Ohio brewers face tough market as craft beer boom fades
The craft brewing market is in the tank.
Why it matters: After three straight years of negative growth, the once-booming craft beer industry is struggling as market saturation and shifting drinking habits reshape the industry.
State of play: Craft beer production hit 23.1 million barrels in 2024 — a 4% decline compared to the previous year and the largest drop in industry history outside the pandemic, according to data released this month by the Brewers Association.
The number of small, independent breweries operating in the U.S. decreased for the first time in 20 years, with 501 closures compared to 434 openings.
Between the lines: The numbers represent a maturing and highly competitive marketplace, says Matt Gacioch, the association's staff economist.
"In a mature market, not every year is going to be defined by substantial growth," Gacioch said in a statement.
Zoom in: Forty-six breweries opened in Ohio and 36 closed in 2024, including Akronym in Akron, Avon Brewing Co. in Avon and Pulpo in Willoughby.
While openings have continued to outpace closings, this is the tightest margin between the two in more than a decade, according to the Ohio Craft Brewers Association.
Yes, but: OCBA's Deputy Director Justin Hemminger tells Axios that many independent brewers are now producing alternative products — such as seltzers, ciders, ready-to-drink cocktails, and hemp-derived THC beverages — to meet consumer demand.
What they're saying: "One of the strengths of the small brewery business model is the ability to quickly pivot to meet shifts in customer preferences," Hemminger says.
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