As one of the most popular beverages worldwide, the beer niche market is among the biggest in the beverage industry. In the past decade, there have been significant changes in this sector due to the craft beer revolution. The number of breweries in the US has doubled in the past decade due to the increased demand for craft beer of different styles. Many business owners in the food service sector have benefited from the shifts in the beer industry by creating elaborate craft beer menus. Even though the beer market has become very competitive, there is still room for growth. In this post, we’ll share some beer business ideas and how to grow an already-established company in this sector. If this topic interests you, you may find our posts on proper beer storage and the different types of beer software useful.
Key takeaway: Beer businesses are profitable and have good profit margins. The craft beer revolution has helped the sector’s growth in the past decade. Beer businesses have multiple opportunities to expand horizontally and vertically.
Beer Business Ideas
Although most people associate a beer business with a brewery, there are other types of beer-oriented businesses one can explore. Here are a few common beer business ideas.
- Start a brewery. As already mentioned, this is one of the most popular beer-oriented businesses. Nano and microbreweries have good profit margins. Furthermore, the growing number of beer enthusiasts has made craft beers high-demand products. Check out our full post on how to start a brewery.
- Open a beer bar. Taprooms and brewpubs are the two most common types of beer bars. The former focuses primarily on serving different types of beer from multiple breweries. The latter is part of the broad restaurant industry.
- Wholesale sales of beer. Although a lot of businesses prefer to partner with broadline distributors, working with suppliers who specialize in beer and spirits has its benefits. These wholesalers are knowledgeable about the different types of beer and can consult businesses regarding engineering beverage menus. Read our post about beer distributors.
- Beer online store. In addition to D2C sales of beer, these stores can also offer merchandise, accessories, glassware, gifts for beer enthusiasts, DIY beer sets, and various other products. Keep in mind that there are strict regulations regarding sales and shipments of beer and other alcoholic beverages.
- Beer events. The craft beer revolution and the increased popularity of beer mean you can start a business that focuses on beer-related events. For example, you can partner with breweries and organize brewing workshops. Guided tastings or beer and food pairing events can be organized in restaurants or commissary kitchens.
- Beer influencer. Platforms like YouTube and TikTok have made it possible for hobbyists to monetize their content. Creating content on topics like brewing, beer history, and reviews of different beers can be a profitable side hustle. Once your channels grow, you can attract sponsorship and collaborations with brands. A beer influencer can also launch a beer brand by partnering with contract brewing and private-label beer manufacturers.
How to Grow a Beer Business
Depending on the type of beer business you operate, there are different ways to grow it. For example, a brewery can grow into the food service sector by opening a brewpub. On the other hand, a beer online store can increase revenue by offering subscriptions and creating (and monetizing) content on social media platforms. Whatever the type of beer business you operate, make sure to invest in marketing and advertising. Analyze where your audience is and what type of content works best for your products or services in order to achieve high ROI. In addition to beer marketing, automation can also help grow your business. Making operations more efficient improves profit margins and allows companies to grow more rapidly. One of the problems for breweries is that there’s a very high demand in the sector. This means that capacity expansion is one of the best ways to grow a beer business. This can be done by steady investments in infrastructure or by buying out smaller competitors, which is a much riskier approach.
Businesses in the food and beverage industry have multiple options to diversify their revenue streams. A beer business can explore multiple ideas for products and services. The beer business ideas mentioned above can all be combined.
Trends in the Beer Market
The growth of the craft beer sector has been the biggest trend in the beer industry. Restaurant managers have adapted to it by creating craft beer menus. A lot of nano and microbreweries also experiment with different flavors. This has led to the introduction of craft beers infused with fruits, spices, coffee, and even CBD.
Another trend that can be observed in the beer market is the increased emphasis on low-alcohol and health-conscious products. Low-calorie brews have grown their market share among beer enthusiasts. The same is true for non-alcoholic beers or alternatives like hard seltzer and hard kombucha.
Sustainability is also a trend in this sector. Breweries aim to make their operations more environmentally friendly. This can be seen in various aspects, from packaging to reduction of water usage.
Frequently Asked Questions about Beer Businesses
Whether you’re interested in resources on vendor-managed inventory or the latest trends in restaurant marketing, you can find them on BlueCart’s website. Check out our answers to a few commonly asked questions regarding beer businesses.
Are Beer Businesses Profitable?
Yes. Operating a beer business can be very profitable. The profit margin for beer is roughly 40%. However, premium types of craft beer, especially the ones made in small batches, can be sold at a much higher profit margin. Thanks to the craft beer revolution, a growing number of beer enthusiasts wish to try new styles and flavors. Thus, breweries and other beer businesses can increase prices due to the limited supply and the high demand for craft beer. In addition to the good profit margins of beer businesses, they can benefit from selling on eCommerce platforms and offering additional products like merchandise.
Is the Beer Market in Decline?
Although a growing number of food service businesses have introduced craft beer menus, the overall market has seen a small decline in the past two years. That can be seen in both the number of operating breweries and the volume of beer produced. The main reason for this has been the supply chain disruptions of 2022 and the economic uncertainty in the manufacturing sector. Furthermore, as the beer sector is already a very competitive and mature market, large annual growth is unlikely. Another reason for the decline can be the increased health consciousness among many consumers.
What Companies Can Beer Businesses Partner With?
Breweries, craft beer stores, and other beer businesses can partner with a wide range of to improve their sales. Here are a few ideas for partnerships.
- Local sports clubs and amateur leagues;
- Chefs, bartenders, and other experts who can use different types of beer for dish or cocktail recipes;
- Local or nationwide celebrities who can increase the brand awareness of your beer business;
- Micro and nano influencers (read more about influencer marketing) who enjoy beer or have an audience that fits your target;
- Brands that focus on the female audience can offer “for her and for him” bundles.
BlueCart: Software for Beer Businesses and Other Entrepreneurs
BlueCart is one of the best solutions for wholesale distribution companies. As such, it can be used by breweries, sellers of different types of grains, and various other distributors who focus on B2B sales. Wholesale buyers can also use BlueCart’s marketplace to find suppliers and compare prices. BlueCart’s inventory management features make it a practical solution for restaurants, cafes, retailers, and other businesses. Schedule a demo and see how our wholesale ordering software can help your business grow and automate certain processes.