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 1.369 million barrels in 2024, an 8.7% drop from 2023, according to new data from the Brewers Association.

Plus: Texas saw 29 craft breweries close and just 22 open in 2024, per the Texas Craft Brewers Guild, mirroring national trends.

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.

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.
• "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.

• Yet even Shiner has diversified, having introduced spirits last year.

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.

Go deeper

Meanwhile (wink wink), speaking of beer …

Austin's Meanwhile Brewing Co. is going against the grain by expanding distribution to San Antonio 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."

State of play: Meanwhile is a popular brewery in Austin, known for its expansive outdoor seating area complete with food trucks.

• Its German-style Helles Lager has won several awards.

Zoom in: Meanwhile beers are now sold at 23 restaurants and bars in San Antonio, plus a few retailers, per Gilfillan.

• Locals can find it at the Flying Saucer Draught Emporium, The Hoppy Monk and Burleson Yard Beer Garden, among other bars. Shoppers can grab it to go at Pullman Market at Pearl.

By the numbers: 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 big picture: Meanwhile opened in Austin in October 2020 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.

Beer industry's moment

💬 Advocates are concerned that homelessness could increase under bills in the Texas Legislature to beef up enforcement of a statewide encampment ban and prevent homelessness service organizations from opening near schools. (Texas Tribune)

🗳️ Early voting turnout in the open races for San Antonio mayor and several City Council seats hit a 12-year low amid Fiesta celebrations. (Express-News 🔑)

💰 The San Antonio Housing Trust purchased the vacant National Grocer Company building, a site key to redeveloping the Cattleman Square area west of downtown. (SA Business Journal 🔑)

Friday

🍽️ Celebrate Pan-African Festival Weekend with A Taste of Africa, 6:30-8:30pm at Trices Café and Lounge.

• There will be plenty of food and a DJ. Tickets cost $25.

Saturday

🧘 Bring your mat for outdoor yoga with goats at Fermenteria, 1-2pm. A $24 ticket includes a drink.

🥳 Celebrate Pullman Market's first birthday at Pearl with live music, food vendors and family activities from the DoSeum, 1-5pm.

🛍️ Shop the makers market at Breva Creative Makerspace, 1-7pm.

🎶 Dance to free live music from the Conjunto Cats at The Aquaduck Beer Garden, starting at 9pm.

Sunday

🤠 Enjoy free admission to the Briscoe Western Art Museum for locals day, 10am-5pm.

Top Fiesta events this weekend

🇩🇪 Fiesta Gartenfest at Beethoven Männerchor runs through Friday.

🌏 A Night in Old San Antonio has its final night on Friday.

💐 The Battle of Flowers Parade kicks off at 10:30am Friday.

🎊 King William Fair in Southtown starts its parade at 9am Saturday.

🌟 The Fiesta Flambeau Parade kicks off at 7:45pm Saturday.