The Brewers Association (BA), representing small and independent American craft brewers, has released its annual production figures for the U.S. craft beer industry, showcasing a maturing market in the face of evolving challenges. In 2024, craft brewers produced 23.1 million barrels of beer, marking a 4.0% decrease from 2023. Despite this decline, the craft beer sector’s market share by volume held steady at 13.3%, unchanged from the previous year, while the overall U.S. beer market saw a slight contraction of 1.2%.
Despite the drop in production, the craft brewing sector saw positive growth in employment. In 2024, jobs in the industry rose to 197,112, reflecting a 3.0% increase compared to the previous year. This growth is attributed to a shift towards hospitality-focused business models, such as taprooms and brewpubs, which continue to contribute significantly to local job creation.
In terms of retail performance, the retail dollar value of craft beer increased by 3% in 2024, reaching an estimated $28.9 billion. Craft beer now accounts for 24.7% of the total U.S. beer market in retail dollar sales. The rise in dollar value reflects not only pricing adjustments but also robust sales in onsite locations, which outpaced distributed sales in many areas.
The number of operating U.S. craft breweries stood at 9,612 in 2024, which includes 1,934 microbreweries, 3,389 brewpubs, 3,695 taproom breweries, and 266 regional craft breweries. However, this marks the first decline in the overall number of U.S. craft breweries since 2005. The total number of breweries dropped to 9,680 from 9,747 in 2023, as 434 new breweries opened while 501 closed. This decrease in new openings reflects the highly competitive nature of the craft beer market, although the closure rate remained relatively low at about 5%.
“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 the skills and resilience necessary to position themselves for future success.”
Small brewers are currently facing a range of challenges, including rising costs for ingredients, shifting consumer preferences, and heightened competition in a crowded marketplace. Tariffs on imported brewing equipment, steel kegs, aluminum cans, and essential ingredients like hops and malt are adding further financial strain. These pressures are particularly burdensome for small, independent breweries, which often operate on tight profit margins. As a result, many are postponing expansion plans, raising prices, or absorbing losses—further exacerbating the challenges faced by the industry.
Nevertheless, Gacioch remains optimistic about the future. “There is still plenty of room for optimism in our industry,” he said. “Brewers’ ability to adapt to evolving consumer preferences will lead to more success stories for craft beer in the years to come.”
Additionally, the Brewers Association has published its annual rankings of the top 50 craft brewing companies and overall U.S. brewing companies by beer sales volume. Of the top 50 overall U.S. brewing companies, 41 are small, independent craft brewers. Gacioch noted that, despite an increasingly competitive distribution landscape, the top 50 list highlights some of the most enduring and iconic names in craft beer. In 2024, eight new breweries entered the top 50 craft list, a testament to the ongoing innovation and adaptability of craft brewers.
“Enduring brands continue to resonate with drinkers—regardless of size or location,” Gacioch concluded. “In 2024, brewers are still finding ways to thrive, proving that there is ample room for growth and success in the craft beer industry.”
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