Craft beer's decline hits Hoosier breweries
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Illustration: Sarah Grillo/Axios
Indiana's craft beer industry shrank again in 2025 as brewery closures continued to outpace openings.
Why it matters: The persistent decline is startling this once-booming industry that employs more than 10,000 Hoosiers, forcing brewers to rethink their business models and expand into non-beer beverages.
Driving the news: The number of breweries in the state fell 4.6% to 185 in 2025, dropping Indiana one spot to 18th in the U.S. for total operators, per data from the Brewers Association.
- Indiana also slid one spot to 23rd in barrels produced annually, with over 222,000 in 2025, down from over 233,000 in 2024.
Yes, but: The industry's economic impact on the state increased from roughly $1.48 billion in 2024 to $1.57 billion in 2025.
State of play: The total number of craft breweries in the U.S. fell to 9,578, a 2.9% net decline from 2024, as openings declined sharply and 481 closed in 2025.
- The industry saw a 5% decrease in production last year, a new low outside the pandemic, and followed a 4% slump in 2024.


Between the lines: 60% of breweries reported reductions in beermaking, while the remainder saw modest growth.
The other side: Craft beer outperformed the broader beer market, which declined 5.7%.
What they're saying: Indiana Brewers Guild executive director Julia Whitson said brewers statewide are realistic about challenges like tighter margins, changing consumer habits and increased competition from other beverage categories.
- "But they're not discouraged," she told Axios. "We're seeing many Hoosier breweries adapting well, with a focus on being community-focused businesses."
Fun fact: Indiana is represented on the Brewers Association's 2025 lists of the top 50 companies by production, with Munster-based 3 Floyds Brewing at No. 25 on the craft beer rankings and No. 35 on the overall brewing company rankings.
What we're watching: The report suggests breweries with strong brands and differentiated offerings are holding steady or expanding.
- More breweries are moving in that direction, serving hard seltzers and canned cocktails and adding food to appeal to a broader consumer base.
- Whitson said more breweries in 2026 are also turning their taprooms into gathering hubs by investing in events, food programs, music, outdoor spaces, special collaborations and more.
What's next: Hoosier brewers will bring their latest innovations to Victory Field on July 18 for the Indiana Brewers Guild's 29th annual Summerfest fundraiser.
- More than 150 beers, ciders, craft cocktails and nonalcoholic beverages will be served alongside live music, games and shopping from 2-6pm.
- General admission tickets, which run from 3-6pm, start at $45 if purchased before June 13.
The bottom line: "Indiana stands out for our accessibility to craft beer options all across the state." Whitson said. "Our breweries take pride in being their neighborhood's go-to location."

