A Year of Correction for Craft Beer, With Early Signals of Recovery

The U.S. craft brewing industry continued to adjust to a challenging market in 2025, posting a 5.1% decline in production amid broader softness in beer sales. Despite these headwinds, craft brewers slightly increased market share and demonstrated resilience in key segments.

Production Declines, but Craft Outperforms Beer Overall

Total craft production (21,856,000 BBL) fell 5.1% in 2025, with 60% of breweries reporting declines, 39% reporting growth, and 1% holding steady.

By business model:

• Brewpubs: -1.7%

• Taprooms: -3.9%

• Microbreweries: -8.9%

• Regional breweries: -5.9%

Craft beer outpaced the overall beer category, which declined 5.7% by volume, highlighting relative resilience within a contracting market.

Market Share Edges Up

Craft's share of the beer market by volume increased slightly from 13.2% to 13.3%, reflecting continued consumer demand for independent brewers despite overall category declines.

Craft beer's retail dollar value declined 3.6% year-over-year in 2025, to a total of $27.8 billion. While reduced sales volume contributed to the drop, the impact on dollar sales was less pronounced due to higher average beer prices and a continued shift toward on-site consumption models such as taprooms and brewpubs where there is a higher unit price. As a result, retail value proved more resilient than volume trends alone might suggest.

Craft maintained a 24.6% share of total beer retail dollar sales, essentially unchanged from the prior year, reinforcing its stable position in the broader market despite ongoing headwinds.

Employment Adjusts with Industry Shift

The craft brewing workforce declined to 189,000 jobs, down 8,000 (-4%) year-over-year. Employment held up better than production, supported by the relative stability of hospitality-focused brewery models and the higher rate of employees per barrel produced in those models.

Fewer Breweries, Slower Openings Mark Industry Reset

The number of operating U.S. craft breweries fell to 9,578, a 2.9% net decline from 2024.

Breakdown by type:

• Microbreweries: 1,994 (-4.4%)

• Brewpubs: 3,525 (-2.5%)

• Taprooms: 3,784 (-2.7%)

• Regional breweries: 275 (-0.4%)

New brewery openings dropped sharply to 300 in 2025 (down from 518 in 2024), while closures also declined to 481 (from 591). The slowdown in openings signals a shift toward a more mature, competitive market with fewer untapped opportunities for new market entrants.

Regional and Business Trends

Performance varied across regions. The East North Central Census division posted the strongest trend, finding growth of +0.3%, followed closely by the Pacific division (-0.1%), both outperforming national trends.

Breweries with strong brand identity and clear market positioning continued to outperform, with brands like Garage Beer and Outlaw (by Tivoli Brewing Company) among notable gainers.

Hospitality-driven models, i.e., brewpubs and taprooms, remained comparatively resilient, particularly those offering differentiated value to budget-conscious consumers.

Looking Ahead: Cautious Optimism

Key trends shaping the future include a potential rebound in consumer attitudes toward beverage alcohol, continued momentum for strong and differentiated brands, and the growing importance of experience-driven brewery models that offer value beyond the product itself.

Matt Gacioch, staff economist at the Brewers Association, said: "The industry outlook points towards cautious optimism, as shifting trends offer hope for a more stable path forward after several challenging years. While it's probably premature to say the industry has settled into a 'new normal,' there are many indications that we are moving in that direction. What's nearly guaranteed is that success going forward will come down to creating something meaningful and memorable for consumers. Breweries that deliver consistent quality, human connection, and unique experiences will stand out."

Notes

Numbers are preliminary. The complete 2025 industry analysis will be published in the May/June 2026 issue of The New Brewer, highlighting regional trends and production by individual breweries.

Figures do not include FMBs, or wine- or spirits-based RTD/RTS beverages.

About the Brewers Association

The Brewers Association (BA) is the not-for-profit trade organization representing more than 9,300 small and independent American brewers, their beverages, and the community of craft beer enthusiasts. The BA champions the independent craft brewer seal — a trusted symbol that helps consumers identify beer brewed by small and independent producers.

The BA organises some of the industry's most influential events, including the World Beer Cup®, Great American Beer Festival®, Craft Brewers Conference™ & BrewExpo America®, and American Craft Beer Week®. It also publishes The New Brewer® and through Brewers Publications®, remains the country's leading publisher of brewing literature.

Beer lovers can explore the world of craft beer at CraftBeer.com.

For more information:

Jessie Vandenhouten (on behalf of the Brewers Association)

Email: brewerspr@backbone.media | Tel: 970.963.4873 ext. 1220

Third-party news items are published as received for informational purposes. Publication does not imply endorsement by the Guild. Please use the contact details within the post for any enquiries.