AUSTIN – The number of craft breweries in Texas has surged dramatically over the past decade-plus, increasing 990 percent from 20 breweries in 2005 to 218 in 2017, according to research by CBRE.
The primary driver behind this expansion has been microbreweries, which expanded nearly 5,000 percent—from just three in 2005 to 152 in 2017. Brewpubs, the restaurant-brewery segment, have also seen strong growth and now number about 55, a rise of roughly 450 percent.
“Local is the new global—from its cottage roots before the 2008 recession to its rise as a niche category during the recovery, the Texas craft beer industry reflects that spirit,” said Robert Kramp, Director of Research & Analysis at CBRE.
This rapid growth in both the number of breweries and production volume has translated into significantly increased demand for commercial real estate. Since 2005, the industrial and retail space occupied by craft brewers in Texas has grown about 265 percent, reaching roughly 4.8 million square feet statewide.
Central Texas emerged as the leading production center, brewing more than 187,000 barrels last year—the equivalent of about 26.3 million bottles. The Dallas–Fort Worth and Houston metropolitan areas serve as important secondary production hubs. Together, these regions have helped Texas achieve the third-highest economic output from craft breweries in the United States.
Not every major Texas brewery began as a small operation. For example, the Spoetzl Brewery in Shiner, Texas—founded in 1909—remains a dominant force in the state’s beer production. Approximately 70 percent of the 1.1 million barrels produced in Texas in 2016 came from Spoetzl’s operations.
Recent industry consolidation illustrates changing market dynamics. Notable acquisitions in 2016 included MillerCoors’ purchase of Revolver Brewing, based in the Dallas–Fort Worth area, and Anheuser-Busch’s acquisition of Houston-based Karbach Brewery. Along with evolving legislation and steady consumer demand, such deals are expected to shape the future of craft brewing in Texas.