The craft beer industry has faced a tragic couple of years with 100s of beer businesses shuttering permanently in 2025, as brewery closures outpaced openings with 434 shutting down and 268 opening by mid-December, Brewbound reported on social media.
The main reasons for the economic distress have been a 1% decline in overall U.S. beer production and imports and a 4% decline in craft brewer volume in 2024. Conditions did not improve in 2025 as volume fell about 5% last year, according to a Brewers Association report.
Domestic beer shipments also declined 5.9% in 2025, losing about 8.68 million barrels of beer, according to the Beer Institute, as Brewbound reported. Shipments in 2025 reached 139 million barrels, a decline from 147.7 million barrels in 2024.
Consumer demand and consumption fall
Consumer demand and alcohol consumption rates of younger generations also declined, the Brewers Association reported, and the cost of ingredients and materials rose with higher inflation…