2024 was a challenging year for the U.S. craft beer industry.

For the first time since 2005, more small and independent breweries across the nation closed than opened, according to the Brewers Association.

The industry group tallied 399 closures compared to 335 openings in a mid-December report.

The trend held true in every state in the Pacific Northwest and California.

Matt Gacioch, Brewers Association staff economist, said Washington had 21 closures of small and independent breweries and 18 openings, while Oregon had 18 closures and nine openings, and Idaho had nine closures and seven openings.

California had 48 breweries close while 26 opened, Gacioch added in an email.

The total number of small and independent breweries in the country was more than 9,700.

Ripples into farming

The down year for craft beer creates ripples into farming in Washington, Idaho and Oregon.

American hop production was 87.1 million pounds in 2024, down 16% from the previous year. Experts said the industry continues to deal with a glut of production, plateauing consumer demand for beer and palates shifting toward beers that aren’t as hop heavy as India pale ales.

Legal marijuana and health trends that have encouraged people to consume less alcohol also have impacted adult beverage segments.

The value of hops production — almost all of the nation’s hops comes from the Pacific Northwest — plummeted 21% to $445 million in 2024, according to the USDA’s National Hop Report.

Beer production lagging

The Brewers Association midyear survey had craft beer production on pace to drop 2%, compared to 1% over the 2023 calendar year. However, third quarter data suggests an additional dip for 2024 overall.

Still, craft beer may be doing better than traditional domestic sales, as the overall beer category dipped 5% in 2023, the latest year full data was available, Gacioch said.

“2023 was a year of decline for many beverage alcohol categories,” he added.

For craft brewers, non-alcohol beer sales soared, however, with sales up 30% compared to 2023 data through October.

After years of pushing the envelope with innovation, brewers also are focusing on proven products.

The craft beer industry supports nearly 460,000 jobs and had an economic impact of $77 billion, according to the Brewers Association report.

“The industry is poised for another challenging year in 2025, with additional uncertainty, potential tariffs and rising costs, retailers and distributors looking to simplify offerings, and potential new dietary guidelines for beverage alcohol,” the report states.

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