The U.S. craft beer business had a difficult 2025, and the latest production numbers tell a story of an industry still trying to find its footing in a rapidly changing market. Growth was increasingly hard to come by. Among the nation’s 50 largest craft breweries, only 20 managed to increase production volume, a sign that even the biggest names in craft are feeling the pressure.

The latest Brewers Association update, which appeared in the May/June edition of the new brewer magazine, paints a picture of a market correction that has moved well beyond a temporary slowdown. Consumers are drinking differently, competition is coming from every direction, and breweries are being forced to adapt or risk falling behind.

Overall U.S. craft beer production fell 5.1 percent, dropping to 21.86 million barrels. The decline was significant, but there was one small bright spot. The broader beer market actually performed slightly worse, falling 5.7 percent overall. That allowed craft beer to inch its market share up from 13.2 percent to 13.3 percent. It is a modest gain, but in a year defined by shrinking numbers, brewers were willing to take any victory available.

The industry also saw a continuing pullback in brewery numbers. The era of endless expansion appears to be slowing considerably.

Active brewery operations dropped to 9,578 nationwide as closures far outpaced openings. Nearly 500 breweries shut their doors while only around 300 new ones opened. For an industry that spent years celebrating explosive growth and new brewery announcements, that shift marks a notable change in tone.

And different parts of the craft world felt the pain in different ways.

Microbreweries experienced the sharpest production drops, falling nearly 9 percent. Regional breweries also struggled, down almost 6 percent. Taprooms and brewpubs, fared somewhat better, but still ended the year in negative territory.

The struggles became especially clear near the top of the rankings.

Seven of the ten largest craft brewers saw production declines. Longtime heavyweight D.G. Yuengling & Son’s volume declined 4%, to 2,436,614 barrels, year-over-year. Meanwhile, Boston Beer Company slipped to the number three spot, another sign that established brands are not immune to shifting consumer habits.

Still, not every brewer spent the year playing defense.

Some companies managed to find growth by embracing categories and partnerships that consumers increasingly want. Non-alcoholic beer continued its surge, lighter drinking options gained momentum, and strategic collaborations helped create fresh opportunities.

Athletic Brewing Company continued to be one of the industry’s biggest success stories. The non-alcoholic specialist climbed to the sixth-largest craft brewer in the country after posting a 20 percent increase in volume. As alcohol alternatives continue moving from niche to mainstream, Athletic appears positioned exactly where consumer trends are heading.

Deschutes Brewery also found new momentum, climbing back into the top ten with a 14 percent increase. A highly visible Costco collaboration helped put the Oregon brewer in front of a massive audience and demonstrated how partnerships outside traditional channels can move the needle.

Tilray Beer Brands kept growing through a different strategy. The company reached the number four spot after a series of acquisitions and consolidation efforts helped push volume slightly higher. Rather than relying on organic growth alone, Tilray continued betting that assembling a larger portfolio of established brands could create scale.

Then there was Garage Beer Co., which quietly became one of the industry’s fastest climbers. The company rose to number 12 nationally by tapping into growing consumer demand for lower alcohol and lighter beer styles.

Taken together, the results suggest craft beer is entering a new phase.

The days when simply opening a brewery guaranteed growth have become increasingly distant. Today’s winners are finding success by adapting quickly, spotting trends early, and giving beer fans something different than what they found a decade ago.