Rising costs have hit the craft beer industry, with the overall number of craft brewers in the U.S. falling for the first time since 2005.
Rising costs have hit the craft beer industry, with the overall number of craft brewers in the U.S. falling for the first time since 2005.
The Brewers Association reports the total number of U.S. craft breweries fell to 9,680 last year, down from 9,747. In 2024, 434 new breweries opened, though 501 closed. New openings fell for the fourth consecutive year last year.
Craft Brewers produced 23.1 million barrels of beer in 2024, a 4% decrease. Share by volume was unchanged at 13.3%. The overall U.S. beer market declined 1.2% in volume last year.
The Brewers Association notes small brewers, already grappling with rising ingredient costs, changes in consumer preferences, and more competition in a saturated market, now face new challenges from tariffs on brewing equipment, steel kegs, aluminum cans and key ingredients like hops and malt.
The report also notes a 3% increase in employment in the craft brewing industry, a rise it attributes to a shift toward hospitality-focused models like taprooms and brewpubs.
Craft beer remains a force in the beer industry, with $28.9 billion in retail dollar value last year. Craft beer accounts for 24.7% of the total beer market.
The Brewers Association’s annual list of the 50 largest craft brewers no longer has any in Maryland or Virginia. The 2023 acquisition of Maryland’s Flying Dog Brewery by FX Matt Brewing Company takes it off the list. New York-based Matt ranks No. 7 on the top 50 craft brewers list, with other brands that include Saranac and Utica.
The Brewers Association defines a craft brewer as one that produces less than 3% of total U.S. annual beer sales and is less than 25% owned or controlled by a beverage alcohol industry company that is not itself a craft brewer.
By that definition, Yuengling remains the No. 1 craft brewer, followed by Boston Beer Co, Sierra Nevada Brewing Company. Tilray Beer Brands and Duval Moortgat USA.
It has been almost a decade since Virginia had a top 50 craft brewer, after Anheuser-Busch InBev acquired Devils Bacon Brewing Company in 2016.
While no local craft brewers make the top 50 for production, the region is still a major craft beer region. There are almost 500 registered craft brewers in Virginia, Maryland and D.C., up from just 87 a decade ago. Half of Virginia’s craft brewers are located in Northern Virginia, and almost half of craft beer production in Maryland is in Baltimore County.
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