US Craft Beer Industry Navigates Mixed Fortunes in 2025
The US craft beer industry shows a contrasting picture as it contends with a decline in overall volume alongside pockets of optimism among smaller brewers. The Brewers Association reported a projected 5% year-over-year drop in craft beer volume for 2025 compared to 2024, reflecting closures and production decreases across the sector. However, survey respondents have exhibited cautious optimism, especially among taproom and brewpub operators who outperformed distribution-based models by 1-2% in volume growth during the first half of the year. Nielsen IQ data supports this trend, showing a 4.1% volume decline for BA-defined craft beer in H1 2025, slightly better than the overall beer market’s 4.2% drop (The Drinks Business, 2025).
The contraction on off-trade channels is linked to intensified retailer and wholesaler rationalisation, escalating shelf space competition, and tighter consumer spending. Despite these pressures, increased demand for premium and innovative flavoured beers is forecast to help sustain the industry over the medium term (The Drinks Business, 2025).
Global Craft Beer Market Set for Robust Expansion
Contrasting with US challenges, the worldwide craft beer market is on a trajectory of significant growth, with market research forecasting a size of approximately $111.3 billion in 2025, expanding at a compound annual growth rate (CAGR) nearing 9.9% through 2032. This growth is underpinned by rising consumer preference for unique flavours and small-batch brewing, alongside digital distribution innovations and collaborative ventures between brewers and hospitality sectors (MetaStat Insight, 2025).
Europe leads the global craft beer market with a 38.1% share, driven by its long-standing beer culture, expanding microbreweries, and strong demand for premium products. North America, especially the US and Canada, is seeing craft beer evolve from niche to mainstream, with consumers increasingly valuing artisanal and locally produced varieties (IMARC Group, 2025).
Consumer Trends and On-Premise Opportunities
Consistent on-premise visitation rates and evolving consumer behaviors present both challenges and opportunities for craft brewers. According to CGA by NielsenIQ, over 75% of consumers dined out as of early 2025, with 50% visiting bars, underscoring on-premise venues’ continued importance. Notably, there is a clear shift toward health-conscious consumption patterns, as a growing segment opts for lower-alcohol or non-alcoholic beer varieties amid broader moderation trends. About 20% of consumers prioritize premium experiences, indicating demand for high-quality and unique brews remains strong, even as nearly half emphasize value for money (Craft Brewing Business, 2025).
Furthermore, strategic food and beer pairings emerge as a compelling consumer engagement avenue, enhancing the on-premise experience and creating loyalty (Craft Brewing Business, 2025).
Sustainability as a Brewing Imperative
Sustainability has become a pivotal aspect of brewing strategies globally. Research highlights packaging as the most carbon-intensive stage of beer production, accounting for 40% of greenhouse gas emissions. Innovations such as shifting from single-use glass bottles to reusable steel kegs significantly reduce the carbon footprint—from 0.45 kilograms to 0.05 kilograms CO2 per liter. Brewers are increasingly embedding environmental considerations in production and supply chains to meet consumer expectations and regulatory demands (University of Florida, 2025).
Initiatives and Collaborations Bolstering the Industry
Community and collaborative projects also feature prominently in the craft sector’s response to external challenges. Over 200 breweries worldwide have joined the “We Love LA” initiative, producing unique beers whose proceeds support wildfire relief efforts in Los Angeles. Brewers retain creative freedom over styles while uniting under a common branding and donation mechanism, exemplifying industry solidarity and social responsibility (The Drinks Business, 2025).
Additionally, established craft breweries like Stone Brewing celebrate milestone anniversaries with large-scale events showcasing diverse brews, highlighting the cultural and social vibrancy still driving this segment (San Diego Beer News, 2025).
These multifaceted developments illustrate an industry balancing contraction in certain markets with innovation, sustainability focus, and strong community ties aimed at long-term resilience.