Texas' craft brewing market is on the decline, as closures outpaced openings last year and production slipped.

Why it matters: The once-thriving industry is now struggling amid shifts in alcohol consumption, particularly among younger people, and brewers are looking for ways to adapt.

By the numbers: Texas craft beer production reached 1.34 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.

What's happening: 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.

• Central Texas lost several craft breweries in 2024, including Stonewall's Bluemont Vineyard and Brewery, Tanglefoot Brewing in Temple and Last Stand Brewing in South Austin.

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.

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.

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.

More on Texas brews

Even as some breweries struggle, Austin's Meanwhile Brewing Co. is expanding its distribution to San Antonio restaurants and bars and ramping up production.

Why it matters: Meanwhile wants to be known as a Texas brewery, and isn't holding back despite statewide declines in the craft beer market.

What they're saying: "We'd like to … have a presence throughout the state," Conner Gilfillan, general manager at Meanwhile, tells Axios. The company sees San Antonio "as the natural next step."

Flashback: The brewery began its expansion down the I-35 corridor last fall. Its beer is now available in Buda, Kyle, San Marcos, New Braunfels, Lockhart and Wimberley.

The big picture: Meanwhile opened in Southeast Austin in October 2020 — offering outdoor seating, food truck bites and a kids play area — and Gilfillan says they learned some lessons about how to advance a business in tough times.

• Costs have been rising since they opened, and despite the threat of tariffs, "this is no different," Gilfillan says.
• While it might not be the boom era for craft beer anymore, Gilfillan says people are still looking for the social connection and memorable experiences that good beer and breweries can offer.

What's next: Meanwhile produced about 7,700 barrels of craft beer in 2024, per Gilfillan. The company's goal for 2025 is to produce 10,000 barrels.

The bottom line: "I think the beer industry overall is in a moment, but (I'm) definitely optimistic in its rebound and believe this is just a season," Gilfillan says.

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Starting tomorrow, U.S. airports will require travelers to present a Real ID at TSA checkpoints, military bases and secure federal buildings.

• Many Austin DPS offices are booked for months for ID renewals, but you can use a passport for domestic flights in the meantime. Check which documents to take to your appointment.

The big picture: Real IDs are forms of identification that are validated using federal documents, such as passports.

Flashback: President George W. Bush signed the Real ID law in 2005, in response to the 9/11 terrorist attacks.

• But the deadline has been pushed several times.

How it works: All domestic travelers will have to present a Real ID, passport or permanent resident card. The TSA website notes other acceptable forms of identification.

• Texas driver's licenses have a gold star at the top right to indicate that they are a Real ID.

Reality check: You don't need a Real ID to drive, vote or open a bank account.

Twelve bars and restaurants will offer 50% off select margaritas all month long.

Drink up: Participating venues and their specialty margs include Azul Rooftop's Cactus Kiss, Upstairs at Caroline's Margaritas in Mexico and The Veranda Watermelon Hibiscus Margarita.

• Find the other participating bars on the Margarita May website.

Plus: Every Monday in May, guests can participate in "Marg Money" drops, where $100 in promo cash are hidden at secret locations in Austin.

• Clues on each bar's social media will help you track down the prize.
• The winner will score a redeemable voucher, which can be used at any of the participating venues.