Surge in US Brewery Closures Signals Market Consolidation
The first half of 2025 has seen a significant reversal in the US craft beer scene, as more breweries closed than opened for the first time in over a decade. Over 250 breweries shuttered their doors between January and June, with many citing rising operational costs, declining taproom traffic, and fierce competition for retail shelf space. Even established neighborhood breweries are facing financial pressure, underscoring a market correction that some industry insiders describe as a “reckoning.” This shift marks a critical change from the boom years of the 2010s when craft breweries proliferated rapidly (American Craft Beer, 2025).
Decline in Craft Beer Volumes Reflects Broader Industry Trends
Craft beer volumes in the US dropped by 4.1% in the first half of 2025, a decline in line with the overall beer category’s 4.2% decrease. Despite this, the number of craft beer drinkers remains at an all-time high, showing a trend toward consuming less beer but opting for higher-quality products. The impact of this volume decline partly reflects a diversification in consumer preferences and industry adjustments following the pandemic’s disruption to on-premise sales (Beverage Daily, 2025).
Distributor Demand and Wholesale Challenges
Data from the National Beer Wholesalers Association reveals a sustained contraction in distributor demand for craft beer. The Beer Purchasers’ Index (BPI) score for craft beer in June 2025 was just 15, far below the expansionary threshold of 50, indicating deep pessimism among wholesalers. This ongoing decrease in wholesale interest pressures craft breweries to pivot toward taproom sales, local partnerships, and streamlined product lines to maintain profitability (Craft Brewing Business, 2025).
Growing Opportunities Through Health-Conscious and Premium Products
Despite challenges, the craft beer market shows resilience through innovation aligned with consumer health trends. A rising demand for low- and no-alcohol options is fueling product development, matching a wider societal shift toward wellness. Health-conscious consumers, representing an increasing share of on-premise visitors, are attracted to light and artisanal non-alcoholic beers. The trend toward premiumization also continues, with consumers willing to pay for superior quality and unique beer experiences, especially when combined with food pairings that enhance flavor. Value remains important, however, with nearly half of on-premise beer drinkers prioritizing good value and deals (IMARC Group, 2025; Craft Brewing Business, 2025).
Emerging Trend: Cannabis-Infused Beverages Cross Over with Craft Beer
A notable emerging trend in 2025 is the growth of cannabis-infused beverages, often dubbed “the fifth category.” With a significant portion of US adults identifying as cannabis consumers, beverages infused with THC, hemp, or CBD are gaining traction. Some states, such as Minnesota, have legalized serving these products in taprooms, highlighting an intersection between the craft beer and cannabis industries. While data remains nascent, these beverages are expected to capture increasing shelf space and consumer interest throughout the year, representing a potential growth avenue for innovative craft brewers (Hop Culture, 2025).
Summary
In 2025, the US craft beer industry faces a complex landscape marked by a rise in brewery closures and volume declines, balanced by evolving consumer preferences for health-conscious and premium products. Wholesaler contraction demands strategic shifts to direct consumer engagement and lean operations. New frontiers like cannabis-infused drinks signal changing dynamics and opportunities that may shape the market’s future.