The number of operating breweries in the US last year grew 16.6% to 5,301, 2016 data from the Brewers Association confirms.

Small and independent craft brewers represent 12.3 percent market share by volume of the overall beer industry.

These businesses produced 24.6 million barrels with a 6% rise in volume on a comparable base and a 10% increase in retail dollar value.

According to Brewers Association, retail dollar value was estimated at $23.5 billion, representing 21.9 percent market share.

With the addition of 1.4 million barrels, craft brewer growth outpaced the 1.2 million barrels lost from the craft segment, based on purchases by large brewing companies.

Bart Watson, chief economist at Brewers Association, explained:  “Small and independent brewers are operating in a new brewing reality still filled with opportunity, but within a much more competitive landscape.

“As the overall beer market remains static and the large global brewers lose volume, their strategy has been to focus on acquiring craft brewers.

“This has been a catalyst for slower growth for small and independent brewers and endangered consumer access to certain brands. Small and independent brewers were able to fill in the barrels lost to acquisitions and show steady growth but at a rate more reflective of today’s industry dynamics.

“The average brewer is getting smaller and growth is more diffuse within the craft category, with producers at the tail helping to drive growth for the overall segment.”

A breakdown of the 5,301 breweries in operation showed there were 3,132 microbreweries, 1,916 brewpubs, 186 regional craft breweries and 67 large or otherwise non-craft brewers in the US.

826 new breweries opened in 2016 while 97 closed. Craft brewers provided nearly 129,000 jobs, an increase of almost 7,000 from the previous year, the research showed.