(Photo © Brewers Association)

In December, the national trade organization, Brewers Association, released its year-end recap, which pointed to an increasing difficult period for the craft beer industry.

Although its year-end numbers weren’t finalized at the time of the BA’s announcement, full-year craft volume numbers are expected to be  “weaker than the midyear estimate” of down -2%, marking the first two decline , (2023 beer volume was down 1%) outside of the COVID-19 lockdowns in craft beer’s modern era.

“Craft has been going through a painful period of rationalization as demand growth has slowed and retailers and distributors look to simplify their offerings or add options for flavor and variety outside of the craft category,” said Bart Watson President and Chief Executive Officer

 “That said, breweries have reacted to these changes by focusing on distribution, continuing to innovate in their taprooms and brewpubs, creating groups and partnerships, and offering a wider range of beverages in their portfolios.”

(Bart Watson / Photo © Brewers Association)

And here are some of the Boulder, Colorado-based not-for-profit’s key takeaways…

Craft Beer by the Numbers

• Count: The number of small and independent breweries in operation in the U.S. in 2024 totaled 9,736.

• Openings and Closings: Throughout the year, the BA has tracked 335 new brewery openings and 399 closings. Despite the slight decline in the number of breweries in operation, closings remain a low percentage of total operating breweries.

• Employment: The craft beer industry supported nearly 460,000 jobs nationwide, fostering local economies and creating opportunities.

• Economic Impact: Craft beer’s contribution to the U.S. economy reached an impressive $77.1 billion, demonstrating its vital role in the broader beverage market.

Photo © Brewers Association’

2024’s Hottest Market Trends

• Non-Alcohol Beer Boom: With the growing demand for mindful drinking, non-alcohol beer sales soared (scan dollars up 30%+ year-over-year from January through October) as brewers refined their techniques to deliver flavor-packed options.

• Focus: After years of unfettered innovation ruling the industry, brewers are focusing more on building off of products and models where they’ve found success.

• Hospitality: Breweries embraced new ways to emphasize the customer experience, from offering diverse dining options, cocktails, and mindful drinking options to family-friendly activities such as menus for kids to color.

According to the Brewers Association “the industry is poised for another challenging year in 2025, with additional uncertainty, potential tariffs and rising costs, retailers and distributors looking to simplify offerings, and potential new dietary guidelines for beverage alcohol. Market pressures will likely lead to continued consolidation and alliances to cut costs and utilize excess capacity.”

“Brewers are experiencing critical challenges at the crossroads of a high-cost environment paired with slowing growth,” Watson added… “To grow in 2025, brewers must do what they do best: adapt. They also will need to continue to do the hard work to find ways to tell their story and differentiate their brands against the competition.”