Texas Craft Breweries Multiply by 990 Percent to Meet Consumer Demand
The number of craft breweries in Texas grew 990 percent in the past 12 years, up from 20 in 2005 to 218 in 2017, according to new research from CBRE.
The driving force behind the craft beer revolution in Texas is microbreweries, which grew by nearly 5,000 percent, up from three in 2005 to 152 in 2017. Brewpubs make up a second segment—with 55 today, this group of restaurant-breweries increased 450 percent.
“Local is the new global—from its cottage roots before the 2008 recession, to its emergence as a niche beer category during the economic recovery, the Texas craft brew industry represents the spirit of this perspective,” said Robert Kramp, Director of Research & Analysis, CBRE.
The rapid growth of craft brewing in the state, both in number of breweries and volume of production, is equally reflected in the amount of commercial real estate space needed to run their operations. Since 2005, the amount of industrial and retail space occupied by craft brewers has grown 265 percent to 4.8 million sq. ft. across the state.
With more than 187,000 barrels brewed last year (the equivalent of 26.3 million bottles), Central Texas was the prominent production hub of Texas craft beer. The DFW and Houston metro areas act as secondary hubs that have buoyed Texas to the third highest economic output for craft breweries in the U.S.
“Not all craft breweries started in the garage. For example, the Shiner, Texas-based Spoetzl Brewery, founded in 1909, dominates Texas beer production. Approximately 70 percent of the 1.1 million barrels of beer produced in Texas in 2016 came from Spoetzle operations,” said Mr. Kramp.
Prominent craft brewing acquisitions, such as MillerCoors’ purchase of DFW-based Revolver Brewing and Anheuser-Busch’s purchase of Houston-based Karbach Brewery in 2016, along with legislative regulations and consumer demand will each play key roles in the future of craft brewing in Texas.