While homespun breweries and taprooms still dot the Tucson landscape, the craft beer industry has been experiencing some turbulence.
According to the Brewers Association (BA), an American trade group of over 5,400 brewers, there was no growth in the national market in 2022 and a 2% decline in the first half of 2023.
Breweries like Borderlands Brewing Co. are doing everything they can to overcome the challenges.
Ayla Kapahi, head brewer at Borderlands, said consumers have more options to choose from.
“We’re definitely noticing that craft beer drinkers are drinking more than just craft beer,” Kapahi said. “They’re interested in non-alcoholic brews, seltzers, cocktails.”
Bart Watson, chief economist at the BA, told KGUN 9 rising costs and distribution expenses are part of the financial hardships.
“We’re often seeing breweries pull back on distribution. Breweries are seeing the input cost, the raw material cost has gone up a lot in recent years,” Watson said. “That goes beyond some of the things you might think about — things like CO2 has skyrocketed in expense.”