Texas craft beer market drops nearly 9%

By the numbers: Texas craft beer production reached 1.369 million barrels in 2024, an 8.7% drop from 2023, according to new data from the Brewers Association.

• With less production comes a smaller economic impact for Texas — about $4.7 billion in 2024, a 10.6% drop from 2023.

Plus: Texas saw 29 craft breweries close and just 22 open in 2024, per the Texas Craft Brewers Guild, mirroring national trends. Openings in Texas slowed by more than half since 2023.

Zoom out: Nationally, craft beer production hit 23.1 million barrels in 2024 — a 4% decline from the previous year and the largest drop in industry history outside the pandemic.

• The number of small independent breweries operating in the U.S. decreased for the first time in 20 years, with 501 closures compared to 434 openings.

Between the lines: The numbers represent a maturing and highly competitive marketplace, says Matt Gacioch, the Brewers Association's staff economist.

• "In a mature market, not every year is going to be defined by substantial growth," Gacioch said in a statement.

What they're saying: Consumers have a lot of beverage options to choose from these days — like seltzers, CBD and THC beverages and nonalcoholic brews — Caroline Wallace, executive director of the Texas Craft Brewers Guild, tells Axios.

• That leads some breweries to pull back on limited seasonal releases and focus on flagship beers and best-sellers, which can lower production, Wallace says. Some are even ramping up production on their own line of seltzers instead.
• "We definitely have some breweries that their beer production has declined because they've … chased those newer beverages," she says.

Zoom in: San Antonio lost several beloved craft breweries in 2024, including Busted Sandal Brewing Company's three locations and the North Side's Weathered Souls.

• Alamo Beer Company, the city's largest, filed for bankruptcy earlier this year. It remains open.

San Antonio-based The Gambrinus Company, which owns Shiner Beers, ranks No. 6 in the nation for its craft beer production, and Houston's Saint Arnold Brewing Co. ranks No. 35.

• "Enduring brands continue to resonate with drinkers," Gacioch said.
• Yet even Shiner has diversified, having introduced spirits last year.

The big picture: Texas still produces a lot of craft beer — ranking No. 4 in the nation for barrels produced and No. 3 for economic impact in 2024, despite the industry's struggles.

• But that's often a measure of the state's size, Wallace says. Texas ranks No. 27 for barrels produced per capita and No. 43 for economic impact per capita, leading her to think there's still room for the market to grow here.

What we're watching: The 2025 outlook for the craft beer industry doesn't favor a rebound. Small brewers are being hit especially 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, Gacioch says.