Pennsylvania’s craft beer sector continues to flourish, ranking second in the nation in production and economic impact despite facing ongoing challenges such as labor shortages, market saturation, and shifting consumer preferences.
The Keystone State’s 533 breweries generate a significant $5.4 billion annually, according to the Brewers Association, solidifying Pennsylvania’s position as a craft beer powerhouse.
Key Data: Four Pennsylvania breweries were ranked among the nation’s top 50 producers in 2024, as reported by the Brewers Association. Only California had more breweries in the top 50, with five in total.
Notable among these are Pottsville-based D.G. Yuengling & Son, the oldest brewery in the U.S., which retained its position as the nation’s top craft beer producer. Other high-ranking breweries include Tröegs Brewing of Hershey, which climbed seven spots to 20th, Pittsburgh Brewing, makers of Iron City, ranking 25th, and Williamsport’s New Trail Brewing, which debuted at 46th on the list.
Defining Craft Breweries: As defined by the Brewers Association, a craft brewery produces no more than 6 million barrels of beer annually, and less than 25% of the brewery is owned or controlled by a non-craft beer entity.
Local Insights: Andy Kwiatkowski, founder of Hitchhiker Brewing in Pittsburgh, highlighted the city’s growing craft beer scene as a key factor in Pennsylvania’s continued dominance in the industry. “Pittsburgh is a world-class destination,” Kwiatkowski said, noting that when his brewery opened in 2014, there were only six craft breweries in the city. Today, the number exceeds 40, according to the Pittsburgh Brewers Guild.
Iron City beer, produced by Pittsburgh Brewing, remains the region’s largest craft producer, ranking in the top 50 nationally. In 2022, the brewery opened a 170,000-square-foot facility in East Deer, expanding its product offerings and hosting large events.
In terms of production, Iron City led the Pittsburgh region, producing over 101,000 barrels last year, according to the Pittsburgh Business Times. Smaller breweries in the area, such as Stoney’s Brewing in Charleroi, Helltown Brewing in Export, and Dancing Gnome in Sharpsburg, produced significantly smaller quantities, ranging from 3,960 to 6,700 barrels annually.
The Bigger Picture: Despite the success of these top breweries, Pennsylvania’s craft beer industry faces financial pressures. Small brewers are grappling with rising costs, changing consumer tastes, and tough competition. Tariffs on key materials, including brewing equipment, cans, and ingredients like hops and malt, have only intensified these challenges.
Nevertheless, optimism remains. Brewers Association economist Matt Gacioch expressed confidence in the industry’s future. “Brewers’ proven ability to connect with their customers’ evolving preferences will lead to more opportunities for craft beer success stories,” he said.
Looking Forward: Pennsylvania’s craft beer industry has remained resilient, with the number of breweries growing from 88 in 2011 to 531 by 2022. The state saw a slight increase to 533 breweries in 2023, indicating steady growth despite broader industry challenges.
As the craft beer landscape evolves, the ongoing success of Pennsylvania’s breweries will be a testament to their ability to adapt and thrive in a competitive and changing market.
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