Craft beer market declines 4% in 2024
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The craft brewing market is in the tank.
Why it matters: The once-thriving industry struggled to stay afloat in 2024 after posting its third consecutive year with negative growth, a trend driven by market saturation and shifts in alcohol consumption, particularly among younger drinkers.
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 Tuesday 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.
Context: The overall U.S. beer market saw a 1.2% decline in production volume.
- Craft beer's market share accounted for 25% of total retail sales, the association reported.
- The production numbers include nonalcoholic beer but not seltzers or craft cocktails made by breweries.
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.
By the numbers: 9,612 craft breweries were operating last year. The largest remains Pennsylvania's Yuengling, followed by Boston Beer Co. and Sierra Nevada Brewing, based in California.
What we're watching: The 2025 outlook for the craft beer industry doesn't favor a rebound. Small brewers are being hit especially hard by tariffs on equipment, kegs, aluminum cans and ingredients, such as hops and grain.
- The combination of factors is leading breweries to delay expansion plans, raise prices and absorb losses, Gacioch says.
Editor's note: The headline has been corrected to remove the historical reference.