Robust Growth Projected in Craft Beer Market through 2033
The global craft beer market, valued at USD 142.6 billion in 2024, is projected to more than double by 2033, reaching USD 329.7 billion with a compound annual growth rate (CAGR) of 8.74%. Europe remains the dominant region, accounting for approximately 38.1% of market share, fueled by expanding microbreweries, rising demand for premium and unique beer flavors, and strong beer consumption traditions across the continent (IMARC Group, 2025). Rising consumer preference for artisanal and locally crafted beers, coupled with innovative marketing strategies targeting millennials and health-conscious drinkers, serve as major drivers of this expansion.
Industry Headwinds and Regional Dynamics in the United States
Despite the global optimism, the U.S. craft beer sector faces notable challenges in 2025. Data from NielsenIQ and the Brewers Association indicates a 4.1% decline in off-premise craft beer volume, closely mirroring the overall beer category’s 4.2% drop. The number of operational craft breweries has contracted by 1% to 9,269, with microbreweries experiencing a 3% decline in count. Taprooms and brewpubs remain more resilient, with production declines being less severe in these on-site sales models. Half of surveyed brewers report production growth, particularly smaller breweries producing under 1,000 barrels annually, highlighting the durability of hyperlocal and experiential beer consumption trends (Brewers Association, 2025).
New Launches and Market Revitalization Efforts in the UK
The UK beer scene continues to develop with several noteworthy brand revitalizations and expansions. Independent brewery T&R Theakston has refreshed the branding of Brennan’s Irish Stout aiming to strengthen market appeal. Additionally, Belhaven Brewery has launched a new bold lager named Belter, following a successful early trial in Scottish pubs, indicating a strategic push to diversify offerings in the competitive lager segment. Indie Rabble Brewing Co. in Berkshire is celebrating its largest Oktoberfest ever, reflecting ongoing consumer enthusiasm for beer festivals and culturally resonant events (Beer Guild, 2025).
Notable Brewery Developments and Closures Internationally
In the U.S., 21st Amendment Brewery of the San Francisco Bay Area announced plans to gradually cease operations after 25 years, signaling the challenges even established craft breweries face amid shifting market dynamics. Concurrently, Bell’s Brewery in Kalamazoo is investing $20 million to upgrade its facilities and expand its beer garden, demonstrating continued confidence and investment in craft beer infrastructure despite broader headwinds. In Canada, The Beer Store has announced closures of two locations in Ontario, signaling possible shifts in retail distribution channels (Planet Beer, 2025).
Consumer Safety and Regulatory Concerns
An emerging concern in the U.S. market is the widespread contamination of beer with per- and polyfluoroalkyl substances (PFAS), biochemicals known as “forever chemicals.” A recent study detected PFAS in 95% of tested beers, with contamination primarily sourced from brewing water. This raises potential regulatory and consumer trust issues that could influence future industry practices and ingredient sourcing strategies (Natural News, 2025).
Trends Shaping the 2025 Craft Beer Landscape
Industry analysts forecast continued evolution in beer styles, with cold IPAs — hoppy beers brewed with lager yeast — gaining traction. The craft beer sector is anticipated to experiment more boldly with hybrids and yeast strains, reflecting a consumer appetite for novel experiences. Sustainability initiatives remain a key strategic focus for breweries seeking to align with growing environmental consciousness among consumers (Escarpment Labs, 2025).