The craft brewing business enjoyed an extended boom, but it seems like the rager might be cooling off. For the first time in two decades, more craft breweries closed than opened in the U.S. in 2024, and overall production declined by 4 percent to 23.1 million barrels. According to Axios, it was the largest drop in the industry's history outside of the pandemic and the third consecutive year of negative growth.
It's a brutal fall for a once-thriving industry, and fancy suds isn't the only segment of the alcoholic beverage industry to fall on hard times. According to ThinkGlobalHealth, sales are down overall for both beer and wine, and spirits aren't faring much better.
The reason: Americans just don't drink as much as they used to, especially younger Gen Z consumers whose alcohol consumption is similar to Americans over the age of 55. At least some of this decline is related to concerns over the potential health risks — according to Gallup, fewer than 4 in 10 young adults report to regular alcohol consumption, and are more likely than middle-aged and older adults to view drinking as unhealthy.
But while the alcohol market continues to slump, the non-alcoholic beverage market is experiencing a boom. Alcohol-free alternatives to popular beverages are proliferating in grocery and liquor stores, and some bottle shops have ditched the hard stuff altogether to focus entirely on non-alcoholic versions of popular beers, wines, and cocktails.
