Stagnation has set in. America’s craft beer scene has stalled after decades of growth. The number of U.S. craft breweries slipped to 9,269 in June 2025, down one percent from last year. For the initial time in twenty years, the total count of small independent breweries actually shrank in 2024. Brewery closures are now outpacing new openings.
Microbreweries have fallen three percent over the past year. Taprooms dipped one percent, while brewpub and regional outfits held steady. Market saturation is plain: shelves and tap handles can’t fit every enthusiastic new brand, and weaker players are shutting down. Retailers and wholesalers have less room for slow sellers, pushing more breweries toward failure.
Microbreweries down 3%, taprooms off 1%: market saturation culls weaker brands
Craft beer output is also sliding. Production dropped four to five percent in the initial half of 2025, following a four percent slide in 2024 that brought the yearly total to 23.1 million barrels. That loss is the biggest since COVID’s early shock. Distribution breweries took the hardest hit, while taprooms and brewpubs were down only one or two percent.
Even the wider U.S. beer market fell; craft fared only slightly better. Higher food and rent prices have trimmed household budgets, leading drinkers to buy less at stores. Yet even in Ohio, recent data shows openings still barely edge out closings, a trend now the tightest it’s been in over a decade. Non-alcoholic beer rose 22.2% amid the turmoil, offering brewers a rare bright spot. Bars see similar pressure as patrons cut nights out.
Consumer habits are changing too. Occasional craft drinkers made up 9.8 percent of adults in 2024, up from 6.6 percent in 2013, yet these drinkers aren’t drinking as often. The “drink less but better” mood drives interest toward smaller, premium pours. Hard seltzers, ciders, cold brew lattes, and hemp drinks now steal attention from beer altogether. Bright flavors and lighter cans appeal when wallets are tight.
Amid the gloom, the tiniest brewers show a different pattern. Nearly half report growth, especially those making under 1,000 barrels a year. Taprooms and brewpubs, which form 73 percent of all craft businesses while supplying just 15 percent of volume, have been more stable. Their small scale lets them rotate styles or launch non-alcohol options quickly.
Nonetheless, tariffs raise the price of aluminum cans, kegs, hops, and grain—a burden small owners feel faster than big firms.
