As the craft beer industry navigates a period of subdued growth, savvy brewers are poised to capitalise on emerging craft beer trends in 2025. From the rising popularity of health-conscious and low/no-alcohol offerings to the surge of cannabis-infused “fifth category” beverages, the beer landscape is undergoing a transformative shift.
Key Takeaways
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- Craft beer industry revenue in the US is expected to decline at a CAGR of 3.8% from 2020-2025, reaching an estimated £7.2 billion in 2025[1].
- Health-centric choices are accelerating, with 25% of consumers planning to moderate their alcohol intake[2].
- Cannabis beverages are trending sharply upward, with 74% of consumers reducing alcohol use due to a preference for cannabis[4].
- Premiumisation and value are both crucial, as 20% of consumers plan to spend more on higher-quality beer and F&B experiences, while 50% prioritise value[2].
- Breweries must balance premium, unique offerings with value-focused selections to meet diverse consumer demands[2].
Industry Performance: Subdued Growth, Pockets of Opportunity
The craft beer industry in the US has faced a period of subdued growth, with revenue declining at a CAGR of 3.8% from 2020-2025, reaching an estimated £7.2 billion in 2025[1]. Craft beer sales volume dropped by approximately 3.3% in 2024, continuing a three-year downward trend[3]. For the first time in nearly 20 years, more US craft breweries closed than opened in 2024[5]. However, certain segments, like IPAs, remain the single largest and most influential product[1].
Health-Conscious and Low/No-Alcohol Beers
As consumers become increasingly health-conscious, one-third now plan to opt for healthier food and drink options, with 25% intending to moderate their alcohol intake[2]. This trend has fueled the rapid mainstream adoption of low-alcohol and non-alcoholic beers, driven by the “sober curious” movement[2][6]. Expect to see increased innovation in session IPAs (usually under 3% ABV), hop-forward non-alcoholic beers, low-calorie, gluten-free, and functional ingredient brews (e.g., with electrolytes, CBD, or adaptogens)[6]. Examples of brands capitalising on this trend include Athletic Brewing (non-alcoholic), Lagunitas IPNA (non-alcoholic IPA), and WellBeing Brewing (functional beers).
The Rise of Cannabis-Infused “Fifth Category” Beverages
The craft beer industry is also witnessing the sharp upward trend of cannabis beverages, with 78 million Americans consuming cannabis and 30% of adults now identifying as cannabis consumers[4]. The “fifth category” (including THC, CBD, Delta 8/9 beverages) has recorded over £70 million in sales, with intensifying interest in states like Minnesota allowing THC-infused drinks in taprooms[4]. Top examples include Plift (hemp drinks) and Cycling Frog (Delta 9 THC seltzers/lemonades). Notably, 74% of polled consumers said they reduced alcohol use due to a preference for cannabis, which 88% view as a healthier option[4].
Premiumisation and Value
The craft beer landscape is characterised by a dual focus on premiumisation and value. 20% of consumers plan to spend more on higher-quality beer and F&B experiences[2], while 50% of on-premise visitors prioritise value, actively seeking deals and promotions[2]. To navigate this dynamic market, breweries are leveraging premium, unique offerings (such as barrel-aged and limited editions) while still needing to provide value-focused selections to cater to diverse consumer preferences.
Conclusion
The craft beer industry in the UK is undergoing a transformative period, with both challenges and opportunities on the horizon. By staying attuned to emerging craft beer trends like health-conscious choices, cannabis-infused beverages, and the balance of premiumisation and value, savvy brewers can position themselves for success in 2025 and beyond.
Sources:
IBISWorld
CGA by NIQ
Beverage Industry
Hop Culture
Marketplace
Fertile Ground Beer
OHBEV
