Craft Beer Industry Faces Closures and Shifts in 2025: Key Trends and Market Insights
The American craft beer sector grappled with persistent challenges throughout 2025, marked by more brewery closures than openings, signaling a maturing and consolidating market (American Craft Beer, December 22, 2025, https://www.americancraftbeer.com/american-craft-beer-industry-faces-uncertain-future-christmas-2025/). Closings outpaced new launches, driven by rising costs for ingredients, packaging, insurance, and labor that squeezed margins for small producers (American Craft Beer, December 22, 2025, https://www.americancraftbeer.com/american-craft-beer-industry-faces-uncertain-future-christmas-2025/).
Consolidation Accelerates Among Major Players
Anheuser-Busch InBev continued divesting its craft portfolio, with New Belgium Brewery matching volumes of its remaining brands by mid-2025, followed by plans to close three megaplants (VinePair, 2025, https://vinepair.com/articles/hop-take-beer-industry-news-stories-2025-lookback/). Pabst conducted layoffs totaling half its 2025 workforce, including the lead on a new light-lager launch (VinePair, 2025, https://vinepair.com/articles/hop-take-beer-industry-news-stories-2025-lookback/). Molson Coors announced 400 corporate job cuts and exited certain marketing operations (VinePair, 2025, https://vinepair.com/articles/hop-take-beer-industry-news-stories-2025-lookback/).
M&A activity slowed significantly in 2025, reflecting cautious investment amid uncertainty (Beer Business Daily, December 19, 2025, https://beernet.com). Alamo Beer Co. bucked the trend with its acquisition by SKJ Capital this past week (VinePair, 2025, https://vinepair.com/articles/hop-take-beer-industry-news-stories-2025-lookback/).
Consumer Trends Drive Innovation in Low-ABV and Non-Alcoholic Beers
On-premise data reveals non-alcoholic beer exploding with 33.7% year-over-year growth, outpacing traditional beer, particularly non-alcoholic IPAs up 170% and stouts up 130% (Craft Brewing Business, 2025, https://www.craftbrewingbusiness.com/featured/navigating-the-u-s-on-premise-consumer-in-2025-key-insights-for-craft-brewers/). A third of consumers plan healthier choices, with 25% moderating alcohol intake, boosting demand for low-ABV options (Craft Brewing Business, 2025, https://www.craftbrewingbusiness.com/featured/navigating-the-u-s-on-premise-consumer-in-2025-key-insights-for-craft-brewers/).
IPAs, generating 33.8% of craft revenue, faced slowdowns in 2024-2025 due to consumer fatigue shifting toward lighter styles (IBISWorld, 2025, https://www.ibisworld.com/united-states/industry/craft-beer-production/4302/). Breweries adapted by focusing on taprooms, lagers, low-ABV, and non-alcoholic variants amid saturated shelf space (American Craft Beer, December 22, 2025, https://www.americancraftbeer.com/american-craft-beer-industry-faces-uncertain-future-christmas-2025/).
Direct-to-Consumer Channels Fuel Modest Growth
Craft beer revenue is forecast to grow at a 1.6% CAGR through 2030 via direct-to-consumer e-commerce, online shops, delivery, and subscriptions, bypassing distributors for better margins and data insights (IBISWorld, 2025, https://www.ibisworld.com/united-states/industry/craft-beer-production/4302/). Employment rose nearly 6,000 jobs from 2020-2025, enhancing taproom experiences despite profit pressures (IBISWorld, 2025, https://www.ibisworld.com/united-states/industry/craft-beer-production/4302/).
The Brewers Association’s 2025 midyear report noted 9,269 operating craft breweries in June, down 1% year-over-year, with headwinds from changing behaviors, inflation, and competition (Brewers Association, 2025, https://www.brewersassociation.org/association-news/2025-midyear-report/). Draft beer share grew to 52.3% of on-premise volumes, up 8.1% in distribution points (Hop Culture, 2025, https://www.hopculture.com/top-craft-beer-trends-2025/).
Supply Stabilization and New Initiatives Emerge
USDA’s annual hops report indicated a ~20-million-pound surplus with net acreage declines in 2025, stabilizing supply (VinePair, 2025, https://vinepair.com/articles/hop-take-beer-industry-news-stories-2025-lookback/). The Clean Alcohol Collective launched for ingredient transparency, co-led by Father’s Brewing (VinePair, 2025, https://vinepair.com/articles/hop-take-beer-industry-news-stories-2025-lookback/).
Ready-to-drink (RTD) beverages gained 0.4 percentage points market share on-premise, challenging beer dominance (Craft Brewing Business, 2025, https://www.craftbrewingbusiness.com/featured/navigating-the-u-s-on-premise-consumer-in-2025-key-insights-for-craft-brewers/). Premiumization saw 20% of consumers opting for higher-quality options (Craft Brewing Business, 2025, https://www.craftbrewingbusiness.com/featured/navigating-the-u-s-on-premise-consumer-in-2025-key-insights-for-craft-brewers/).