North Carolina craft beer has entered a "new era"
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The craft beer market's historic decline continued last year, with a 5.1% decrease in production and 2.9% contraction in U.S. breweries amid a slump in consumption, a report released Tuesday shows.
- Those national trends are being felt in taprooms across North Carolina.
Why it matters: Craft breweries were a growing part of the state's economy throughout the past decade, breathing new life into downtowns throughout the state and making places like Asheville a destination.
- More than 400 craft breweries now operate in North Carolina. They had an economic impact of more than $2.2 billion in 2024, according to the report, released by the Colorado-based Brewers Association.
Driving the news: In North Carolina, beer sales decreased by 9.7% overall between 2021 and 2025, according to the state's Department of Revenue.
- And, beginning in 2024, more breweries began closing in the state than opening, according to the NC Craft Brewers Guild.
Zoom in: Last year, 21 breweries closed their doors in the state, ranging from longtime breweries like Duck-Rabbit to newer ones like Cotton House Craft Brewers in downtown Cary and Vicious Fishes in Apex and Fuquay-Varina.
- The closures have continued this year, including recent ones like Funguys Brewing in Raleigh and Proximity Brewing in Durham.
State of beer: The total number of craft breweries in the U.S. fell last year to 9,578, as openings declined at a sharp rate and 481 closed shop, the Brewers Association report revealed.
- The decrease in 2025 production was a new high outside the pandemic and followed a 4% slump in 2024.
- 60% of breweries reported reductions in beermaking, while the remainder saw modest growth.
What they're saying: Breweries have been hurt by decreases in in-person socialization after the pandemic, as well as by consumers — especially younger ones — drinking less beer overall, said Lisa Parker, executive director of the NC Craft Brewers Guild.
- At the same time, operating costs since 2020 have gone up significantly, hurting the margins of many small breweries.
- "While opinions vary on any singular cause of this slowdown, it is clear that craft beer has entered a new era," Parker wrote in February.