For the first time, the U.S. craft beer industry is witnessing more brewery closures than new openings due to rising costs and changing consumer habits. This trend poses a significant threat to the sector's growth and future.
The U.S. craft beer industry is experiencing a concerning trend: more closures than new openings for the first time. This shift comes as rising costs and evolving consumer drinking habits put significant pressure on small breweries. The Brewers Association reports that breweries are grappling with increased expenses for grain, raw materials, and shipping, while beer sales are declining nationwide.
These challenges for craft breweries originated during the COVID-19 pandemic and have persisted as economic conditions have transformed. 'The pandemic obviously also had secondary ripples for the economy, for supply chains, and it changed consumer patterns overall,' stated Bart Watson, president and CEO of the Brewers Association, in an interview with FOX Business. Watson observed that while bars and restaurants are witnessing spending levels comparable to pre-pandemic times, consumer behavior has shifted. More individuals are opting for to-go orders and delivery rather than enjoying beers in taprooms.Last year, beer sales dropped 2% nationwide, with Colorado experiencing a 3% decline, according to the Colorado Liquor Enforcement Division. Watson pointed out that some of the most severely affected regions are states with a high concentration of breweries. 'Some of the most challenged regions are some of the most developed, like here in Colorado, the Pacific Northwest, and the West Coast in general,' Watson shared with FOX Business
CRAFT BEER INDUSTRY TRENDS BREWERY CLOSURES ECONOMIC CHALLENGES CONSUMER BEHAVIOR
United States Latest News, United States Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Craft Beer Industry Faces First-Ever Decline in New OpeningsThe U.S. craft beer industry is experiencing a downturn with more closures than new openings for the first time. Rising costs for ingredients and shipping, coupled with declining beer sales, are putting pressure on small breweries. Challenges began during the COVID-19 pandemic and have continued as economic conditions change. Consumer behavior has also shifted, with more people opting for to-go orders and delivery instead of taproom visits.
Read more »
Craft Beer Industry Faces Headwinds: More Closures Than OpeningsThe U.S. craft beer industry is struggling with rising costs and changing consumer habits, leading to a concerning trend of more brewery closures than new openings.
Read more »
Colorado Brewers Cup Celebrates State's Craft Beer SceneThe inaugural Colorado Brewers Cup crowned the best local brews in 26 categories, recognizing the state's thriving craft beer industry.
Read more »
Adapt or Perish: Craft Beer Embraces Change in a New NormalThe craft beer industry is navigating a transformed landscape characterized by declining beer consumption and evolving consumer preferences. This article explores the impact of pandemic-induced changes on drinking habits, the rise of lighter styles, and innovative brewing trends that breweries are adopting to stay afloat.
Read more »
Valentine’s candy-pairing ideas for California craft beer fansit’s time to start thinking about sweets (and sips) for your sweetheart.
Read more »
Pouring beers and beyondSPONSORED: The 2025 Alaska Craft Beer and Barley Wine Festival offers more than ever before.
Read more »