The craft beer industry has been in trouble over the past two years. According to the Brewers Association’s report, total U.S. beer production and imports will decline by 1% in 2024, and craft beer sales will decline by 4% in 2024 and approximately 5% in 2025.
According to Beerbound, the Beer Research Institute said domestic beer shipments also fell by 5.9% in 2025, resulting in a loss of approximately 8.68 million barrels of beer.
Shipments in 2025 will reach 139 million barrels, down from 147.7 million barrels in 2024.
The Brewers Association reports that consumer demand and alcohol consumption rates among younger generations have also declined.
According to the 2026 North American Craft Beer Market Report released by Mordor Intelligence, “Raw material costs have become a significant constraint for the North American craft beer market, with prices for basic ingredients such as barley malt and hops, and packaging materials such as aluminum cans rising significantly.”
“The impact of increased costs is particularly severe on production economics, forcing breweries to revise their pricing strategies and operating models,” the report said.
All this bad news has led to business closures, with more breweries closing than openings as of mid-December, with 434 breweries closing and 268 openings, Brewbound reported on social media.
The closure is devastating for craft beer lovers, who are disappointed to see their favorite beer bars close.
Businesses that have failed this year include the owners of The Brewer’s Art, a historic craft brewery in Baltimore, which filed for Chapter 7 bankruptcy to liquidate its assets after abruptly shuttering operations.
According to the Bankruptcy Observer, public court electronic records show that Old Line Brewers LLC filed an application with the U.S. Bankruptcy Court in Maryland on February 13, listing assets ranging from $100,000 to $1 million and liabilities ranging from $1 million to $10 million.
After 30 years in business, Brewers Art brewery and restaurant closed suddenly on February 2 and posted a sign in the front window, WMAR-TV reported.
“Dear Friends, Sadly we have to close our doors permanently today, February 2, 2026. Thank you all for your support over the years. Thank you for the memories. Best wishes. The Art of the Winemaker,” the sign reads.
The brewery owner did not provide a reason for closing its business, but the Maryland Comptroller imposed an $85,000 lien on The Brewer’s Art on December 12, 2025, WMAR reported.
