Ohio brewers face tough market as craft beer boom fades
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The craft brewing market is in the tank.
Why it matters: After three straight years of negative growth, the once-booming craft beer industry is struggling as market saturation and shifting drinking habits reshape the industry.
State of play: Craft beer production hit 23.1 million barrels in 2024 — a 4% decline compared to the previous year and the largest drop in industry history outside the pandemic, according to data released this month by the Brewers Association.
- The number of small, independent breweries operating in the U.S. decreased for the first time in 20 years, with 501 closures compared to 434 openings.
Between the lines: The numbers represent a maturing and highly competitive marketplace, says Matt Gacioch, the association's staff economist.
- "In a mature market, not every year is going to be defined by substantial growth," Gacioch said in a statement.
Zoom in: Forty-six breweries opened in Ohio and 36 closed in 2024, including Akronym in Akron, Avon Brewing Co. in Avon and Pulpo in Willoughby.
- While openings have continued to outpace closings, this is the tightest margin between the two in more than a decade, according to the Ohio Craft Brewers Association.
Yes, but: OCBA's Deputy Director Justin Hemminger tells Axios that many independent brewers are now producing alternative products — such as seltzers, ciders, ready-to-drink cocktails, and hemp-derived THC beverages — to meet consumer demand.
What they're saying: "One of the strengths of the small brewery business model is the ability to quickly pivot to meet shifts in customer preferences," Hemminger says.
What's next: Even with the turbulence in the market, nearly 50 new Ohio breweries are planning to open in the next couple of years.