The Brewers Association just published its Year in Beer report for 2025. I’ve just studied it and have some thoughts to share. While the news is not great, there’s room for optimism if you put things into context. The biggest takeaway from 2025 is that the craft beer industry continued to face headwinds, and many of the challenges are not expected to disappear next year. Focusing on the negative does not help. Things are tough, there’s no denying, but we must charge forward. I hope to offer some hope and encouragement. There is some positive stuff.
Where We Are and What’s Ahead
One challenge breweries faced this year, not often considered by the general public, was interest rates. Though no one has a crystal ball, there are indications that interest rates will continue to drop in the coming year, which will help many breweries expand and/or modernize to increase efficiency. Lower interest rates are helpful, but breweries should still be thoughtful about expansion.
Because the issue was heavily politicized, breweries are reluctant to speak publicly about the impact of tariffs. Beyond higher prices for breweries, the tariffs created market uncertainty, leaving them wondering whether they’d be able to secure specific supplies and at what cost. The availability of simple things like barley and aluminum cans was suddenly a cause for concern. In the coming year, hopefully soon, the Supreme Court is expected to issue guidance on the legality of specific tariffs. We’ll see.
The Brewers Association reports that some consumer studies suggest that people intend to increase their social activities next year. Taproom traffic has been very slowly returning to pre-pandemic levels. If people are willing to go out more, that is good news for the craft beer industry, which increasingly relies on taproom traffic, but will also benefit from a general increase in social spending.
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It’s Not an Open and Shut Case
At the time of the report, the number of small and independent breweries operating in the USA totaled 9,778. Last year marked the second year in a row that the number of closings outpaced the number of openings. In 2025, thus far, the Brewers Association tracked 268 new brewery openings and 434 closings.
That sounds worse than it is, especially if you look at it through beer-colored glasses. The number of closings still represents a relatively low percentage (4.4%) of total operating breweries. Compared with leisure and hospitality businesses broadly, 4.4% is very low. When a brewery closes, beer lovers feel like it was a death in the family. When a restaurant or a nightclub closes, people shrug their shoulders and say, “Okay. You’ll have that.”
Craft Beer by the Numbers
- Count: The number of small and independent breweries in operation in the U.S. in 2025 totaled 9,778.
- Employment: The craft beer industry supported over 443,000 jobs nationwide, fostering local economies and creating opportunities.
- Economic Impact: Craft beer’s contribution to the U.S. economy reached $72.5 billion, demonstrating its vital role in the broader beverage market.
The Trends of 2025
Here are some of the trends that emerged or continued in 2025, according to the Brewers Association.
Consolidation: “This year, there was a continued democratization and expansion of what it means to be a ‘brewer.’ With acquisitions, mergers, and collaborations, the stainless tanks in the background may not be as important as the brand story.”
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We have reported on this on the Washington Beer Blog. An increasing number of consumers are interested in the story behind the business and what the company stands for. Being a brewery that makes good beer is not necessarily enough. Consumers, especially younger consumers, want to know that a brewery’s values align with their own. Having an identity beyond the tank farm, visible from the taproom, is increasingly essential.
New Approaches to Hospitality: “As consumers increasingly seek meaningful opportunities to connect, craft breweries are leaning into their role as community ‘third spaces.’ Whether through more substantial food offerings, an expanded range of beverage types, or more targeted programming, breweries are diversifying their revenue streams by appealing to specific consumer groups.”
Again, something we’ve reported on. It is increasingly important for a brewery’s taproom to offer more than beer. Not just other beverages to appeal to a broader audience, but an experience beyond sitting at a table and drinking beer. Broadly speaking, the most successful taprooms have become beloved neighborhood third places. Maybe they fit a specific niche. Events, community involvement, whatever. Know your audience. Give ‘em what they want.
Growth in Low ABV: “In addition to non-alc’s continued growth streak, there has also been significant expansion in the low- to mid-strength segments (typically defined as <4.0% ABV). Brewers are seeking to capture more occasions that call for great flavor without the buzz.”
There will always be a place for an 8.5% double IPA and an 11% barleywine, but those places are becoming increasingly rare. Craft beer is learning, as the BA pointed out, that it’s not about selling the buzz. The product is honest, local, and aligns with the consumer’s values. The brewery employs people in the community. It is not a faceless corporation. Craft beer needs to sell on the stuff, not the ABV.
Number of Breweries in the U.S.
That stuff I shared earlier about the number of brewery closings sounds really bad, and it isn’t necessarily good, but we need to put it in context. The number of breweries has risen consistently since 1979. At times, it skyrocketed ridiculously. At times, it has been much slower. There were a couple of years where growth was stagnant, but overall, the number has trended up for nearly half a century. We are now in a flat spot.
In the past 20 years, the number of breweries in the USA has increased by a factor of six. In 2005, fewer than 1,500 breweries were operating in the USA. In 2025, there were over 9,700. Yes, two years in a row with more closings than openings is not happy news, but it is far from a bubble bursting, as some people will call it. More realistically, we now find ourselves in a flat spot. Just think of this: there are now nearly 10,000 breweries in the country. That is absolutely remarkable. We’re living in a golden age of beer. Twenty years ago, nobody would have imagined such a thing: 10,000 breweries!
The graph above puts the rapid rise in the number of breweries into perspective. What other industry can show that kind of growth? Maybe if beer were a brand-new product, like social media platforms, the number would make sense. Nobody wants to see breweries close, but it’s essential to keep things in perspective.
Things were tough in 2025, and they likely will not be much easier in the coming year, but we must charge forward. Head up, shoulders back, carry on.
