U.S. alcohol industry faces declines in craft spirits and brewery closures

The United States alcohol industry is facing significant contractions, evidenced by a third consecutive year of decline in the craft spirits category and major brewery closures.

According to the 2026 Craft Spirits Data Project, craft spirits sales fell 3.7% in 2025 to $7.3 billion. The sector saw an 8% drop in sales volume, with the number of active craft distillers decreasing by 6.6% to 2,131. For the first time, distillery closures outpaced new openings in 2025. Employment in the sector also dropped by over 25% compared to the previous year. Factors contributing to the decline include distributors reducing portfolios due to excess inventory, declining export markets following tariffs, and state-level restrictions on direct-to-consumer shipping.

In the beer sector, Diageo is closing its Guinness brewery in Halethorpe, Maryland. The facility, which opened in 2018, served as an experimental site and a production hub for blonde lager. Diageo attributed the closure to shifting consumer demands, high operational costs, and broader economic pressures as part of a $1 billion restructuring plan. This follows a trend of declining alcohol consumption in the U.S., with Gallup reporting that only 54% of Americans currently identify as alcohol drinkers, the lowest level since 1939.