New York City’s Craft Beer Industry Grapples with Growing Pains
New York City’s craft beer industry, once thriving, is now grappling with the growing pains of rapid expansion. Rising rents, high labor costs, and intense competition are forcing some breweries to close, cut costs, or at least look for creative ways to broaden their appeal as the initial novelty of craft beer has waned.
The Boom is Over
The craft boom, which experts say occurred around 2016 or 2017, led to rapid growth: nationwide, the number of breweries more than doubled between 2015 and 2023, per the New York State Brewers Association. In New York State alone, the number of breweries surged from 95 in 2012 to 535 in 2023, according to the Association.
Breweries’ Changing Reality
In the post-pandemic economy, some local brewers have found it best to combine forces. Gun Hill Brewing, for instance, closed its Bronx tap room and production facility in May but kept its Brooklyn location in Industry City, Gun Hill Publick House, where neighborhood foot traffic was more reliable.
Still Going Strong
Despite the challenges affecting all small businesses, some local breweries that arrived relatively early on the scene are doing better than ever today. The owners of Grimm Artisanal Ales in Williamsburg, Brooklyn, say their business has seen slow but steady growth since it opened in 2012. For Joe and Lauren Grimm, their success has come from controlling every aspect of the operation, from recipes to equipment to the layout of the building they now own.
Wearing Many Hats
Rockaway Brewing Co. was also founded in 2012 and has a tap room, small event space, and production brewery in Long Island City. Rockaway has found success by keeping its operation tight, said Stjepan Pavich, head brewer and operations manager. All beer is still made onsite, but Pavich is one of only two people who make and package it.
Diversifying the Industry
As the craft beer industry has grown, it has been forced to expand its reach, even to non-beer drinkers. Unlike the early days, it is now almost a given that tasting rooms will carry alcoholic options besides beer, plus non-alcoholic beverages and overall a wider range of offerings for those who want the tap room experience minus the beer.
Conclusion
While things may look rough now, the professionals interviewed for this story agree that their industry will carry on – and probably come out stronger as a result. The craft beer industry will continue to evolve, and breweries will need to adapt to the changing landscape. With the industry’s focus on diversification, innovation, and community engagement, it is likely that craft beer will remain a beloved and vibrant part of New York City’s cultural scene.
FAQs
Q: What are the main challenges facing the craft beer industry in New York City?
A: Rising rents, high labor costs, and intense competition are forcing some breweries to close, cut costs, or at least look for creative ways to broaden their appeal.
Q: What is the current state of the craft beer industry in New York State?
A: The number of breweries in New York State has surged from 95 in 2012 to 535 in 2023, according to the New York State Brewers Association.
Q: What are some ways that breweries are adapting to the changing landscape?
A: Some breweries are combining forces, while others are focusing on diversification, innovation, and community engagement.
Q: Will the craft beer industry continue to thrive in New York City?
A: Yes, the craft beer industry will continue to evolve, and breweries will need to adapt to the changing landscape. With the industry’s focus on diversification, innovation, and community engagement, it is likely that craft beer will remain a beloved and vibrant part of New York City’s cultural scene.
