Craft Beer Market Growth and Consumer Trends in 2025
The global craft beer market is projected to expand significantly, with a compound annual growth rate (CAGR) of 8.74% from 2025 to 2033, reaching a valuation of approximately USD 329.7 billion by 2033. Europe remains the dominant market, accounting for over 38% of the total market share in 2024. This growth is primarily fueled by rising consumer demand for unique, flavorful beers and a strong preference for locally brewed, artisanal products. Furthermore, there is a noticeable shift towards health-conscious options such as low-calorie and organic craft beers, aligned with broader wellness trends influencing alcohol consumption globally (IMARC Group, 2025).
Health-Conscious Innovations and Premiumization
Health trends are reshaping the beer industry, with non-alcoholic (NA) and lower-alcohol-by-volume (ABV) craft beers experiencing remarkable growth. Non-alcoholic beer sales have surged by 33.7% year-over-year in on-premise venues, outpacing traditional beer sales. Particular categories like NA IPAs and stouts have grown even faster, showing increases above 130%. This rise caters to consumers moderating alcohol intake and seeking healthier lifestyle choices, providing craft brewers with new market opportunities through expanded product lines (Craft Brewing Business, 2025).
At the same time, premiumization remains strong, with approximately 20% of consumers willing to pay more for higher-quality craft beer experiences. Breweries are adapting by emphasizing premium and unique brews, including innovations in canned cocktails and beer-based ready-to-drink products, thus diversifying their portfolios to meet evolving consumer preferences (Craft Brewing Business, 2025).
Market Challenges and Industry Consolidation
Despite promising growth in certain segments, the overall craft beer industry faces ongoing challenges such as market saturation and shifting consumer behavior post-pandemic. Craft beer volumes are experiencing slight declines, estimated between 1% to 2%, with distributors and retailers simplifying their offerings, which pressures smaller breweries. Industry consolidation continues as larger companies acquire smaller brands to strengthen market position. The number of operating craft breweries decreased by about 1% as of mid-2025, highlighting this rationalization trend (Brewers Association, 2025; OH Bev, 2025).
Regulatory Developments Impacting Beer and Associated Markets
New federal regulations on hemp beverages set to take effect by November 2026 impose strict potency limits that will effectively ban most current hemp-infused drinks, affecting a multi-billion-dollar sector closely related to craft brewing innovation. Also, legislative changes such as estate tasting permits and extended direct shipping privileges for small distillers encourage a more flexible market environment for craft alcohol producers, including some brewers expanding their portfolios (Nutter, 2025).
Emerging Product Trends: Cold IPAs and Packaging Innovations
Cold IPAs, which blend lager yeast with hoppy beer styles, are gaining traction as part of the ongoing evolution of IPA varieties popular in the craft sector. This style aligns with consumer interest in innovative, refreshing profiles. Packaging innovation also supports market growth; for example, New Belgium’s Voodoo Ranger has boosted craft beer sales by introducing single-serve can formats, which appeal to convenience-driven consumers and expand into convenience-store channels (Escarpment Labs, 2025; BevIndustry, 2025).
On-Premise and Draft Beer Market Observations
Draft beer continues to hold a significant share of the on-premise beer market, making up over half of out-of-home beer volumes in the U.S. However, draft volume trends slightly decline year-over-year, while packaged beer and ready-to-drink options gain popularity. Efficiency and frictionless transactions are emerging as key factors in on-premise profitability for breweries and venues (BeerBoard, 2025; Brewbound, 2025).
Overall, the beer industry in 2025 balances robust growth in craft and health-oriented segments with challenges from market consolidation and regulatory shifts, compelling brewers to innovate both their products and market approaches to sustain demand.