Production declines, but craft outperforms beer overall
From Staff Reports
The Brewers Association released a report on April 15 reviewing 2025 craft brew data. The U.S. craft brewing industry continued to adjust to a challenging market in 2025, posting a 5% decline in production amid broader softness in beer sales. Despite these headwinds, craft brewers slightly increased market share and demonstrated resilience in key segments.
Total craft production (21,859,000 barrels) fell 5% in 2025, with 60% of breweries reporting declines, 39% reporting growth and 1% holding steady. By business model, brewpubs declined 1.7%; taprooms, 3.9%; microbreweries, 8.9%; and regional breweries, 5.9%. Craft beer outpaced the overall beer category, which declined 5.7% by volume, highlighting relative resilience within a contracting market, the report stated.
Market share edges up
Craft’s share of the beer market by volume increased slightly from 13.2% to 13.3%, reflecting continued consumer demand for independent craft beers despite overall category declines. Craft beer’s retail dollar value declined 3.6% year over year in 2025 to a total of $27.8 billion.
While reduced sales volume contributed to the drop, the impact on dollar sales was less pronounced due to higher average beer prices and a continued shift toward on-site consumption models such as taprooms and brewpubs. As a result, retail value proved more resilient than volume trends alone might suggest. Craft maintained a 24.6% share of total beer retail dollar sales, essentially unchanged from the prior year.
Fewer breweries, slower openings mark industry reset
The number of operating U.S. craft breweries fell to 9,578, a 2.9% net decline from 2024. Breakdown by type: microbreweries: 1,994 (down 4.4%); brewpubs: 3,525 (down 2.5%); taprooms: 3,784 (down 2.7%); and regional breweries: 275 (down 0.4%).
New brewery openings dropped sharply to 300 in 2025, down from 518 in 2024, while closures also declined to 481 from 591. The craft brewing workforce declined to 189,000 jobs, down 8,000 (4%) year over year. Employment held up better than production, supported by the relative stability of hospitality-focused brewery models.
Regional and business trends
Performance varied across regions. The East North Central Census division posted the strongest trend with growth of 0.3%, followed closely by the Pacific division (down 0.1%), both outperforming national trends.
Breweries with strong brand identity and clear market positioning continued to outperform. Hospitality-driven models remained comparatively resilient, particularly those offering differentiated value to budget-conscious consumers.
Cautious optimism ahead
Key trends shaping the future include a potential rebound in consumer attitudes toward beverage alcohol and the growing importance of experience-driven brewery models.
“The industry outlook points toward cautious optimism, as shifting trends offer hope for a more stable path forward after several challenging years,” said Matt Gacioch, staff economist at the Brewers Association.
“While it is probably premature to say the industry has settled into a ‘new normal,’ there are many indications that we are moving in that direction. Success going forward will come down to creating something meaningful and memorable for consumers,” Gacioch said.
