Craft beer's decline sets new records in 2025
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The craft beer market continued its historic decline in 2025, with a 5.1% decrease in production and 2.9% contraction in U.S. breweries, a new report shows.
Why it matters: The persistent downward trend is startling the once-booming industry and forcing brewers to rethink their business models and expand into non-beer beverages.
State of beer: The total number of craft breweries fell to 9,578, as openings declined at a sharp rate and 481 closed shop in 2025, a new report released Tuesday by the Boulder-based Brewers Association revealed.
- The decrease in 2025 production is a new high outside the pandemic and follows a 4% slump in 2024.
- 60% of breweries reported reductions in beermaking, while the remainder saw modest growth.
What they're saying: "While it's probably premature to say the industry has settled into a 'new normal,' there are many indications that we are moving in that direction," Matt Gacioch, staff economist at the Brewers Association, said in a statement.
Yes, but: Craft beer outperformed the broader beer market, which experienced a 5.7% decline.
By the numbers: Pennsylvania-based Yuengling remains the nation's largest craft brewery, followed by Sierra Nevada and Boston Beer Co.
What we're watching: Gacioch sees room for cautious optimism as the industry moves toward a model that works.
- Breweries with strong brands and differentiated offerings are holding steady or expanding. And more breweries are moving in that direction, serving hard seltzers, canned cocktails and adding food to appeal to a broader consumer base.
The bottom line: "The industry outlook points towards cautious optimism, as shifting trends offer hope for a more stable path forward after several challenging years," he said.