14 Innovations Fueling Growth in Craft Beer

Local craft breweries have two outstanding features. First, they are the hub of the local community, the social pulse of where people gather, meet, and share. Second, they are the drivers of innovation, experimentation, and research in the industry.

Craft breweries have the latitude to experiment with ingredients, create new flavor profiles, use new technologies, and respond more nimbly to customer needs compared to commercial breweries.

As growth in craft beer has slowed, breweries are even more focused on innovations, which has put them at the helm of change and a sustainable future industry-wide.

In fact, sustainability is a key industry focus right now. More craft breweries are leaning towards practices that are better for the environment, from sourcing locally to waste reduction to eco-friendly packaging.

Experimentation has always been an integral part of craft breweries and now, brewers are relying on it to differentiate their products to keep their customers coming back and draw new ones.

Key Areas of Innovation and Experimentation in Craft Beer

Meaningful Ingredients: Brewers are experimenting with sustainable grains like Kernza®, a perennial wheatgrass with deeper roots for better drought resistance. They are also exploring drought tolerant barley varieties that can thrive with less irrigation.

Creating Sustainable Beers that are Good for the Environment: customers are putting increased value on craft beers and foods that are more sustainable and good for the environment. This means ingredients that are regeneratively grown, malt produced and sourced locally, using byproducts to create new types of beers, and using upcycled food waste to create new flavors.

Zero Waste Brews: using raw materials that are recycled in beer production and packaging is becoming a credible way to promote their products as sustainable and engage consumers.

Circular Economy: brewers are increasingly finding ways to reuse, recycle, upcycle, or repurpose beer mash, food waste, and packaging materials to reduce waste and more importantly create new innovative products. Toast Brewing in the UK is using surplus fresh bread to make their brews.

Cross-Industry Partnerships: whether that’s farmers, restaurateurs, maltsters, or gardeners, to create new products, brewers are finding new uses of existing products, and building an ecosystem where everyone not only has new sources of income but benefits from shared insights. Several breweries have been experimenting with using recycled wastewater to produce beer, and Half Moon Bay Brewing in CA is producing a limited edition Tunnel Vision IPA using greywater, which they’re sourcing from NASA.

Partnering with Caretakers of the Land: in the face of climate change, brewers are investing in projects that follow practices to conserve nature and restore the land. Partnering with indigenous communities and underserved farmers, they are incorporating traditional methods of land conservation as well as traditional ingredients in making beer.

Bold Flavors: the 2024 Beer Report states that bold flavor-forward profiles using unexpected ingredients like toasted peanuts and honey are trending, as well as high ABV products. Brewers are experimenting with new, unusual ingredients and blending methods to create distinguishing flavors, from wattle seeds used by The Mismatch Brewing Company to Christmas tree pine needles.

Aligning with UN Global Sustainability Goals: Many breweries have adopted the GHGp or SBTi goals for sustainable brewing, with ambitious targets of becoming carbon neutral. This has led to many innovations in energy efficiency and emissions reductions, such as using renewable energy in the brewing process, water upcycling, heat capture, and local supply chains to reduce carbon footprint.

Eco-Friendly Packaging: brewers are making headway in eco-friendly packaging as another way to reduce their environmental footprint and attract eco-conscious consumers. There has been a slew of innovations in beer packaging, including compostable and biodegradable packaging, packaging made out of barley and wheat, biodegradable binders to protect marine life, and package design that reduces waste and environmental impact.

Edible Labels: some beers, like Vilkmergės Žiemos, use edible labels made of flour perhaps to reduce waste, but more importantly to get customers to interact with their beers and have fun. Previously, Saltwater Brewery in Florida had introduced edible six-pack rings for their beer.

Climate-Related Partnerships: breweries are partnering with other organizations to experiment with climate-smart products, such as Earth to Beer. This campaign challenges brewers to craft a packaged product that is better for the planet.

Supporting Conservation Projects: Breweries are collaborating with or supporting conservation projects through direct donations or contributions of profits from a particular beer. This is becoming a new way to get buy-in from consumers who ‘vote with their wallets’ but also raise visibility and brand awareness within new communities, such as the recent collaboration between Colorado breweries and the Colorado Trail Foundation “Hit the Trail Pale Ale” where 20% of the brand’s sales will go to maintaining the Colorado Trail.

Raising Awareness and Profit Sharing: as one of the most energy-intensive industries, beer has a bigger onus of addressing climate issues. Some breweries are turning this into an opportunity to raise awareness of issues like water usage and share profits with climate nonprofits while raising awareness for their brands. Maumee Bay Brewing in Ohio released the “Creature from the Algae Bloom”, a green beer flavored with matcha to raise awareness of the algae bloom, particularly in Lake Erie.

Craft Beer Industry is Redefining What it Means to be Innovative

To a great extent, innovation around beer making has gone beyond finding new styles or flavors to focusing on certain goals, like combating climate issues, building an ecosystem of dependable partners to collaborate with, and creating a high-quality, hyperlocal product that brings in new customers. Sourcing locally grown grains for fresher ingredients that also minimize carbon footprints and enhance beer quality has become a fundamental aspect of craft beer innovation. It’s no longer just about experimenting with new flavors; it’s about embracing sustainability, forging meaningful partnerships, and delivering a superior product to consumers.

Ready to explore how innovative practices are reshaping the craft beer landscape?

Download our infographic for a visual tour of sustainable brewing’s impact on the industry.