Craft Beer Market Growth Accelerates
The global craft beer market is projected to reach USD 329.7 billion by 2033, growing at a compound annual growth rate (CAGR) of 8.74% from 2025 to 2033 (IMARC Group, 2025). Europe currently leads the market, accounting for over 38.1% of global craft beer sales in 2024 (IMARC Group, 2025). This expansion is fueled by rising consumer demand for unique, flavorful, and artisanal beers, as well as increasing interest in beer tourism and premium experiences (IMARC Group, 2025).
Health-Conscious Consumers Drive Innovation
A growing segment of beer drinkers is prioritizing health, with 33.7% year-over-year growth in non-alcoholic beer sales on-premise in the U.S. (CGA, 2025). Sales of non-alcoholic IPAs and stouts have surged by over 170% and 130%, respectively (CGA, 2025). Craft brewers are responding by expanding their offerings of lower-ABV and non-alcoholic options, catering to consumers who want to moderate their alcohol intake without sacrificing taste (CGA, 2025).
Challenges for Craft Breweries
Despite market growth, the craft beer industry faces significant headwinds. Full Pint Beer, a once-prominent Pittsburgh brewery, has filed for Chapter 11 bankruptcy for the second time in six years, citing inflation, rising ingredient and labor costs, and shifting consumer preferences (Breweries in PA, 2025). Nationally, craft beer volume is down about 5% year-over-year, and the total number of operating breweries has declined (Breweries in PA, 2025). The tightening market and smaller margins are making it harder for even well-known breweries to survive (Breweries in PA, 2025).
Aluminum Tariffs Impact Production
Aluminum tariffs have increased prices by more than 25%, forcing many craft brewers to absorb losses or cut back on niche beer production (Packaging Digest, 2025). This cost pressure is particularly challenging for smaller breweries that rely on aluminum cans for packaging (Packaging Digest, 2025).
Strong Ale Festival Highlights Collaboration
Pizza Port’s 27th annual Strong Ale Festival, set for December 5 and 6 in Carlsbad, California, will feature over 60 taps, including collaboration beers with breweries like 3 Floyds Brewing, Ghost Town Brewing, and Urban Roots Brewery (San Diego Beer News, 2025). The event showcases the industry’s spirit of innovation and collaboration, with brewers creating specialty beers such as a rum barrel-aged pastry stout and a triple IPA (San Diego Beer News, 2025).
Emerging Trends in Craft Beer
In 2025, trends include the rise of cold IPAs, which use lager yeast in hoppy beer styles, and the continued popularity of sessionable and non-alcoholic beers (Escarpment Labs, 2025). Brewers are also experimenting with exotic spices, heirloom grains, and tea infusions to create unique flavor profiles (Eureka Heights Brewery, 2025). The craft beer industry is increasingly seen as a reflection of lifestyle and community values, with younger generations driving demand for authenticity and innovation (Metastat Insight, 2025).
On-Premise Beer Consumption Trends
Draft beer continues to dominate the on-premise market, accounting for 52.3% of all out-of-home beer volumes in the U.S. in 2024 (CGA by NIQ, 2025). The number of draft beer distribution points has risen by 8.1% in the past year, more than triple the increase for packaged beer (CGA by NIQ, 2025). Craft brewers are diversifying their offerings with family-friendly environments, cocktail menus, and unique taproom experiences to attract a broader audience (Craft Brewing Business, 2025).