Craft Beer Industry Faces Closures and Shifts in 2025: Trends Toward Adaptation and Non-Alcoholic Growth
The American craft beer sector ended 2025 with more closures than openings, signaling persistent headwinds amid rising costs and market saturation (American Craft Beer, December 22, 2025, https://www.americancraftbeer.com/american-craft-beer-industry-faces-uncertain-future-christmas-2025/). Breweries operating in June 2025 totaled 9,269, down 1% from the prior year as economic pressures mounted (Brewers Association, 2025, https://www.brewersassociation.org/association-news/2025-midyear-report/).
Survival Strategies Amid Declining Volumes
Many surviving craft breweries scaled back distribution to prioritize taprooms, diversified into lagers, low-ABV beers, and non-alcoholic options, and leaned on community events for relevance (American Craft Beer, December 22, 2025, https://www.americancraftbeer.com/american-craft-beer-industry-faces-uncertain-future-christmas-2025/). **Retailers and distributors trimmed offerings**, contributing to consolidation as larger players acquired smaller operations (OhBev, 2025, https://www.ohbev.com/blog/beer-market-forecasts-and-trends). Craft volumes saw an estimated -1% to -2% drop in 2024, a trend carrying into 2025 with **fiercer competition for shelf space** from multinational “craft-adjacent” brands (OhBev, 2025, https://www.ohbev.com/blog/beer-market-forecasts-and-trends).
On-Premise Trends Favor Innovation
In the U.S. on-premise market, **non-alcoholic beer exploded with 33.7% year-over-year growth**, outpacing traditional beer, driven by health-conscious consumers where 25% plan to moderate alcohol intake (Craft Brewing Business, 2025, https://www.craftbrewingbusiness.com/featured/navigating-the-u-s-on-premise-consumer-in-2025-key-insights-for-craft-brewers/). Non-alcoholic IPAs and stouts surged over 170% and 130% respectively, while **draft beer captured 52.3% of volumes**, up due to an 8.1% rise in distribution points (Craft Brewing Business, 2025, https://www.craftbrewingbusiness.com/featured/navigating-the-u-s-on-premise-consumer-in-2025-key-insights-for-craft-brewers/; Hop Culture, 2025, https://www.hopculture.com/top-craft-beer-trends-2025/). Ready-to-drink beverages gained 0.4 percentage points, prompting craft brewers to explore beer-based RTDs (Craft Brewing Business, 2025, https://www.craftbrewingbusiness.com/featured/navigating-the-u-s-on-premise-consumer-in-2025-key-insights-for-craft-brewers/). About 20% of consumers seek premium options, boosting demand for unique, high-quality brews (Craft Brewing Business, 2025, https://www.craftbrewingbusiness.com/featured/navigating-the-u-s-on-premise-consumer-in-2025-key-insights-for-craft-brewers/). Breweries enhanced taprooms with family-friendly features and cocktail menus to broaden appeal (Craft Brewing Business, 2025, https://www.craftbrewingbusiness.com/featured/navigating-the-u-s-on-premise-consumer-in-2025-key-insights-for-craft-brewers/).
Big Players Restructure, Hops Supply Stabilizes
Anheuser-Busch InBev divested craft brands and announced closures of three megaplants, while Pabst executed major layoffs affecting half its 2025 workforce (VinePair, 2025, https://vinepair.com/articles/hop-take-beer-industry-news-stories-2025-lookback/). **Molson Coors cut 400 corporate jobs** and shuttered Leinenkugel’s operations (VinePair, 2025, https://vinepair.com/articles/hop-take-beer-industry-news-stories-2025-lookback/). The USDA hops report noted a ~20-million-pound surplus but net acreage declines in 2025, hinting at stabilizing supply (VinePair, 2025, https://vinepair.com/articles/hop-take-beer-industry-news-stories-2025-lookback/). Alamo Beer Co. found a buyer in SKJ Capital, providing a rare positive amid uncertainty (VinePair, 2025, https://vinepair.com/articles/hop-take-beer-industry-news-stories-2025-lookback/).
Health and Sustainability Drive Future Offerings
**Lower-ABV, low-calorie, and non-alcoholic beers** target young professionals and older demographics seeking sessionable options without health drawbacks (OhBev, 2025, https://www.ohbev.com/blog/beer-market-forecasts-and-trends). The global beer market, valued at $804.65 billion in 2025, projects growth to $998.98 billion by 2030 via premiumization and innovation (Beer Connoisseur, 2025, https://beerconnoisseur.com/beer-market-growth-trends-2025-2030/). Brewers shifted from extreme styles to approachable flagships, emphasizing ingredient provenance and environmental selling points (SevenFifty Daily, 2025, https://daily.sevenfifty.com/6-beer-industry-trends-to-watch-in-2025/). Changing behaviors, inflation, tariffs, and competition compounded challenges, yet successes persisted through flexibility (Brewers Association, 2025, https://www.brewersassociation.org/association-news/the-2025-year-in-beer/).