U.S. Craft Beer Revenue Declines Amid Broader Market Contraction
U.S. craft beer revenue fell by 4.1% in the first half of 2025, reflecting a broader market contraction as consumer preferences shift toward hard seltzers and craft spirits (AInvest, 2025). Over the past five years, industry revenue has declined at a compound annual growth rate of 3.8%, reaching $7.2 billion in 2025 (AInvest, 2025). The number of operating craft breweries in the U.S. dropped to 9,269 by June 2025, down 1% from the previous year, with closures outpacing new openings (Brewers Association, 2025).
Rising Costs and Liquidity Challenges Hit Breweries
Structural vulnerabilities are intensifying as rising tariffs on aluminum and inflationary pressures squeeze profit margins. A 25% tariff on imported aluminum has disproportionately affected smaller breweries reliant on cost-efficient packaging (AInvest, 2025). High-profile bankruptcies, including 21st Amendment Brewery and Bosque Brewing Company, highlight the sector’s fragility (AInvest, 2025). Craft beer sales declined by 4% in 2024, with volume dropping an additional 5% by mid-2025 (AInvest, 2025).
Iconic Breweries Close Amid Industry Consolidation
Several iconic breweries have permanently closed their doors in 2025. Pike Brewing’s Pike Pub in Seattle shut down after 35 years of operation, while Iron Hill Brewery LLC closed all 16 of its brewpub and restaurant locations in five Eastern states, filing for Chapter 7 bankruptcy in October (TheStreet, 2025; Washington Beer Blog, 2025). Beverage** also abruptly shut down its five taproom locations and production facility, owing over half a million dollars to its landlord and leaving up to 500 workers unemployed (VinePair, 2025).
Consumer Trends: Health, Premiumization, and Innovation
A third of surveyed consumers plan to choose healthier food and drinks, and 25% aim to moderate their alcohol consumption (CGA, 2025). Non-alcoholic and lower-ABV craft beers are gaining traction, with non-alcoholic beer sales up 33.7% year-over-year on-premise and non-alcoholic IPAs and stouts seeing sales increases of over 170% and 130%, respectively (CGA, 2025). Craft brewers are responding by diversifying offerings, focusing on premium experiences, and embracing health-conscious trends (CGA, 2025).
Global Market Growth and Regional Differences
While the U.S. market contracts, the global craft beer market is projected to grow at a CAGR of 8.74% from 2025 to 2033, reaching $329.7 billion by 2033 (IMARC Group, 2025). Europe currently dominates the market, holding a 38.1% share in 2024 (IMARC Group, 2025). The Asia-Pacific region is also expanding, driven by rising disposable incomes and urbanization (IMARC Group, 2025).
Future Outlook: Direct-to-Consumer and Experiential Channels
Craft beer revenue is forecast to grow at a modest 1.6% CAGR through 2030, powered by breweries investing in direct-to-consumer e-commerce, online shops, local delivery, and subscription programs (IBISWorld, 2025). Ales, including IPAs, pale ales, stouts, and porters, continue to dominate revenue, but growth has slowed as drinkers report IPA fatigue and shift toward lighter alternatives (IBISWorld, 2025).