Craft Beer Industry Faces Closures and Shifts in 2025: US Market Trends and Survival Strategies
The American craft beer sector ended 2025 with more closures than openings, signaling a maturing market under pressure from rising costs and changing consumer preferences (American Craft Beer, December 22, 2025, https://www.americancraftbeer.com/american-craft-beer-industry-faces-uncertain-future-christmas-2025/). Breweries operating in June 2025 totaled 9,269, down 1% from the prior year, as closings outpaced new starts (Brewers Association, 2025 Midyear Report, https://www.brewersassociation.org/association-news/2025-midyear-report/).
Net Closures Dominate 2025 Landscape
The Brewers Association tracked 268 brewery openings against 434 closures in 2025, marking continued contraction post-pandemic (Karl GD’s Substack, This Week’s Beer News, https://karlgdb.substack.com/p/this-weeks-beer-news-counting-breweries). In Colorado, state data revealed beer sales through July at 65 million gallons, a 6% decline from 2024 and the lowest start to a year since 2016 (CPR.org, November 25, 2025, https://www.cpr.org/2025/12/01/craft-beer-sales-crisis-revernce-brewing-company-colorado/). North Carolina brewers cited rising rents, tariffs, competition, and shifting tastes as key challenges throughout the year (BizJournals, December 19, 2025, https://www.bizjournals.com/triangle/news/2025/12/19/north-carolina-craft-beer-challenges-costs-sales.html).
San Diego saw multiple shifts, including Bolt Brewery and Groundswell Brewing halting production to focus on bar-and-eatery models, while a Santee operation announced closure at month’s end (San Diego Beer News, 2025, https://sandiegobeer.news/2025s-top-news-stories-21-30/). Ratio Beerworks in Denver bucked the trend, growing packaged sales 25% despite retail headwinds, by refining distribution (Craft Brewing Business, 2025, https://www.craftbrewingbusiness.com/featured/denvers-ratio-beerworks-grows-packaged-sales-despite-tough-retail-climate/).
Rising Costs Squeeze Margins
Ingredients, packaging, insurance, and labor costs climbed sharply, eroding thin margins for small producers (American Craft Beer, December 22, 2025, https://www.americancraftbeer.com/american-craft-beer-industry-faces-uncertain-future-christmas-2025/). Employment in craft beer production grew over 23% from 2021-2022, adding nearly 6,000 jobs by 2025, but this boosted expenses amid restaffing (IBISWorld, 2025, https://www.ibisworld.com/united-states/industry/craft-beer-production/4302/).
Consumer Shifts Drive Adaptation
Younger drinkers consumed less beer, favoring spirits, wine, non-alcoholics, and RTD cocktails, with health warnings amplifying moderation trends (American Craft Beer, December 22, 2025, https://www.americancraftbeer.com/american-craft-beer-industry-faces-uncertain-future-christmas-2025/; CPR.org, November 25, 2025, https://www.cpr.org/2025/12/01/craft-beer-sales-crisis-revernce-brewing-company-colorado/). On-premise, non-alcoholic beer surged 33.7% year-over-year, with non-alcoholic IPAs and stouts up 170% and 130% respectively (Craft Brewing Business, CGA Report, 2025, https://www.craftbrewingbusiness.com/featured/navigating-the-u-s-on-premise-consumer-in-2025-key-insights-for-craft-brewers/).
Ales, led by IPAs at 33.8% of revenue, faced slowdown as consumers reported IPA fatigue and sought lighter options (IBISWorld, 2025, https://www.ibisworld.com/united-states/industry/craft-beer-production/4302/). Survivors pivoted to taprooms, low/no-ABV beers, lagers, hyper-local ingredients, and direct-to-consumer channels projected for 1.6% CAGR through 2030 (American Craft Beer, December 22, 2025, https://www.americancraftbeer.com/american-craft-beer-industry-faces-uncertain-future-christmas-2025/; IBISWorld, 2025, https://www.ibisworld.com/united-states/industry/craft-beer-production/4302/). Draft beer held 52.3% of on-premise volumes, up 8.1% in distribution (Hop Culture, 2025, https://www.hopculture.com/top-craft-beer-trends-2025/).
Regulatory and Global Notes
A New York bill signed December 24 boosts craft beverage manufacturing incentives (MidHudson News, December 24, 2025, https://midhudsonnews.com/2025/12/24/bill-to-increase-craft-beverage-manufacturing-signed-into-law/). Globally, beer market size hit $804.65 billion in 2025, eyeing $998.98 billion by 2030 via premiumization (Beer Connoisseur, 2025, https://beerconnoisseur.com/beer-market-growth-trends-2025-2030/).
Industry voices frame this as maturation, not crisis, with efficient operators producing superior beer (CPR.org, November 25, 2025, https://www.cpr.org/2025/12/01/craft-beer-sales-crisis-revernce-brewing-company-colorado/).