The US craft beer industry is experiencing a contraction in 2025, marked by a decline in the number of operating breweries, production volume, and shifting market dynamics. According to the Brewers Association’s 2025 Midyear Market Report, the total count of craft breweries operating in the United States fell to 9,269 in June 2025, down 1% from 9,352 in June 2024, continuing a multi-year trend of closures exceeding openings (Brewers Association, 2025). This decline represents the fourth consecutive year of fewer new breweries opening, with 501 closures outpacing 434 openings in 2024.
Alongside the decrease in brewery numbers, craft beer volume suffered a significant drop of 5% year-over-year compared to 2024, reflecting challenges in both production and consumer demand (Brewers Association, 2025). Retail and wholesaler rationalization has contributed to these pressures, with increased competition for limited off-trade shelf space and consumers spending more cautiously in traditional retail outlets (The Drinks Business, 2025). Nielsen IQ data echoes these trends, showing craft beer volumes down 4.1% during the first half of 2025, slightly underperforming the overall beer market which declined 4.2% (The Drinks Business, 2025).
Despite industry-wide contractions, some segments are demonstrating resilience. Breweries with on-site sales models, such as taprooms and brewpubs, have slightly outperformed distribution-focused microbreweries by 1-2% in sales during early 2025. This suggests that direct-to-consumer experiences are increasingly important in a challenging market (The Drinks Business, 2025). Moreover, nearly half of surveyed brewers remain optimistic about growth potential, particularly smaller operations that emphasize localized and personalized customer engagement (Brewers Association, 2025).
Internationally, craft beer remains a growth sector. The global craft beer market is projected to expand robustly from USD 110.94 billion in 2025 to USD 263.73 billion by 2034, a compound annual growth rate (CAGR) of 10.1% fueled by rising consumer interest in unique flavors and ingredients, as well as beer tourism (Towards FNB, 2025). Asia Pacific is identified as the largest regional market, while off-trade sales channels such as supermarkets, liquor stores, and e-commerce platforms are driving accessibility and convenience, contributing to off-trade segment growth (Towards FNB, 2025).
In the United States, distribution models are adapting as digitalization advances. Brewery management software integration, including cloud-based platforms and customer relationship management tools, is enhancing operational efficiencies and customer satisfaction. Such technological adoption facilitates flexible brewing operations tailored to brewery scale and supports loyalty initiatives and direct-to-consumer sales channels, potentially helping brewers navigate the current market challenges (Washington Beer Blog, 2025).
Meanwhile, iconic beer brands continue to expand geographically. Yuengling, America’s oldest brewery, commenced distribution in Michigan on August 11, 2025, marking a significant market expansion to areas including Ann Arbor, Detroit, and East Lansing with a statewide rollout planned. This move showcases enduring demand for established beer brands even as the craft segment faces headwinds (CBS News Detroit, 2025).
State-level recognition of craft brewers is also notable. Virginia Governor Youngkin proclaimed August 2025 as Virginia Craft Beer Month, highlighting the economic and cultural contributions of craft breweries within the Commonwealth as the industry strives for vitality amid broader challenges (Virginia Craft Brewers Association, 2025).