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Have you heard the bad news? Inflation continues to put a damper on everyone in the market, even us in the brewing industry!

Inflation in the beer brewing industry is having a significant impact on craft brewers, as the rising cost of ingredients and other inputs is squeezing profit margins and making it harder for small breweries to compete with larger, established companies.

One major factor driving inflation in the beer industry is the rising cost of barley–the primary ingredient in most beers. An increase in demand for food, biofuels, crop failures, and more have led to a dramatic rise in barley prices in this decade. This has led to higher prices for craft brewers, who often use high-quality, specialty malts that are more expensive than the cheaper, more widely-available options used by larger breweries.

In addition to rising ingredient costs, craft brewers are also facing increased competition from larger companies, which have the resources and economies of scale to absorb the impact of inflation more easily. Many of these larger companies are also using their market power to push down prices, further squeezing the margins of craft brewers.

Another impact of inflation on craft brewers is the increasing costs of labor and utilities, which are also on the rise. Many craft brewers rely heavily on manual labor and have limited resources to automate their process, which makes it harder for them to keep up with rising costs.

Despite these challenges, many craft brewers are finding ways to innovate and adapt to the changing market. Some are focusing on developing new, more affordable products, such as lower-alcohol beers or seasonable styles. Others are turning to alternative ingredients, such as alternative grains or non-grain adjuncts, to reduce costs and diversify their offerings.

Overall, inflation in the beer brewing industry is having a significant impact on craft brewers, but many are finding ways to adapt and innovate in order to stay competitive. The industry is expected to continue to evolve as a result of these challenges, with craft brewers experimenting with new products, ingredients and business models to stay ahead of the curve. We, at the Session, hope all of our readers will be on the cutting-edge, finding innovative ways to beat this inflationary time.

Cheers!

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