Craft Beer Continues To Decline In First Half Of 2025

Photo © Brewers Association’

The Brewers Association, the Boulder, Colorado non-profit that advocates on behalf of craft brewers, has just released its midyear numbers for 2025.

And although it wasn’t horrible news, it did point to a continuing decline in the craft beer sector.

With closings continuing to outpace openings, the number of craft breweries operating in June 2025 (9,269) was down 1% from the number operating in June 2024 (9,352).

By business model, the smaller distribution-focused microbreweries experienced the largest drop-off at -3%, followed by taprooms at -1%, and brewpubs and regional breweries with no change year-over-year.

This decline in the number of breweries was accompanied by a somewhat larger drop in the volume of beer produced as well.  The Brewers Association estimates craft volume down 5% year-over-year compared to 2024.

Compared to a year ago when business models performed similarly, taprooms and brewpubs have pulled slightly ahead of distribution models such as microbreweries and regionals by 1–2 percentage points in the first half of 2025.

Scan data aligns with Brewers Association survey results, as NielsenIQ reports BA-defined craft beer down 4.1% in volume for the first half of 2025— slightly better than the overall beer decline of 4.2%.

The drop is driven by retailer and wholesaler cutbacks, tougher shelf space competition, and more cautious consumer spending in the off-premise channel, where most beer is sold.

Overall, the results of the Brewers Association’s midyear survey indicate that for many breweries, the challenges they’ve faced over the past few years have either continued or accelerated.

Unfortunately some breweries that found marginal growth in 2024 experienced slight decreases in the first six months of this year.

However there are still signs of life in the industry…

49% of surveyed breweries reported growth, while 47% saw a decline, and the rest stayed flat. Much of the growth came from the smallest taprooms and brewpubs.

Among breweries producing under 1,000 barrels a year, the gap widens— 50% reported growth, 43% reported declines. While taprooms and brewpubs made up just 15% of total volume in 2024, they account for a significant 73% of all craft brewery businesses.

The good news is that more people are drinking craft beer than ever. According to 2024 Scarborough data, 9.8% of legal-age adults had craft beer in the past 30 days—up from 6.6% in 2013. While people may be drinking it less often, craft beer is reaching a wider audience than ever before.

It’s also worth noting that many brewers have expanded beyond just making beer—though this extra production isn’t included in the midyear survey. Shifting some focus to other products has helped them diversify their income and better meet changing consumer tastes.

That’s the basic temperament of the Brewers Association’s Midyear survey. It’s not the worst, but clearly things have been better.