Craft Beer Production Drops to New Lows in 2025

The once-booming industry is forced to rethink business models as brewery closures and production declines continue.

Apr. 14, 2026 at 5:26pm

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A high-end, photorealistic studio still-life photograph featuring a collection of premium craft beer bottles and cans arranged elegantly on a clean, monochromatic background, conceptually representing the challenges facing the craft beer industry.As craft beer production and brewery numbers decline, the industry faces a reckoning to adapt to shifting consumer preferences.Boulder Today

The craft beer industry experienced a significant downturn in 2025, with a 5.1% decrease in production and a 2.9% contraction in the number of U.S. breweries, according to a new report from the Boulder-based Brewers Association. The total number of craft breweries fell to 9,578, as openings declined sharply and 481 breweries closed shop.

Why it matters

The persistent downward trend in craft beer production and brewery closures is startling the once-booming industry, forcing brewers to rethink their business models and expand into non-beer beverages like hard seltzers and canned cocktails in order to appeal to a broader consumer base.

The details

60% of breweries reported reductions in beermaking in 2025, while the remainder saw modest growth. The craft beer market outperformed the broader beer market, which experienced a 5.7% decline. Pennsylvania-based Yuengling remains the nation's largest craft brewery, followed by Sierra Nevada and Boston Beer Co.

  • The total number of craft breweries fell to 9,578 in 2025.
  • 481 craft breweries closed shop in 2025.
  • Craft beer production decreased by 5.1% in 2025, following a 4% slump in 2024.

The players

Brewers Association

A national trade group representing small and independent craft brewers.

Matt Gacioch

Staff economist at the Brewers Association.

Yuengling

The nation's largest craft brewery, based in Pennsylvania.

Sierra Nevada

The second largest craft brewery in the U.S.

Boston Beer Co.

The third largest craft brewery in the U.S.

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What they’re saying

“While it's probably premature to say the industry has settled into a 'new normal,' there are many indications that we are moving in that direction.”

— Matt Gacioch, Staff economist, Brewers Association

What’s next

Breweries with strong brands and differentiated offerings are holding steady or expanding, and more breweries are moving in that direction, serving hard seltzers, canned cocktails and adding food to appeal to a broader consumer base.

The takeaway

The craft beer industry's historic decline in 2025, with a 5.1% drop in production and 2.9% contraction in breweries, signals a need for brewers to rethink their business models and diversify beyond traditional beer offerings in order to adapt to changing consumer preferences and remain competitive.