.“That’s what attracted me to Brass Tap — their focus on community,”<a href="https://charlestonbusiness.com/news/hospitality-and-tourism/83447/?utm_source=1851franchise.com&utm_medium=article&utm_campaign=current-trends-and-challenges-of-owning-a-craft-brewery-in-2023-2724208" target="_blank" rel="nofollow">&nbsp;said Luciano</a>. “They aren’t a large corporation, and they don’t micromanage. We’re going to be able to exercise our creativity and hold charity events to give back. Our goal is to stay as local as possible — to keep it in the neighborhood.”However, the journey to success as a craft brewery owner is not an easy one. As<a href="https://www.linkedin.com/in/bart-watson-09255a36/?utm_source=1851franchise.com&utm_medium=article&utm_campaign=current-trends-and-challenges-of-owning-a-craft-brewery-in-2023-2724208" target="_blank" rel="nofollow">&nbsp;Bart Watson</a>, the chief economist at the&nbsp;<a href="https://www.brewersassociation.org/?utm_source=1851franchise.com&utm_medium=article&utm_campaign=current-trends-and-challenges-of-owning-a-craft-brewery-in-2023-2724208" target="_blank" rel="nofollow">Brewers Association</a> pointed out, brewers have to navigate a wide range of complexities in order to be successful.“2022 presented small brewers with a number of challenges, including rising operating and material costs and increasing competition, particularly in distribution,”<a href="https://www.brewersassociation.org/press-releases/brewers-association-releases-annual-craft-brewing-industry-production-report-and-top-50-producing-craft-brewing-companies-for-2022/?utm_source=1851franchise.com&utm_medium=article&utm_campaign=current-trends-and-challenges-of-owning-a-craft-brewery-in-2023-2724208" target="_blank" rel="nofollow">&nbsp;said Watson</a>. “In this maturing and competitive market, collective growth for the category is hard to come by.”That sentiment is echoed by<a href="https://www.linkedin.com/in/lucasgoucher/?utm_source=1851franchise.com&utm_medium=article&utm_campaign=current-trends-and-challenges-of-owning-a-craft-brewery-in-2023-2724208" target="_blank" rel="nofollow">&nbsp;Luke Goucher</a>, a managing partner at<a href="https://www.illinoiscrafted.com/?utm_source=1851franchise.com&utm_medium=article&utm_campaign=current-trends-and-challenges-of-owning-a-craft-brewery-in-2023-2724208" target="_blank" rel="nofollow">&nbsp;Illinois Crafted</a>, who believes the biggest challenge brewers face is keeping prices low while the cost of ingredients, labor and taxes are all rising considerably.“Owners are being asked to do more with less,” said Goucher. “To overcome this, we need to keep reinventing and developing innovative flavors to continue to show our creativity and pique our customers’ interest to drive future purchases.”With rising costs and such fierce competition, the industry demands owners who are resilient and adaptive. According to Goucher, craft brewers also have to find a balance between tradition and innovation when it comes to introducing new brews.“IPAs continue to be a leading flavor among customers,” said Goucher in regard to India Pale Ales. “Customers always love traditional styles and flavors, but also are looking for breweries and brewmasters to continue to push the boundaries and creativity when it comes to developing new, innovative flavors.”<h2>Advice to Aspiring Brewers</h2>For aspiring entrepreneurs considering venturing into the craft brewery industry, Goucher said it’s important to “stay nimble, be creative and take chances.” Regardless of whether you operate an independent brewery or a franchise, the craft beer industry demands a significant investment in terms of both time and capital. Above all else, Goucher emphasized that brewery owners must be dedicated and have a passion for the field.“Craft beer is an exciting industry to operate in and will continue to have a place in American culture for a long time,” he said. “You’ve got to love it. It’s an industry that rewards passion, and profit will come in time.”&nbsp; &nbsp;

Current Trends and Challenges of Owning a Craft Brewery in 2023

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Despite the rising costs of ingredients, labor and taxes, the craft brewery industry remains highly popular. In 2022, it experienced a record number of new brewery openings. 


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