Constellation Brands Faces Steep Challenges in US Beer Market
Constellation Brands, known for its dominance in Mexican beer brands like Modelo Especial, is experiencing significant headwinds. Investors are concerned as the company’s shares have dropped nearly 40% this year amid falling beer sales and rising costs linked to tariffs on aluminium and Mexican imports. These tariffs, combined with weaker demand from Hispanic consumers affected by immigration policies, have pressured Constellation’s beer volumes and revenue. The brewer has lowered its fiscal year forecasts, anticipating a 2% to 4% decline in net beer sales, reversing previous expectations of flat to moderate growth. Additionally, Constellation’s attempt to sell off its wine division to focus exclusively on beer stalled, leaving key premium wine brands under its retained portfolio (The Drinks Business, 2025).
Murree Brewery Initiates Beer Exports After 50 Years
Pakistan’s Murree Brewery has broken a half-century hiatus by beginning to export beer to non-Muslim countries, targeting markets in the United Kingdom and Portugal with plans for Japan. Established in 1860 and Pakistan’s sole brewery, Murree has gained governmental approval for exports only recently. The brewery expects its alcoholic beer exports to gradually increase over the next 3-4 years as it establishes its position internationally amid stiff competition. Currently, the brewery’s non-alcoholic product exports generate approximately US$30,000 monthly, surpassing alcoholic export revenues. A recent price increase of 10-15% on its products received regulatory approval, positioning Murree for cautious growth in export markets (The Drinks Business, 2025).
Global Craft Beer Market Projected to Nearly Double by 2033
The craft beer market is thriving and expected to grow from USD 142.6 billion in 2024 to USD 329.7 billion by 2033, at a compound annual growth rate (CAGR) of 8.74%. Europe leads with over 38% market share as consumer preferences shift toward unique, flavorful, and locally brewed beers. Key growth drivers include increased interest from millennials, rising health consciousness favoring low- and no-alcohol options, and expanding beer tourism. In the Asia Pacific region, rising disposable incomes and urbanization contribute to heightened demand for premium craft beers. Marketing innovations, including interactive tasting events and collaborations with restaurants, support continued brand growth globally (IMARC Group, 2025).
Changing Consumer Behavior Fuels Trends in U.S. Craft Beer
In the U.S., emerging trends indicate a strong consumer shift toward health-conscious beer options. Non-alcoholic beer sales surged by 33.7% year-over-year on-premise, with non-alcoholic IPAs and stouts seeing dramatic growth. Approximately one-third of surveyed consumers are choosing healthier beverages, leading craft brewers to expand lower-alcohol and non-alcoholic offerings. Premiumization also plays a crucial role, with 20% of consumers showing willingness to pay for higher-quality products. Craft brewers are innovating not only through new beer styles but also by enhancing taproom experiences and diversifying into ready-to-drink (RTD) cocktails (Craft Brewing Business, 2025; The Drinks Business, 2025).
Retail Innovation: Aldi Partners with Hawke’s Brewing Co for Accessible Craft Beer
Aldi in Australia has launched Tropicaldi XPA in partnership with Hawke’s Brewing Co, marking the brewery’s first supermarket collaboration. The Tropicaldi XPA is a 4% ABV craft-style beer with fruity aromas, now available nationwide in cans at an accessible price point. This partnership is aligned with the growing demand for quality yet affordable craft beers, making craft-style products more accessible to a wider consumer base (Inside FMCG, 2025).
Industry Challenges and Shifting Dynamics
While the global craft beer segment continues to grow, industry insiders report challenges such as market saturation, rising costs, and evolving consumer habits reshaping the landscape. There is consolidation among craft breweries, and a reduction in the variety of brands carried by distributors and retailers. Meanwhile, craft brewers attempt to balance tradition with innovation, focusing on approachable flavors, ingredient transparency, and sustainable practices, reflecting changing market dynamics in 2025 (Brewers Association, 2025; Hop Culture, 2025).