Assessing Sustainability Trade-Offs in Craft Beer Production Through Life Cycle and Costing Analysis Scenarios

This study applies integrated LCA–LCC to 1 L of bottled beer at a representative small Japanese brewery using 2024 operational data. Following ISO 14040/44, the cradle-to-gate boundary covers raw materials (excluding agricultural cultivation while including transport and preprocessing), brewing, packaging, and thermal sterilization. The baseline global warming impact is 0.52 kg CO 2 e/L and the cost is JPY 487/L, with single-use glass and labor identified as dominant hotspots. As beer is produced from malt, hops, yeast, and water, this study focuses on how alternative production strategies mitigate sustainability hotspots within this process. Three alternative production scenarios were evaluated within this integrated LCA–LCC model. Scenario 1 (local rice substitution) replaces 30% of the fermentable extract from imported malt with domestically grown rice, changing only ingredient transport and preprocessing within the truncated cradle-to-gate boundary (crop cultivation remains excluded), and yields 0.55 kg CO 2 e/L and JPY 492/L, i.e., a slightly higher global warming impact and cost than the baseline. Scenario 2 (direct sales expansion) assumes that 50% of the beer is sold on site via draft, thereby reducing single-use glass bottles and fuel for pasteurization and achieving 0.29 kg CO 2 e/L (−44%) and JPY 435/L (−11%) in the deterministic model, the best combined environmental and economic performance among the modeled options. Scenario 3 (joint logistics) models cooperative brewing and shared distribution, which improve labor efficiency and modestly reduce transport intensity, delivering 399 JPY/L in the deterministic model; however, Monte Carlo analysis yields a higher expected cost and indicates that these cost savings are not robust. One-way sensitivity analysis identified packaging and labor as the dominant drivers of both environmental and economic performance, while Monte Carlo simulation confirmed the relative insignificance of electricity-related parameters and reinforced the comparative robustness of Scenario 2. Together, these results highlight the most effective leverage points for a sustainable transition in Japan’s craft beer sector, offering the greatest leverage for a more sustainable transition in Japan’s craft brewing sector.