Beer Market Performance and Industry Financials
Anheuser-Busch InBev (AB InBev), the world’s largest brewer known for Budweiser, reported a rise in its second-quarter profit in 2025, surpassing analysts’ expectations despite a continued decline in beer sales volume (Morningstar, 2025). This suggests improved operational efficiencies or favorable pricing strategies offsetting volume pressures.
Meanwhile, the U.S. beer market continues to show signs of contraction. The Beer Institute reported a 2.6% year-over-year decline in beer shipments for May 2025, totaling approximately 13.2 million barrels removed for domestic consumption—a decrease of nearly 350,000 barrels compared to May 2024 (Craft Brewing Business, 2025). Year-to-date taxable removals stood at 58.5 million barrels, down 5.9%, or close to 3.7 million barrels, from the same period last year. This decline highlights ongoing challenges in the overall beer market amid evolving consumer habits and competitive pressures.
Shifting Consumer Preferences and On-Premise Insights
Consumer trends in early 2025 continue to emphasize health-conscious choices and premiumization in beverage selection. A CGA by NIQ report indicates over 75% of consumers dined out in January 2025, with half visiting bars for drinks, reinforcing the on-premise channel’s importance (Craft Brewing Business, 2025). Additionally, roughly one-third of consumers plan to choose healthier food and drink options, and 25% aim to moderate alcohol consumption.
These shifts present growth opportunities for craft brewers focusing on lower-alcohol or non-alcoholic beer variants and premium specialty brews. Moreover, value remains critical, with nearly 50% of consumers seeking good value, and nearly 30% pursuing deals or promotions. Food and drink pairings also emerge as a powerful engagement tool in on-premise venues.
Craft Beer Trends in 2025
Craft beer continues to evolve with persistent dominance of India Pale Ales (IPAs) in the segment. Recent data confirms that IPAs, particularly traditional or “West Coast” styles, remain the primary growth driver in craft, with brands like New Belgium’s Voodoo Ranger leading dollar sales increases (+2.8% year-over-year) (BevIndustry, 2025). However, innovation has slowed compared to the pre-pandemic surge of new IPA styles, signaling maturation within this category.
Another significant emerging trend is the intersection of cannabis and craft beverages. Cannabis-infused drinks—such as those containing THC, hemp, Delta 8, or Delta 9—are gaining attention, with sales around $70 million in the U.S. and new legislation like Minnesota’s allowing THC-infused taproom beverages (Hop Culture, 2025). This “fifth category” is increasingly viewed as a healthier alternative by consumers, with some reducing alcohol intake in favor of cannabis-based options, representing a competitive frontier alongside traditional craft beer.
Additional interest exists in sessionable beers, cold IPAs using lager yeast to create smooth yet hoppy profiles, and continued exploration of hybrid beer styles and sustainable practices, although the rate of widespread sustainability adoption remains gradual (Escarpment Labs, 2024).
Industry Outlook
Overall, the traditional beer market faces volume contractions, but large brewers are maintaining profitability through operational strategies, while craft beer shows segmented growth fueled by consumer preferences toward premium quality, health-conscious alternatives, and novel beverage categories like cannabis-infused drinks. On-premise channels continue to be important, demanding that breweries tailor offerings toward evolving tastes and value expectations in the competitive 2025 landscape.