Craft Beer Market Forecast and Consumer Trends
The global craft beer market is poised for robust expansion, with valuations reaching USD 142.6 billion in 2024 and projected to more than double to USD 329.7 billion by 2033, representing a compound annual growth rate (CAGR) of 8.74% (IMARC Group, 2025). This growth is driven primarily by consumer demand for unique and flavorful beers, increased interest in artisanal and locally brewed beverages, and the rise in beer tourism. Moreover, health-conscious trends are shaping new preferences, with greater demand for low-calorie, organic, and low- or non-alcoholic options attracting a broader consumer base (IMARC Group, 2025). Europe currently leads this market, holding over 38% share in 2024, while rising disposable incomes and urbanization in Asia Pacific are propelling market expansion there (IMARC Group, 2025).
Shifting Consumption Dynamics in the U.S. On-Premise Market
U.S. draft beer volumes continue to decline year-over-year, with a notable drop in on-premise draft sales around major holidays such as Thanksgiving Eve, reflecting changing consumer behavior and the industry’s need for operational efficiency and frictionless transactions in bars and restaurants (BeerBoard, 2025; Brewbound, 2025). Despite this, non-alcoholic beer is experiencing substantial growth, with on-premise sales increasing by 33.7% year-over-year. Notably, non-alcoholic IPAs and stouts show sales growth above 130%, underscoring the surge in health-conscious consumers moderating alcohol intake (CGA On Premise Impact Report, 2025).
The growth of premiumization remains strong, with approximately 20% of consumers opting for higher-quality beverages, presenting craft brewers with opportunities to innovate with premium, unique brews and expand into RTD (ready-to-drink) cocktails and beer-based offerings (CGA, 2025). Additionally, breweries are diversifying taproom experiences to attract wider audiences, including family-friendly environments and cocktail menus (CGA, 2025).
Challenges and Company Developments
The large publicly traded macrobrewers in the U.S. continue to face financial headwinds with significant losses reported in Q3 2025, although Anheuser-Busch InBev (ABI) outperformed others due to the success of brands like Michelob Ultra and Cutwater (VinePair, 2025). ABI is reportedly planning a $700-million acquisition of BeatBox, signaling strategic moves to diversify its portfolio amid industry challenges (Beer Business Daily, 2025).
Meanwhile, pioneer craft brewing company Rogue Ales & Spirits in Oregon has ceased operations abruptly after 40 years, closing its production and taproom facilities due to financial difficulties including significant unpaid debts. This highlights ongoing pressures facing mid-size craft brewers amidst market consolidation and changing consumer preferences (VinePair, 2025).
Innovative Trends and Localization
Hyper-localization continues to gain traction, with craft breweries sourcing ingredients such as hops and fruits from local farms to enhance unique regional flavors, aligning with trends favoring authenticity and sustainability (Tastewise, 2025). Experimental approaches including wild fermentation and hybrid styles are expanding the flavor profiles available, while limited edition releases drive consumer interest through exclusivity (Tastewise, 2025).
Brewing science innovations, such as cold IPAs using lager yeasts, are gaining popularity, representing evolving consumer tastes for sessionable yet flavor-rich options (Escarpment Labs, 2025). Sustainability practices are also increasingly integrated into brewery operations, matching consumer demand and operational efficiencies (Tastewise, 2025).
Regulatory and Market Access Updates
Federal regulatory changes impacting the beverage alcohol industry include a new definition of hemp with stringent potency limits that will affect hemp-based beverages starting November 2026, challenging some craft beverage producers to adapt (Nutter, 2025). Additionally, adjustments in direct shipping laws, such as in California, provide extended shipping privileges to smaller distillers, potentially benefiting artisanal producers expanding direct-to-consumer channels (Nutter, 2025).
Key Takeaways for Industry Stakeholders
The beer industry in late 2025 is characterized by the expansion of craft beer driven by consumer preference for localized, flavorful, and health-conscious products. On-premise dynamics reveal challenges in traditional draft beer consumption, offset by growth in non-alcoholic and premium beverage segments. Major corporations are maneuvering through strategic acquisitions as craft pioneers face sustainability hurdles. Innovation, market adaptability, and regulatory awareness remain vital for industry players navigating this evolving landscape.