The year in craft beer: growth slows, strategy shifts but success still brews

Craft beer production declined in 2024. Closures outpaced openings. Yet, amid the challenges, several standout breweries expanded, innovated and even went international. Welcome to the new era of American craft brewing — one defined less by breakneck growth and more by resilience and reinvention. First, the big news. The Brewers Association just released its annual production figures for the U.S. craft brewing industry, focused on 2024. And…

Craft beer output falls 4% in 2024

The Brewers Association’s latest report confirmed what many in the industry already sensed: production dropped again. U.S. craft brewers produced 23.1 million barrels in 2024, down 4% from 2023. It marked the largest volume decline since the 2020 pandemic hit. Still, craft’s market share held steady at 13.3% of total beer volume. The broader U.S. beer market also shrank — down 1.2% — so the flat share suggests that craft isn’t losing ground, just adjusting to a shrinking pie. From the press release:

“In a mature market, not every year is going to be defined by substantial growth,” said Matt Gacioch, the Brewers Association’s staff economist. “While progress may not come in additional production volume, it can still come in honing operations, business practices, and world-class beer. Even in this challenging environment, small brewers have demonstrated that they have the skills and resilience to fight through this period to be better positioned for the months and years ahead.”

Brewery count dips for the first time in nearly 20 years

In 2024, there were 9,612 operating U.S. craft breweries at year’s end, down from 9,730 a year prior. In 20024, there were 1,934 microbreweries, 3,389 brewpubs, 3,695 taproom breweries, and 266 regional craft breweries, according to the Brewers Association report. These numbers are the first annual decline since 2005. The BA counted 434 openings and 501 closures — a net loss of 67 breweries. Openings have now declined for four straight years, a sign of a market maturing, tightening, and consolidating. Still, the closure rate — around 5% —remains relatively low for a sector under such intense pressure, said the BA.

Taprooms drive jobs, onsite sales support revenue

According to the BA report, craft beer’s total retail dollar value rose to $28.9 billion, a 3% increase. That’s despite lower volume, reflecting price increases and strong taproom sales. Craft accounted for 24.7% of total beer retail dollars. The industry also added jobs. Craft brewing employment climbed to 197,112, up 3% over 2023. That growth came primarily from taproom and brewpub expansion — breweries adding hospitality-focused staff and boosting community engagement. From the press release:

“There is still plenty of room for optimism in our industry,” added Gacioch. “Brewers’ proven ability to connect with their customers’ evolving preferences will lead to more opportunities for craft beer success stories into the future.”

Context: The whole beer sector is slowing

Zooming out, the entire beer category faced a rough 2024. A quick look at the Beer Institute’s taxable removals for February 2025 showed a 14.9% drop year-over-year. For 2024 overall, shipments were down 3.4%, nearly 5.2 million fewer barrels than the year before. Meanwhile, the National Beer Wholesalers Association’s Beer Purchasers’ Index (BPI) showed sharp contraction. The craft segment scored just a 20 in March 2025 — well below the 50-point benchmark that signals growth, and down from 35 a year prior. Distributors aren’t just cautious. They’re actively cutting back on craft orders.

RTDs and NA beers complicate on-premise comeback

CGA by NIQ’s latest On-Premise Measurement data reveals another shift. While beer still holds a dominant 40.5% share of bar and restaurant sales, ready-to-drink (RTD) beverages and non-alcoholic (NA) beers are gaining ground. RTDs grew fastest in high-energy venues like nightclubs and bars, gaining 0.6 and 0.5 percentage points in share, respectively. NA beer is also on the rise — even on-premise — on-premise sales soared 33.7% year-over-year, according to this CGA by NIQ from July 2024. IPAs and stouts led that growth, up over 170% and 130%. Craft brewers have responded by diversifying portfolios and enhancing taproom experiences. In 2024, many leaned into hospitality — offering new food options, cocktails, and family-friendly environments. The goal? Broaden appeal, extend visits, and drive direct-to-consumer revenue.

Just some fun success stories: TailGate, Abita and NoFo find fresh paths to growth

Amid the noise, several breweries stood out with big moves and bigger ambitions when taking a quick look at just the last few weeks of news..

TailGate Brewery doubled production capacity at its Nashville HQ (picture above). The expansion includes a new 30-bbl brewhouse, a 100-bbl lagering tank, and a second centrifuge. Now with nine taprooms, a cider program, and THC beverages, TailGate is a Tennessee success story built on quality, diversity, and Detroit-style pizza.

Abita Brewing opened a second location in New Orleans — a 7-bbl system designed for experimentation. It gives the heritage Louisiana brand a physical presence in the city and a platform for small-batch innovation. It’s just a fun way to see a classic brand still expanding.

NoFo Brew Co expanded into Ireland via a partnership with Drogheda United FC. The Georgia-based brewery introduced beers like Drogs Lager and Cowboy’s Payday to Irish football fans — its second international soccer partnership in as many years.

What’s next for craft brewers?

The Brewers Association says 2025 could bring more consolidation and pressure. Rising costs, possible new tariffs, and health-driven consumer shifts will continue to challenge small brewers. But there’s opportunity too. Non-alcoholic beer is booming. Taprooms remain powerful revenue engines. Local storytelling and community engagement still resonate. Independent brewers who stay nimble — who adapt product lines, rethink hospitality, and find creative partnerships — can still thrive. The growth curve may be flattening, but the craft beer story is far from over. Time for a beer.