The U.S. craft beer market contracted again in 2025, but not quite as sharply as total beer, according to the Brewers Association. Craft production fell 5.1% while overall beer volume declined 5.7%, allowing craft’s share of the beer market to edge up from 13.2% to 13.3%. Retail sales by value slipped 3.6% to USD 27.8 billion, yet craft still held 24.6% of total beer retail dollar sales, showing that higher average prices and the continued weight of on-site sales helped cushion the fall.
The pressure was uneven across business models. Brewpubs proved the most resilient with a 1.7% decline, followed by taprooms at 3.9%, while microbreweries fell 8.9% and regional brewers 5.9%. That pattern also helped explain why employment held up better than production. The sector lost 8,000 jobs, down 4% to 189,000, as hospitality-led formats generally require more staff per barrel and remained comparatively steadier than pure production-focused operations.
The shakeout also continued at company level. The number of operating craft breweries fell 2.9% to 9,578, including 1,994 microbreweries, 3,525 brewpubs, 3,784 taprooms and 275 regional breweries. New openings dropped sharply to 300 from 518 a year earlier, while closures declined to 481 from 591. That points to a more mature and more competitive market, with fewer easy openings for new entrants than in earlier years of rapid expansion.
Regional results showed that not all markets moved in lockstep. The East North Central division was the strongest at plus 0.3%, with the Pacific division close behind at minus 0.1%, both clearly outperforming the national trend. Brands with clearer positioning also stood out. Garage Beer and Outlaw from Tivoli Brewing Company were named among the notable gainers, underlining the growing importance of brand clarity and consumer relevance.
Matt Gacioch, staff economist at the Brewers Association, described the outlook as cautiously optimistic. That seems consistent with the broader picture: fewer openings, fewer closures, resilient hospitality models and a beer market in which differentiated craft brands may now be better placed to stabilize after several difficult years. The annual report also included the 2025 Top 50 craft brewery ranking, led by D.G. Yuengling and Son, Sierra Nevada Brewing Co and Boston Beer Company (inside.beer, 14.4.2026).
