U.S. Craft Beer Industry Sees Production Decline and Brewery Consolidation
The U.S. craft beer industry is experiencing a downturn in 2025, with production volume declining by an estimated 5% year-over-year and the number of operating craft breweries down 1% to 9,269 as of June. NielsenIQ data reveals a 4.1% drop in off-premise volume for craft beers, closely mirroring the 4.2% decline in the overall beer category. Microbreweries saw the largest contraction with a 3% drop, while taproom and brewpub counts remained more stable, suggesting a shift towards hyperlocal consumption models. Approximately half of brewers reported growth, particularly among smaller breweries producing under 1,000 barrels annually, indicating resilience in very small-scale, local operations. However, overall consumer frequency in craft beer consumption is declining, with economic pressures influencing drinking habits despite more legal-age adults consuming craft beer occasionally compared to previous years (Craft Brewing Business, 2025; NielsenIQ, 2025).
Global Craft Beer Market Poised for Significant Expansion by 2033
In contrast to the U.S. near-term pressures, the global craft beer market presents a highly optimistic outlook with a forecasted compound annual growth rate (CAGR) of 8.74% from 2025 through 2033, positioning the market to reach a substantial value of USD 329.7 billion by 2033. Europe leads in global craft beer consumption and market share, accounting for approximately 38.1%, driven by strong consumer preference for premium and diverse flavor profiles, a flourishing microbrewery sector, and a rich tradition of beer appreciation. The United States remains a major player with 86.85% share of the North American craft beer market in 2024, fueled by rising demand for artisanal and locally brewed beers alongside growing consumer interest in sustainability and eco-conscious packaging. Notably, 43% of U.S. consumers consider environmental impact important in packaging, with 4-7% willing to pay a premium for compostable or plant-based packaging alternatives. These trends open opportunities for breweries to innovate in marketing and product development targeting health-conscious and environmentally aware millennial consumers (IMARC Group, 2025).
Emerging Trends: Cannabis-Infused Beverages and Market Diversification
A notable development within the beverage landscape influencing beer market dynamics is the rapid growth of cannabis-infused drinks, representing a burgeoning “fifth category” that includes products with THC, hemp, and CBD. Currently tracking over $70 million in sales in the U.S., this segment draws interest especially among younger consumers seeking alternatives perceived as healthier with fewer aftereffects compared to alcohol. Legislative advances, such as Minnesota’s new law permitting THC-infused drinks in taprooms, underscore the growing intersection between craft beer and cannabis beverage markets. This diversification suggests new market potentials but remains nascent with limited hard data on long-term impact (Hop Culture, 2025).
Ongoing Industry Events and Consumer Engagement
In parallel to market trends, industry events such as Raised Grain Brewing’s 10th anniversary celebration in Milwaukee highlight the continued enthusiasm for craft beer culture and local brewery communities. Seasonal Oktoberfest events and collaborations featuring new releases underline the importance of consumer engagement through experiential marketing and product innovation at the grassroots level. Meanwhile, Australian beer industry players prepare for the upcoming Beer & Brewer Awards, which honor outstanding achievements in beer venues, brands, and individuals, reflecting the global commitment to celebrating beer excellence and fostering industry growth (MilwaukeeMag, 2025; Beer & Brewer, 2025).