BOULDER — More breweries closed than opened in 2024, and the Boulder-based Brewers Association, a trade group for small and independent American craft brewers, is forecasting another tough year in 2025.
“As the craft beer landscape evolves, the industry is poised for another challenging year in 2025, with additional uncertainty, potential tariffs and rising costs, retailers and distributors looking to simplify offerings, and potential new dietary guidelines for beverage alcohol,” BA said in its annual Year in Beer report. “Market pressures will likely lead to continued consolidation and alliances to cut costs and utilize excess capacity.”
In its mid-year survey, BA estimated that production was down industrywide about 2%. The association now thinks that the craft industry will see an even “weaker performance” for the full 2024 year when the numbers are eventually crunched.
“Craft has been going through a painful period of rationalization as demand growth has slowed and retailers and distributors look to simplify their offerings or add options for flavor and variety outside of the craft category,” Bart Watson, BA’s vice president of strategy and membership, said in a prepared statement. “That said, breweries have reacted to these changes by focusing on distribution, continuing to innovate in their taprooms and brewpubs, creating groups and partnerships, and offering a wider range of beverages in their portfolios.”
There were 9,736 craft breweries operating in 2024, a year that saw 335 new brewery openings and 399 closings.
The industry supported 460,000 jobs across the country and contributed $77.1 billion to the economy, the report said.
The popularity of non-alcoholic beer continues to grow, with year-over-year sales up more than 30% from January through October.
Breweries have also begun offering more cocktail, food and family-friendly options in their brewpubs.
“Brewers are experiencing critical challenges at the crossroads of a high-cost environment paired with slowing growth,” Watson said in a statement. “To grow in 2025, brewers must do what they do best: adapt. They also will need to continue to do the hard work to find ways to tell their story and differentiate their brands against the competition.”
Lucas High is a reporter for BizWest and his work is regularly featured on KUNC. You can reach Lucas at lhigh@bizwest.com.
