Niche Market Potential: The Case of the U.S. Craft Brewing Industry

Abstract

Abstract This study examines craft brewers as a niche market for the malting industry. Results suggest that catering to craft brewers' needs and preferences offers potential opportunities for malt suppliers. Malt suppliers will have to increase services and provide differentiated malt products to increase demand from craft brewers. This may be a problem for a number of firms that have invested capital to supply large volumes of mass‐produced malt inputs. Malt barley producers may also be able to exploit niche markets as input suppliers to malting facilities.