Craft Beer Market Sees Strong Growth Prospects
The global craft beer market size was valued at USD 142.6 billion in 2024 and is projected to nearly double by 2033, reaching USD 329.7 billion with a compound annual growth rate (CAGR) of 8.74% from 2025 to 2033. This growth is driven by consumers’ rising demand for unique, flavorful beers, artisanal beverages, and locally brewed products, especially across Europe which dominates the market with over 38.1% share in 2024 (IMARC Group, 2025).
Emerging Consumer Trends Impact the Industry
Health consciousness is reshaping the market, with increasing consumer interest in low-calorie, organic, and no- or low-alcohol options. Non-alcoholic beer on-premise sales have surged by 33.7% year-over-year, outperforming traditional beer growth, with notable rises in non-alcoholic IPAs and stouts, growing over 170% and 130% respectively (Craft Brewing Business, 2025). Millennials and health-conscious consumers are a key demographic, driving premiumization and experimentation with diverse beer styles.
Innovation and Premiumization Are Key for Craft Brewers
Craft brewers are innovating beyond traditional beer styles, expanding offerings to include canned cocktails and RTDs (Ready-to-Drink beverages), along with family-friendly taproom experiences to broaden appeal (Craft Brewing Business, 2025). Premiumization remains a strong trend, with about 20% of consumers prioritizing quality over price, encouraging breweries to emphasize unique, high-quality brews and specialty beers.
Market Challenges and Industry Consolidation
Despite positive growth in craft beer prospects worldwide, the U.S. craft beer segment has experienced revenue declines in recent years, with a 3.8% CAGR decrease over five years and an expected 1.9% drop to $7.2 billion in 2025. Market rationalization and consolidation continue as distributors and retailers trim offerings, leading to fewer but larger players dominating distribution channels (IBISWorld, 2025; OH Bev, 2025).
Draft Beer Faces Downward Pressure, While Alternative Segments Expand
Draft beer volumes show a continued decline on key occasions such as Thanksgiving Eve, with draft beer sales falling year-over-year amidst on-premise shifts. Meanwhile, ready-to-drink and packaged beverages, including spirits, demonstrate double-digit growth, representing a changing consumer preference landscape (BeerBoard, 2025). Large macro-brewers including Anheuser-Busch InBev report ongoing revenue pressures, though brands like Michelob Ultra remain strong (VinePair, 2025).
Regulatory Updates Affecting the Industry
New federal regulations impacting hemp-based beverages are poised to disrupt a multi-billion dollar category by 2026. Stricter potency limits will effectively ban most existing hemp drinks, forcing the industry to find alternative paths forward (Nutter, 2025). Additionally, new permits for estate tasting events and direct shipping for craft distillers are being implemented, signaling evolving regulatory environments that affect producers beyond beer.