Why are there more and more small breweries now?

In recent years, the demand for craft beer in China and even the world has risen rapidly, and the number of small breweries (microbreweries) has exploded. According to a report from Dongguan Securities Research Institute, my country's craft beer consumption increased from 810 million liters to 1.2 billion liters from 2018 to 2021, with an average annual compound growth rate of 14%, and is expected to reach 2.29 billion liters by 2025. At the same time, global equipment manufacturers have noticed that consumers' pursuit of unique flavored beer has continued to increase, prompting more and more small breweries and home brewing projects to emerge, thus driving a wave of demand for beer production equipment. In particular, young groups represented by Generation Z and millennials are willing to try novel flavors of beer such as fruity, sweet, and caramel, which has greatly enriched the market category and promoted the optimization and upgrading of the beer industry structure.

1. Background of the beer industry

Craft beer was born in the mid-to-late 20th century. In recent years, consumers around the world have increasingly preferred high-quality and diversified beer. According to industry analysis reports, consumers' demand for the unique flavor of craft beer has increased significantly, and a large number of small and medium-sized breweries have therefore invested in advanced brewing equipment to meet diverse tastes. Under this trend, traditional large-scale beer companies have also begun to promote product innovation, such as launching high-end product lines such as IPA, and the industry as a whole has gradually entered a stage of high-end and differentiated competition. The domestic beer market is highly concentrated: the market share of the top five beer companies in 2022 will reach 92%, but the craft beer market segment will continue to grow rapidly, and the market structure will thus present the characteristics of "oligopoly dominance + craft beer segmentation". In the general environment, factors such as changes in consumer demand, market diversification and policy support have jointly spawned a large number of entrepreneurs to enter the craft beer field, injecting new vitality into the industry.

2. Evolution of brewing technology

1 .With the development of production processes and automation technology, the equipment of small breweries has become more modern and refined. The popularity of automated saccharification systems, intelligent fermentation systems and precision temperature control equipment has made many brewing links standardized and more controllable. For example, advanced fermentation vessels and automatic CIP cleaning systems have greatly simplified production operations and improved product consistency and quality. Modern industrial-grade fermentation equipment usually adopts a double-layer stainless steel jacket (stainless steel pressure fermenter) design, equipped with an efficient insulation layer and precise temperature control technology, which can achieve ±0.1℃ temperature control. These advanced equipment such as fermentation equipment and unitank fermenter (single tank fermentation system) are often regarded as one of the best brewing equipment on the market, helping small breweries to reach commercial-grade production standards. Currently, commercial brewing The application of system and intelligent control system in small factories is becoming more and more common, so that small breweries can also carry out sustainable and efficient production operations like large factories.

2 .On the other hand, technological progress has also made beer brewing more flexible and diverse. For example, by adjusting the saccharification curve and fermentation curve, brewers can quickly switch the process of different beer styles in the same system: classic wheat beer, Taiwanese-style beer and even strong beer can be achieved on a complete set of equipment. Many brewery equipment manufacturers provide customized solutions for customers, from home 20L brewing machines to commercial-grade 500L workshops, to 5000L or even larger breweries, covering the full chain of needs from small B&B bars to industrial production. In terms of equipment, in addition to the common three-barrel boiling system and fermentation tanks, various conical fermenters and bright tanks have also appeared. The best conical fermenter (best conical fermenter) fermenter) has the advantages of fast sedimentation and high beer yield, and is increasingly favored by small breweries.

3. Lower barriers to entrepreneurship

The lowering of the entry threshold for small breweries is another major factor that has contributed to the surge in their number. In the past, opening a brewery required huge investments; now standardized and modular micro brewery equipment has significantly reduced overall costs. Industry data shows that a micro brewery with an annual production capacity of 20hL (about 2000L) may have a total investment of between $250,000 and $500,000, of which the bulk is the cost of various brewery equipment. Compared with the start-up costs of hundreds of thousands or even millions of dollars in the past, small-scale plants and equipment now generally have brewery equipment for sale and second-hand markets to choose from, further sharing the burden of entrepreneurship. At the same time, many brewing equipment Companies (brewing equipment companies) provide a "one-stop" solution, from site selection and design, equipment supply to operation training, so that entrepreneurs do not need to start from scratch. This equipment and service model also reduces the selection and operation risks to a certain extent, allowing more investors to dare to enter the field of craft beer.

4. Driven by consumer demand

The ever-increasing beer flavors and types on the market are largely due to consumers' pursuit of novel experiences. The younger generation of consumers are no longer satisfied with the uniform taste of industrial factories, and are more willing to pay for high-quality, high-flavor beer. This change in consumption habits It has driven the market to develop in a more unique and characteristic direction, and also accelerated the spread of microbreweries. Data shows that young Chinese people are particularly inclined to try innovative beers such as fruity and caramel flavors; in markets such as Europe and the United States, the proportion of new craft beers has also steadily increased. Overall, the focus of market competition is shifting from scale expansion to flavor innovation and quality upgrades, which provides more opportunities for small breweries: they can quickly respond to market demand and launch new varieties with clear differentiation, thereby grabbing a place in the highly concentrated beer industry.

5. Tonsen equipment helps

As a professional beer equipment manufacturer (brewery equipment manufacturers, Shandong Tonsen Company focuses on providing a full set of brewing equipment and brewing process solutions. Tonsen's product line covers a complete set of commercial brewing systems, including fermentation vessels, saccharification pots, boiling pots, etc., including various fermentation equipment. The unitank fermenter and stainless steel pressure fermenter developed by it are known for their stable quality. The matching fermentation control system and automatic CIP cleaning system can ensure production efficiency and hygienic safety. It is worth mentioning that Tonsen also provides high-end conical fermenters. Many detailed designs (such as 45° conical bottom, automatic slag discharge system, etc.) allow brewers to easily collect yeast and sediment, improving the yield and consistency of beer flavor. Tonsen has participated in many well-known projects with its technical strength: for example, its 5000L fully automatic craft brewing system is tailored for German customers, which not only saves energy and reduces emissions, but also covers everything from Blue Moon to Asian-flavored Tiger beer. Beer) and other customized beer needs, and cooperated with China's top brand Tsingtao to develop a high-end process series. According to Tonsen officials, this set of equipment perfectly reproduces the classic malt aroma of Blue Moon, and can also quickly switch the fermentation process according to the recipe requirements of Tiger Beer. It can be seen that whether it is the classic Blue Moon, Tiger, or the brand styles of international giants such as Corona, Heineken, Budweiser, Coors Light, etc., they can all be achieved through Tonsen's system. In addition, Tonsen also provides a full range of equipment from home nano beer machines to turnkey breweries of thousands of liters, and can get turnkey brewery system-style support regardless of size. At present, Tonsen equipment has been exported to more than ten countries and regions around the world, and has helped many customers establish micro and medium-sized breweries, and the reputation of best brewing equipment has also won industry praise. In short, the rise of small breweries is the result of the combined effect of market trends, technological advances and consumption changes. In this wave, professional brewery equipment like Tonsen Advanced equipment and technical support provided by manufacturers are becoming the key factors for the success of many entrepreneurs and craft brewers. As more brewers and investors join the craft brewing camp, industry insiders believe that the number of small breweries will continue to grow, bringing more innovation and vitality to the beer industry.