The craft beer industry has struggled over the last two years, with overall U.S. beer production and imports down 1% in 2024 and craft brewer volume sales declining 4% in 2024 and about 5% in 2025, according to a Brewers Association report.
Domestic beer shipments also declined 5.9% in 2025, losing about 8.68 million barrels of beer, according to the Beer Institute as Beerbound reported.
Shipments in 2025 reached 139 million barrels, a decline from 147.7 million barrels in 2024.
Consumer demand and alcohol consumption rates of younger generations also declined, the Brewers Association reported.
“Raw material costs have emerged as a significant constraint in the North American craft beer market, with substantial increases in the prices of essential ingredients, such as malted barley and hops, alongside packaging materials like aluminum cans,” according to a 2026 North American Craft Beer Market Report by Mordor Intelligence.
“The impact of these cost increases has been particularly severe on production economics, forcing breweries to revise their pricing strategies and operational models,” the report said.
All of that bad news led to businesses shutting down, as brewery closures outpaced openings with 434 shutting down and 268 opening by mid-December, Brewbound reported on social media.
The closings were devastating for craft beer fans who were disappointed to learn their favorite brewpubs had shut down.
Among the closings this year has been the owners of a longtime Baltimore craft brewery, The Brewer’s Art, which filed for Chapter 7 bankruptcy to liquidate its assets after suddenly shutting down its business.
Old Line Brewers LLC filed its petition in the U.S. Bankruptcy Court for the District of Maryland on Feb. 13, listing $100,000 to $1 million in assets and $1 million to $10 million in liabilities, according to Public Access to Court Electronic Records as reported by Bankruptcy Observer.
The Brewers Art abruptly shut down its brewery and restaurant on Feb. 2, after 30 years of operating, with a sign posted on its front window, according to WMAR-TV.
“Dear Friends, Sadly we had to permanently close our doors today, February 2, 2026. Thanks to all of you for all of your support over the years. Thanks for the memories. Best Wishes. The Brewer’s Art,” the sign said.
The brewery owner did not state a reason for closing its business, but the Comptroller of Maryland had placed an $85,000 lien against The Brewer’s Art on Dec. 12, 2025, WMAR reported.
