Chicago Breweries Adapt to Changing Drinking Habits or Face Closures

As consumers seek healthier options and more variety, some Chicago breweries struggle to stay afloat

Feb. 20, 2026 at 10:37pm

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In Illinois and across the country, breweries have been struggling as consumers seek healthier drinking habits or have a wider range of options, such as THC-infused drinks, as business costs continue to rise. Many have closed their doors, while others have redefined their meaning as a social space that offers beverage variety and events. Chicago has seen a handful of brewery closures in recent years, including Metropolitan Brewing, Revolution Brewing, and Lo Rez Brewing. Experts believe the craft beer industry is evolving, not disappearing, as breweries adapt to changing consumer preferences and economic challenges.

Why it matters

The changing drinking habits and increased competition from non-alcoholic and cannabis-infused beverages have put significant pressure on the craft beer industry, leading to brewery closures across the country, including in Chicago. This shift reflects broader lifestyle and health trends among consumers, as well as the need for breweries to diversify their offerings and redefine their role as social spaces to stay relevant.

The details

Breweries in Illinois and across the country have been struggling due to a combination of factors, including consumers seeking healthier drinking habits, a wider range of beverage options (such as THC-infused drinks), and rising business costs. In Chicago alone, a handful of breweries have closed or consolidated in recent years, including Metropolitan Brewing, Revolution Brewing, and Lo Rez Brewing. The number of U.S. breweries closing outpaced those that opened for the second year in a row in 2025, resulting in a net loss of 179 breweries. This stands in stark contrast to a decade ago, when the number of breweries opening was about 10 times higher than those closing.

  • In 2025, the number of U.S. breweries closing outpaced those that opened for the second year in a row, resulting in a net loss of 179 breweries.
  • Metropolitan Brewing and Lo Rez Brewing in Chicago closed their doors in 2023.
  • Alarmist Brewing in Chicago closed on February 1, 2026 after years of struggling with falling business after the pandemic.

The players

Matthew Nix

A 36-year-old high school teacher living in the Edgewater neighborhood of Chicago who visited Alarmist Brewing for the first and last time on the day of its closing.

Gary Gulley

The owner of Alarmist Brewing, which closed on February 1, 2026 after years of struggling with falling business after the pandemic.

Paul Megalis

The co-owner and CFO of Maplewood Brewery and Distillery in the Logan Square neighborhood of Chicago, a brewery that has been bolstering events and activities to cultivate brand loyalty.

Matt Gacioch

The staff economist at the Brewers Association, a trade group for small American brewers.

Andrew Heritage

The chief economist at the Beer Institute.

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What they’re saying

“This is my first time here, first and obviously last.”

— Matthew Nix, high school teacher (Chicago Tribune)

“The bottom line is we're just not selling. It just never recovered since COVID.”

— Gary Gulley, owner of Alarmist Brewing (Chicago Tribune)

“We have our core brand that we make, but we're always coming out with something new and fun … that's helped us out.”

— Paul Megalis, co-owner and CFO of Maplewood Brewery (Chicago Tribune)

“Craft beer industry is nothing if not creative.”

— Matt Gacioch, staff economist at Brewers Association (Chicago Tribune)

What’s next

Maplewood Brewery and Distillery plans to open a second location in Glen Ellyn slated for this spring.

The takeaway

The struggles faced by Chicago breweries reflect the broader challenges in the craft beer industry, as consumers seek healthier and more diverse beverage options. To adapt, some breweries are redefining themselves as social spaces that offer a variety of beverages and events, while others are diversifying their product portfolios. Despite the closures, experts believe the craft beer industry is evolving, not disappearing, as breweries find creative ways to stay relevant and meet changing consumer demands.