Craft Beer Volume Slows in Second Half of 2025
**Craft beer volume continued to weaken in the latter half of 2025**, with industry data indicating a noticeable deceleration in growth and a second consecutive year of net closures among U.S. breweries (Shanken News Daily, 2025). (Shanken News Daily, 2025) The Brewers Association reported that closings outpaced openings in 2025, tracking 268 new openings against 434 closings and noting that Q3 scan data pointed to a continued back-half slowdown (Brewers Association, 2025). (Shanken News Daily, 2025)
Shifts in Consumer Preferences: Health and Premiumization
**Health-conscious drinking and premiumization are reshaping demand**, with on-premise research showing one-third of consumers planning healthier food and drink choices and 25% moderating alcohol intake—trends that favor lower-ABV and non-alcoholic beer innovations (Craft Brewing Business, 2025). (Craft Brewing Business, 2025) Non-alcoholic beer grew strongly on-premise—reported at double-digit increases—and specific styles such as non-alcoholic IPAs and stouts showed outsized percentage gains year-over-year (Craft Brewing Business, 2025). (Craft Brewing Business, 2025)
Market Rationalization and Operational Impact
**Retailer assortment rationalization and cost pressures are driving consolidation**, with distributors and retailers simplifying assortments and prompting many craft brewers to focus on proven core brands rather than constant new releases (Brewers Association, 2025). (Brewers Association, 2025) Industry commentary highlights margin and supply challenges—higher input costs for hops and grain—putting smaller operations under stress while larger players reallocate production and capacity (Beer Business Daily, 2025). (Beer Business Daily, 2025)
Category Opportunities: Draft, RTDs and Import Strength
**Draft beer and RTD formats represent growth levers for craft and mainstream producers alike**, with draft lines gaining share in venues and ready-to-drink products expanding in high-energy locations—an area where brewers can innovate with beer-based RTDs (Hop Culture; Craft Brewing Business, 2025). (Hop Culture, 2025) Import lagers from Mexico and other markets continued to perform strongly in retail channels, contributing to category dynamism despite domestic craft softness (OHBev, 2025). (OHBev, 2025)
Industry Data and Outlook Signals
**The Brewers Association’s 2025 Year in Beer and Midyear reports underline a challenging but adaptive sector**, noting changing consumer behaviors, inflationary pressures, and retailer rationalization as compound headwinds while also pointing to successes such as draft growth and innovation in low- and no-ABV segments (Brewers Association, 2025). (Brewers Association, 2025) Forecasts from market analysts place 2025 as a turning point where craft consolidates and new winners emerge via premium, low-ABV, NA beer, and RTD formats (BeerConnoisseur / market analysts, 2025). (BeerConnoisseur, 2025)
Immediate Takeaways for Industry Stakeholders
**Product portfolios should prioritize approachability, proven flagships, and health-forward SKUs**, while distribution strategies must adapt to retailer assortment constraints and the rise of RTDs and NA beers as alternative growth channels (SevenFifty Daily; Craft Brewing Business, 2025). (SevenFifty Daily, 2025) Investments in draft placement, localized sourcing, and measured innovation—such as limited runs of lower-ABV releases—are positioned as pragmatic responses to current market signals (Tastewise; Hop Culture, 2025). (Tastewise, 2025)
Sources: Shanken News Daily, 2025; Brewers Association, 2025; Craft Brewing Business, 2025; Beer Business Daily, 2025; Hop Culture, 2025; OHBev, 2025; BeerConnoisseur, 2025; SevenFifty Daily, 2025; Tastewise, 2025.