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Brewery Closures Rise: Economic Woes Hit Craft Beer
19 Nov
Summary
- Craft brewery closings have outnumbered openings throughout 2025.
- Inflation, health trends, and competition are major industry challenges.
- One brewery sale ensured legacy, not just closure, for a Buffalo brand.
The craft beer industry is experiencing a challenging period, marked by an increasing number of brewery closures throughout 2025. Economic factors such as inflation and tariffs, coupled with a consumer shift towards healthier lifestyles and heightened competition, have taken a toll on taprooms nationwide. The Brewers Association's 2025 Midyear Market report indicates that operational breweries have declined compared to the previous year.
This trend of declining craft breweries has been evident since 2024, with numbers falling from 2023. While some businesses have filed for bankruptcy before shutting down, others have ceased operations without formal proceedings. This widespread economic pressure has led many to believe that every brewery closure signifies financial hardship.
However, not all closures indicate financial distress. For instance, FX Matt Brewing Co.'s Flying Bison Brewing Company taproom in Buffalo, N.Y., is set to close its doors on November 29th due to a brand sale. Hamburg Brewing Co. has acquired Flying Bison's recipes and trademarks, ensuring the brand's recipes and legacy will continue to be produced and distributed.
