Craft brewers are producing less beer in Pennsylvania
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Pennsylvania's craft beer industry took a hit last year as production plunged.
Why it matters: It's forcing brewers to get creative and expand into nonalcoholic beverages to boost revenues from this multibillion-dollar industry.
Driving the news: Production fell roughly 28% among Pennsylvania craft brewers in 2025 from the previous year, per data from the Brewers Association.
- The industry's economic impact in the state also dipped 6.5% in 2025 to $4.8 billion.
State of play: 538 craft breweries were operating across the state last year — five more than in 2024.
- That includes Pennsylvania-based Yuengling, which held onto its title as the nation's largest craft brewery in 2025.
Meanwhile, notable closures last year included Iron Hill Brewery, a significant player in the Philly region that had several locations. (Some former Iron Hill locations are reopening under new ownership.)
Zoom out: National production fell 5.1% last year.
Threat level: Craft breweries are facing several challenges.
- They include rising production costs, declining consumer spending, intense competition (like the rapid rise of ready-to-drink cocktails) and a trend away from alcoholic drinks.
Yes, but: Coming off the industry's Craft Brewers Conference in Philly last week, Hannah Ison, executive director of Brewers of Pennsylvania, tells Axios the industry's mood remains hopeful, primarily due to a rise in partnerships and innovation.
- Pennsylvania craft breweries are expanding their menus to include non-beer alternatives, like seltzers and ciders, as well as leaning into merch.
- Look out for "hop water," too — a carbonated, nonalcoholic drink brewed with hops.
Plus: Some are bucking the trend.
- Wissahickon Brewing Co. opened two new locations over the past year.
- Love City Brewery is set to unveil its new Manayunk spot.
- And Evil Genius Beer Co. recently bought San Francisco's 21st Amendment Brewery.
What they're saying: "Craft beer isn't going away," Ison said.
- "Times are tough right now," she added. "But brewers are still making it work and we will get through this."