Michelob Ultra Becomes Top-Selling Beer in the US
Michelob Ultra has overtaken all competitors to become the top-selling beer by volume in the United States for the first time in 2025, according to Anheuser-Busch InBev’s third-quarter financial results (American Craft Beer, November 3, 2025). Despite a 3.7% decline in overall organic volume, the company reported modest revenue growth, driven by premium brands and strategic pricing. Michelob Ultra Zero, the company’s non-alcoholic offering, is now the fastest-growing no-alcohol beer brand in the US this year (American Craft Beer, November 3, 2025). CEO Michel Doukeris emphasized the company’s focus on adapting to shifting consumer preferences, including increased investment in non-alcoholic beers, canned cocktails, and hard seltzers (American Craft Beer, November 3, 2025).
Craft Beer Market Growth and Consolidation
The global craft beer market is projected to reach $111.3 billion in 2025, with a compound annual growth rate (CAGR) of 9.9% through 2032 (MetaStat Insight, 2025). North America remains a key region, where craft beer has transitioned from a niche to a mainstream choice. However, the US craft beer sector is experiencing significant consolidation, with closures outpacing new openings for the first time since 2005. In 2024, US craft brewers produced 23.1 million barrels, a 4% decline from 2023 (Beer Street Journal, November 4, 2025). The Brewers Association reported that the number of operating craft breweries in June 2025 was down 1% from the previous year (Brewers Association, 2025).
Premium Beer Segment Drives Growth in India
United Breweries, India’s largest beer producer, reported strong growth in its premium segment, with a 17% increase in the July-September quarter and a 33% rise in the first half of 2025-26 (CNBC-TV18, November 4, 2025). Flagship brands such as Kingfisher Ultra, Ultra Max, and Heineken Silver are leading the charge, with Heineken Silver alone growing by 34% (CNBC-TV18, November 4, 2025). The company has expanded its retail presence, with coolers now in 37,000 stores, up from 15,000 earlier (CNBC-TV18, November 4, 2025). Despite input cost pressures from higher barley and aluminium prices, United Breweries expects margins to improve from the third quarter onwards (CNBC-TV18, November 4, 2025).
Non-Alcoholic and Cannabis-Infused Beverages Gain Momentum
Health-conscious consumers are increasingly choosing non-alcoholic and low-alcohol options, driving growth for brands like Bavaria, which has appointed Tokyo-based agency UltraSuperNew as its creative partner for the Japanese market (Campaign Brief Asia, November 4, 2025). In the US, cannabis-infused beverages are poised to gain a share of the retail shelf space in 2025, with over $70 million in sales tracked so far (Hop Culture, November 4, 2025). Minnesota’s new law allowing taprooms to serve THC-infused drinks is bridging the gap between the craft beer and cannabis industries (Hop Culture, November 4, 2025).
On-Premise Beer Trends: Quality, Value, and Pairings
CGA’s On Premise Impact Report highlights steady consumer trends in early 2025, with over 75% of consumers dining out in January and 50% visiting bars for drinks (Craft Brewing Business, November 4, 2025). A third of consumers plan to choose healthier food and drinks, and 25% aim to moderate their alcohol consumption (Craft Brewing Business, November 4, 2025). The premiumization trend signals a preference for superior experiences, with nearly 50% of on-premise visitors prioritizing good value and 30% seeking deals and promotions (Craft Brewing Business, November 4, 2025). Unique food and drink pairings represent a strong opportunity for craft brewers to engage consumers (Craft Brewing Business, November 4, 2025).