Economics of the Craft Beer Revolution: A Comparative International Perspective

This paper summarizes key insights that derive from a comparative analysis of the craft beer developments and the beer industry transformation in the various countries. Our paper starts with a discussion on the definition of craft beer (and microbreweries). First, we document when the craft beer movements started in the various countries, and how they have evolved. Then, we discuss the role of changes in demand, the role of pioneers in craft brewing, and what factors determined the re-emergence of small brewers. Some of the factors we discuss refer to the role of information, networks, regulation, capital, and technology markets. The last part of the paper concentrates on the reaction of the macro-brewers to the growth of the craft beer market.