Craft Beer Trends 2025: Declining Sales, Rising Projections, and Innovation Amid Headwinds
Nationwide craft beer revenue in the U.S. has hovered near or below zero growth between 2022 and 2025, according to an IBISWorld report (Flathead Beacon, 2025). Breweries face persistent year-to-year revenue swings as the **’drink less, drink better’** mindset gains traction among younger consumers (Flathead Beacon, 2025).
U.S. Craft Beer Production Declines Sharply
Craft beer production dropped **3.9%** last year compared to 2023, with overall beer market down **1.2%**, per Brewers Association data (Flathead Beacon, 2025). In Montana, craft beer output fell **5%** in the same period and **12%** from its peak four years ago (Flathead Beacon, 2025). Closings continue to outpace openings, leaving **9,269** craft breweries operating in June 2025, down **1%** from prior levels (Brewers Association, 2025).
Younger drinkers favor spirits, ready-to-drink cocktails, and non-alcoholic beverages, contributing to **IPA fatigue** (Flathead Beacon, 2025). The pandemic shifted habits to at-home drinking, with craft revenue plunging **25.2%** in 2020 before rebounding **15.5%** in 2021 (Flathead Beacon, 2025).
Global Craft Beer Market Eyes Strong Growth
Contrasting U.S. trends, the global craft beer market reached **USD 142.6 billion** in 2024 and projects a **CAGR of 8.74%** from 2025-2033, hitting **USD 329.7 billion** by 2033 (IMARC Group, 2025). Europe holds **38.1%** market share in 2024, driven by demand for unique, flavorful, locally brewed beers and beer tourism (IMARC Group, 2025).
Rising health consciousness, with an index projected to hit **111.4 points** in 2024-25, boosts low-calorie, organic, no- and low-alcohol craft options (IMARC Group, 2025). In Asia Pacific, urbanization and disposable incomes expand premium craft segments through tasting events and collaborations (IMARC Group, 2025).
On-Premise Shifts Favor Health and Premiumization
In early 2025 U.S. on-premise venues, **non-alcoholic beer** surged **33.7%** year-over-year, outpacing traditional beer, with non-alcoholic IPAs up over **170%** and stouts **130%** (CGA On Premise Impact Report, 2025). A third of consumers plan healthier choices, **25%** aim to moderate alcohol, spurring low-ABV innovations (CGA On Premise Impact Report, 2025).
**Premiumization** trends see **20%** of consumers opting for higher-quality drinks, benefiting unique craft brews (CGA On Premise Impact Report, 2025). Draft beer dominates on-premise at **52.3%** of volumes, with distribution points up **8.1%** in the last twelve months (Hop Culture, 2025).
Breweries Diversify Amid Challenges
Flathead, Montana breweries counter sales dips with diversified menus, non-alcoholic options, and alternative ferments as consumers seek variety (Flathead Beacon, 2025). **Health and wellness** drives future products like gluten-reduced, low-calorie, low-ABV beers, and CBD-infused drinks where legal (Flathead Beacon, 2025).
Craft operations emphasize hyper-local ingredients, wild fermentation, limited releases, and sustainable practices to meet evolving tastes (Tastewise, 2025). Breweries swap extreme styles for approachable sessionables, targeting broader appeal (SevenFifty Daily, 2025).