Overall beer category decline fails to hold back US craft ‘resilience’
Craft beer in the US has outpaced the overall beer category, which declined 5.7% by volume, highlighting relative “resilience” within a contracting market.
According to an annual report from the Brewers Association (BA), last year the US craft brewing industry continued to adjust to a challenging market and, despite posting a 5% decline in production, its share of the beer market by volume increased from 13.2% to 13.3%.
Despite 2025’s headwinds, craft breweries have outperformed beer overall and although total craft production (21,859,000 bbls) fell 5%, with 60% of breweries reporting declines and 39% showing growth, 1% were still holding steady.
A shift towards taprooms and brewpubs
The data has reflected the continued consumer demand for independent brewers despite overall category declines. Amid a backdrop of US craft beer’s retail dollar value declining 3.6% year-on-year in 2025, to a total of US$27.8 billion, the impact on dollar sales was less pronounced due to breweries adopting new business models. For instance, the market noted a shift towards taprooms and brewpubs which helped the businesses command a higher unit price point. As a result of such changes, the BA highlighted the fact that retail value has proved “more resilient” than volume trends alone might suggest.
Similarly, in the UK, db recently revealed how around half (51%) of the British independent brewing industry now has a shop and 46% have a taproom on their brewery sites with a third (33%) now selling beer through market stalls and events, showing how the beer industry’s routes to market are evolving.
Back in the US, independent beer also maintained a 24.6% share of total beer retail dollar sales, essentially unchanged from the prior year, reinforcing its stable position in the broader market despite ongoing challenges. db also recently unveiled how the US beer industry has uncovered more “meaningful” routes to market after showing strong consumer demand for direct-to-consumer (DTC) shipping in a move that illustrates further growth potential for the future of beer.
‘Relative stability’
Assessing the sector, the BA report data revealed that the craft brewing workforce declined to 189,000 jobs, down 8,000 (-4%) year-on-year. Employment did however hold up better than production, which was supported by the relative stability of hospitality-focused brewery models and the higher rate of employees per barrel produced in those models.
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Even though the number of operating US craft breweries fell to 9,578, a 2.9% net decline from 2024, and new brewery openings dropped sharply to 300 in 2025 (down from 518 in 2024) closures declined to 481 (from 591). According to the report, the slowdown in openings had signalled a shift toward a more mature, competitive market with fewer untapped opportunities for new entrants.
Performance varied across regions with the East North Central census division posted the strongest trend, finding growth of +0.3%, followed closely by the Pacific division (-0.1%), both outperforming national trends.
‘Human connection’ and ‘unique experiences’ to will stand out
Breweries with strong brand identity and clear market positioning continued to outperform, with brands like Garage Beer and Outlaw, by Tivoli Brewing Company, among notable gainers. Key trends shaping the future of independent beer’s success include a “potential rebound” in consumer attitudes towards alcohol as well as continued momentum for strong and differentiated brands, and the growing importance of experience-driven brewery models that offer value beyond the product itself.
Speaking about the findings, BA staff economist Matt Gacioch said: “The industry outlook points towards cautious optimism, as shifting trends offer hope for a more stable path forward after several challenging years.”
Gacioch explained: “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. What’s nearly guaranteed is that success going forward will come down to creating something meaningful and memorable for consumers. Breweries that deliver consistent quality, human connection, and unique experiences will stand out.”
db has reached out to the BA for further insight into the hints and tips that are assisting with its stability, including the styles of beer that are seeing the biggest spike in sales for the independent beer market with plans to update with further advice for the sector in due course.
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