Minneapolis, Minn., September 24, 2026 – The U.S. beer industry faced a challenging market in 2025, as changing consumer preferences, increased competition, and industry consolidation reshaped the category. According to the 2026 Beer Handbook, total U.S. beer volume declined 5.2% to 2.53 billion 2.25-gallon cases, with FMBs the only major segment to achieve volume growth.
Domestic beer represents 77.5% of the total market, while imported beer declined 4.5% to 566.8 million 2.25-gallon cases. The drop marked the first annual decline in imported beer volume since 2009, although imports maintained a 22.5% share of the U.S. beer market.
One of the year's most significant shifts occurred within FMBs and hard seltzer. Combined, the segments increased their share of the beer market from 11.2% to 11.4%, despite a 3.8% decline in total volume. FMBs grew 3.0% to 150.4 million 2.25-gallon cases, while hard seltzer fell 10.3%. As a result, FMBs surpassed hard seltzer for the first time, highlighting consumers' continued interest in flavor-driven and occasion-based beverages.
Craft beer remained under pressure, with volume falling 5.9%, its third consecutive annual decline. Craft retained its position as the fourth-largest U.S. beer segment, with an 11.1% share. Competition from FMBs, RTDs, imported beer and non-alcoholic alternatives continued to challenge craft brewers for consumer attention.
The craft brewing sector also underwent significant restructuring. In 2025, 481 craft breweries closed compared to 300 openings, bringing the number of operating craft breweries to 9,578. As the industry moved beyond its rapid-growth era, profitability, operational efficiency, distribution and consumer loyalty became increasingly important.
Consolidation extended beyond craft beer as mergers and acquisitions reflected a broader industry focused on scale, portfolio optimization, and access to new growth opportunities. Larger regional brewers, brewery collectives, and multi-brand platforms increasingly sought ways to improve efficiency and strengthen distribution.
Despite the industry's volume challenges, opportunities remain. Taprooms, brewpubs, distinctive products and strong local identities continue to give craft breweries ways to differentiate themselves, while beer suppliers are increasingly focused on specific consumers and occasions rather than relying on overall category growth.
Looking ahead, non-alcoholic and moderation-focused products, flavor and packaging innovation, convenience formats, and experiential marketing will remain important. Sports, music, gaming, outdoor recreation, heritage and brand storytelling also provide opportunities for meaningful consumer engagement.
The 2025 results illustrate an industry evolving rather than disappearing. As beer moves into 2026 and beyond, growth will increasingly depend on brands that provide consumers with a compelling reason to choose beer for a particular moment—through distinctive products, relevant experiences and strong connections to consumers' lifestyles.
About the 2026 Beer Handbook
The Beverage Information Group’s 2026 Beer Handbook is a comprehensive source of information on U.S. beer trends. It includes volume consumption information by category and market, tracks leading brands, and reports historical data.
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