Michigan brewers adapt as craft beer boom fades
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Michigan's craft brewing market has gone flat, reflecting industry struggles seen nationally.
Why it matters: After three straight years of decline in production, the once-booming craft beer industry is struggling as market saturation and shifting drinking habits reshape the industry.
By the numbers: Craft beer production hit 23.1 million barrels in 2024 — almost a 4% decline compared to the previous year and the largest drop in industry history outside the pandemic, according to new data from the Brewers Association.
Zoom in: Loaded Dice Brewery in Troy and its sibling, Rebuy Brewing Co. in Shelby Township, closed in March. They're among several in-state beer operations that have shuttered in the past year, including Ascension Brewing in Novi and Jamex Brewing Co. in St. Clair Shores, the Detroit News reported.
What they're saying: Despite the closures in Metro Detroit, Michigan has held steady over the past year at about 400 breweries, Michigan Brewers Guild executive director Scott Graham tells Axios.
- "The industry is facing some challenging times, but I don't think that suggests it's going to dry up and go away," Graham says. "I'm optimistic long term, but things are tough right now."
State of play: New products and partnerships have helped some navigate the current climate.
- Corktown's Batch Brewing Company, which has not reached profitability since the pandemic, is expanding with a new soda brand, per the News.
- Griffin Claw Brewing Company, based in Birmingham, is now selling a variety pack at 16 Michigan Costco stores. The company also has a beer cart at Comerica Park this season.
What we're watching: This year's outlook for the craft beer industry doesn't favor a rebound. Small brewers are being hit 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, says Matt Gacioch, the association's staff economist.