The craft beer industry is navigating a turbulent period marked by declining sales, brewery closures, and shifting consumer habits. Aging drinkers are rethinking their relationship with alcohol, while competition from cannabis, ready-to-drink cocktails, and non-alcoholic beverages adds further pressure. According to NIQ data, beer sales dropped by 1% in dollar terms and 3.2% in volume year-over-year as of October 26, though non-alcoholic beer saw a significant surge, with dollar sales up 26.6% and volumes rising 21.6%.
In response, breweries are streamlining their portfolios, focusing on flagship beers, and exploring new strategies to stay relevant. “Focus will be the word of the year,” says Rob Day, founder of the Better Crafted Business consultancy. Industry leaders emphasize the need for clarity and adaptability. “We can’t be all things to all people,” says Alex McNamara, senior brand manager for Redhook Brewery and Widmer Brothers.
Here are six trends shaping the future of the craft beer industry:
1. Breweries Embrace Approachability Over Extremes
The era of novelty and excess in craft beer is waning. Consumers are growing weary of dessert-inspired imperial stouts and extreme beers. “Our biggest imperative is to reinstate the integrity of craft beer,” says Jason Oliver, founding brewmaster at Devils Backbone Brewing, which is returning to traditional offerings like its Vienna Lager. Similarly, Prost Brewing is focusing on moderate-strength European lagers, emphasizing quality and drinkability. Living the Dream Brewing’s founder, Jason Bell, notes that customers now prefer approachable, dependable beers like cream ale and red ale.
2. Ingredient Transparency and Sustainability Take Center Stage
As environmental concerns grow, breweries are highlighting ingredient provenance and sustainable practices. Aslan Brewing released the world’s first Regenerative Organic Certified beer, while Ferment Brewing partnered with the Oregon Wildlife Foundation to produce an IPA with Salmon-Safe hops and malt. Brooklyn Brewery is championing fonio, an ancient African grain, in beers like Fonio Rising and Fonio Stout. “The consumer has given us permission to explore, and that creates new avenues for growth,” says CEO Eric Ottoway.
3. Flagship Beers Regain Prominence
Consumers are gravitating toward trusted, familiar beers. Lawson’s Finest Liquids is celebrating the 10th anniversary of its flagship double IPA, Sip of Sunshine, while Allagash Brewing is doubling down on its witbier, Allagash White. Topa Topa Brewing reports that up to two-thirds of its sales come from its flagship IPA, Chief Peak. “Beer quality and consistency will be a table stake with consumers,” says Lawson’s CEO Adeline Druart.
4. Breweries Expand Beyond Beer
To counter declining beer sales, breweries are diversifying into other beverages. TailGate Brewery offers hard seltzer, non-alcoholic teas, and cider, while Seventh Son Brewing produces hard seltzer, cold brew coffee, and ready-to-drink cocktails. Fieldwork Brewing has expanded into sodas, hop water, and non-alcoholic beers. “We look at ourselves more as a beverage company,” says CEO Barry Braden.
5. Food Becomes a Key Taproom Draw
Breweries are increasingly becoming destination restaurants to attract customers. Moody Tongue Brewing, which started as a production brewery, now operates Michelin-starred restaurants in Chicago and New York. Switchback Brewing’s new beer garden offers a full menu, while Side Project Brewing introduced smash burgers to complement its beers. “Food can help ease drinkers into beers they might not try,” says head brewer Drew Durish.
6. Innovation in Hops and IPAs
The IPA remains a staple, but brewers are experimenting with new hop varieties and technologies to create more versatile and aromatic offerings. Sierra Nevada Brewing is targeting seasonal and occasion-based drinking with releases like Trail Pass Hazy IPA and Hop Tropical IPA. WeldWerks Brewing is exploring wild hops like Elani, while Buoy Beer and Half Acre Beer are using the newly released Krush hop for its fruit-cocktail flavors. High-tech innovations, such as Haas’s Euphorics and Yakima Chief Hops’ HyperBoost, are also enhancing hop intensity and aroma.
As the craft beer industry adapts to these trends, the focus remains on quality, innovation, and meeting evolving consumer demands. “It’s 100 percent business, and breweries have to adapt,” says Jason Bell of Living the Dream Brewing. The next 12 months will be critical for breweries as they navigate these challenges and opportunities.
You Might Be Interested In:
