Global Craft Beer Market Hits $111.3 Billion in 2025
The global craft beer market is projected to reach $111.3 billion in 2025, growing at a compound annual rate of 9.9% through 2032 (MetaStat Insight, 2025). This expansion is fueled by consumer demand for authenticity, innovation, and community-driven brands, with younger demographics reshaping expectations around taste, alcohol content, and production methods (MetaStat Insight, 2025). Craft beer is increasingly seen not just as a beverage, but as a lifestyle choice reflecting personal values and collective identity (MetaStat Insight, 2025).
Health-Conscious Consumers Drive Non-Alcoholic and Low-ABV Growth
Health-conscious trends are transforming the beer landscape. In 2025, non-alcoholic beer sales have surged by 33.7% year-over-year in on-premise venues, outpacing traditional beer sales (Craft Brewing Business, 2025). Sales of non-alcoholic IPAs and stouts have increased by over 170% and 130%, respectively, as consumers seek flavorful alternatives without the alcohol (Craft Brewing Business, 2025). Breweries are responding by expanding their low-ABV and non-alcoholic portfolios, catering to those moderating alcohol intake (Craft Brewing Business, 2025).
Consolidation and Market Saturation Shape the Industry
The U.S. now hosts over 9,000 breweries, leading to market saturation and hyper-competition (Breweries in PA, 2025). This environment is driving a wave of “craft-on-craft” mergers and consolidations, as smaller and mid-sized breweries struggle to maintain market share (Breweries in PA, 2025). The formation of B3 Beverage Company, uniting Bald Birds Brewing Co., Yards Brewing Co., Two Roads Brewing, Heavy Seas, and Workhorse Brewing, exemplifies this trend (Breweries in PA, 2025). Such alliances allow breweries to pool resources and better compete for tap lines and consumer attention (Breweries in PA, 2025).
Draft Beer Dominates On-Premise Sales
Draft beer continues to gain ground in the on-premise market, accounting for 52.3% of all out-of-home beer volumes in the U.S. in 2024 (Hop Culture, 2025). This marks an 8.1% increase in distribution points over the past year, more than triple the growth of packaged beer (Hop Culture, 2025). The rise of draft beer is seen as a positive sign for the industry, reflecting strong consumer demand and a preference for fresh, locally brewed options (Hop Culture, 2025).
Regulatory Changes Impact Hemp Beverages
A significant regulatory shift is set to take effect on November 12, 2026, with new federal potency limits on hemp beverages (Nutter, 2025). These changes will effectively ban most hemp beverages currently on the market, forcing the industry to adapt within a year (Nutter, 2025). This development will have far-reaching implications for both federal and state regulations, as well as ongoing litigation related to hemp beverage legality (Nutter, 2025).
Sustainability and Eco-Friendly Innovations Gain Traction
Sustainability is becoming a key selling point for craft breweries. Many are adopting eco-friendly practices such as water reclamation, carbon capture, and using spent grain as livestock feed (Eureka Heights Brewery, 2025). Renewable energy is also being integrated into brewing operations, appealing to socially conscious consumers (Eureka Heights Brewery, 2025).
New Product Launches and Brand Innovations
Fort Hope Brewing Co. has launched a Spiced Winter Ale with an 8.2% ABV, emphasizing both quality and social responsibility by donating 25% of profits to support veterans and their families (Beverage Distributors Inc., 2025). Sam Adams has also introduced its Winter White Ale, featuring orange peel and holiday spices, available in multiple formats (Beverage Distributors Inc., 2025). These launches reflect the industry’s focus on premium, unique brews and meaningful brand stories (Beverage Distributors Inc., 2025).