Authors: Monica B. Fine, Mark Mitchell and Richard Martin
Southern Business & Economic Journal (2026)
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Abstract
This study examines whether regional differences exist in the U.S. craft beer industry, focusing on states in the American South. Using 2024 state‑level data, we compare Southern and non‑Southern states on the number of craft breweries per capita, production volume per capita, and economic impact per capita. The results show that Southern states continue to have fewer breweries, lower per capita production levels, and smaller per capita economic impact than the rest of the country. However, the South has grown faster than other regions over the past decade, suggesting the gap is slowly closing. Regression analysis shows that per capita beer consumption is the strongest predictor of how many breweries a state has, while cultural and policy factors help explain why the South still trails other regions. Overall, the findings show that although the South remains behind on key per capita measures, it is expanding more quickly and is becoming a more active part of the U.S. craft beer industry.