October 2025 Shows Decline in Domestic Beer Production
Domestic brewers in the United States reported a removal of 11 million barrels of beer in October 2025, marking a 3.8% decline compared to October 2024. This decrease continues a trend of year-long decline in beer production volume, signaling challenges especially for craft brewers struggling with lower demand (Craft Brewing Business, 2025).
Craft Beer Market Projected to Grow Despite Present Dip
Globally, the craft beer market maintained considerable long-term growth potential, with an estimated compound annual growth rate (CAGR) of 8.74% from 2025 to 2033. Valued at around USD 142.6 billion in 2024, the market is forecasted to more than double, reaching USD 329.7 billion by 2033. This expansion is driven by increasing consumer interest in distinctive and flavorful beers, greater demand for artisanal and local brews, and innovative marketing targeting millennials and health-conscious consumers. Europe currently dominates with over 38.1% market share (IMARC Group, 2025).
Industry Pressures Lead to Brewery Closures and Bankruptcies
The U.S. craft beer industry has been contracting, with the total number of craft breweries falling from 9,747 in 2023 to 9,269 by mid-2025, reflecting closures driven by rising labor and production costs, inflation, and changing alcohol consumption habits. Notable closures include several Chapter 7 bankruptcies and two closed locations of Bosque Brewing Company in New Mexico following a Chapter 11 filing. This consolidation reveals growing financial challenges within the sector (TheStreet, 2025).
Shifting Consumer Preferences Favor Health and Novelty
Consumer trends in the on-premise beer market highlight growing health consciousness, with about one-third of consumers aiming to choose healthier beverages and a quarter moderating alcohol intake. This behavior is boosting demand for lower-ABV and non-alcoholic craft beers, with non-alcoholic beer sales up 33.7% year-over-year on-premise. IPAs and stouts with no alcohol are particularly popular, showing surges of over 170% and 130%, respectively. Craft brewers are increasingly diversifying their offerings to include family-friendly taprooms and complementary cocktail menus, responding to evolving tastes (Craft Brewing Business, 2025; CGA On Premise Report, 2025).
Emerging Trends Include Hyper-Localization and Experimental Brewing
Craft breweries continue to leverage hyper-localization by sourcing ingredients from nearby farms, producing beers that reflect regional flavors. Experimental methods such as wild fermentation and hybrid styles gain traction, offering consumers unique taste experiences. Sustainability remains a priority as brewers adopt environmentally friendly practices. Limited releases and collaborations are utilized to generate exclusivity and sustain consumer interest amid a competitive marketplace (Tastewise, 2025).
Gen Z and the ‘Sober Curious’ Movement Impact the Market
The closure of Frontier Brewing Company in Casper, Wyoming, underscores challenges in attracting younger consumers, especially Gen Z, who display growing interest in sobriety or reduced alcohol consumption. Some breweries are developing alternative beverage lines such as zero-sugar sodas with adaptogens and nootropics to capture health-conscious audiences. Despite these pressures, regional loyalty, like in Wyoming, supports local brewery resilience (Cowboy State Daily, 2025).
Brand Growth Amidst Market Challenges
In contrast to craft sector challenges, some major brands continue to grow. Busch Light, for example, is reported as the second-fastest growing beer in the U.S., expanding sales in 46 states year-to-date, reflecting how large players benefit from broad distribution and strong marketing (Anheuser-Busch, 2025).
In summary, the global and U.S. craft beer industry faces a complex environment with declining production volumes and brewery closures tempered by robust long-term growth forecasts, shifting consumer preferences toward health and novelty, and strategic innovation in products and marketing.