The U.S. craft beer industry continues to face significant economic headwinds, with rising costs, shifting consumer spending habits, and high interest rates contributing to a wave of closures and bankruptcies in 2024 and early 2025.
According to industry data, the total number of operating craft breweries fell to 9,680 in 2024, down from 9,747 the previous year. This marks the fourth consecutive year of decline in new brewery openings, with 434 launches overshadowed by 501 closures.
Economic pressure has taken a toll on both small and established breweries, leading to a series of high-profile Chapter 7 and Chapter 11 bankruptcy filings in the first half of 2025.
Among the most notable closures is The Duck-Rabbit Craft Brewery, an award-winning brand that filed for Chapter 7 bankruptcy protection on April 29. The filing indicates a full liquidation of the company’s assets and permanent closure of operations. Owner Paul Philippon expressed gratitude to customers in a Facebook post but did not provide specific reasons for the decision.
Just weeks earlier, Brüeprint Brewing Company, based in Cary, North Carolina, also filed for Chapter 7 on April 9, opting to shut down operations entirely.
Meanwhile, other breweries are attempting to restructure under Chapter 11 bankruptcy protection. Nebraska Brewing Company, based in La Vista, Nebraska, filed for Chapter 11 on April 28, citing economic uncertainty and supply chain disruptions. Similarly, Alamo Beer Company LLC of San Antonio sought Chapter 11 protection on February 3 to reorganize its debts and continue operating.
Another casualty of the challenging market is Jekyll Brewing, which operated five locations across Georgia and Florida. The Atlanta-area craft brewery ceased operations at all locations on May 11. While owner Michael Lundmark confirmed the closures in a post on the Atlanta Beer Society’s private Facebook page, no bankruptcy filing has been announced.
In Sacramento, Device Brewing Company abruptly shuttered all three of its taproom locations on April 27 following a lawsuit from its landlord over $23,000 in unpaid rent, according to Fox40.com. The company has yet to disclose the reason for the shutdown or whether it plans to seek bankruptcy protection.
The ongoing contraction in the craft beer sector highlights the broader economic challenges facing small and mid-sized businesses amid inflationary pressures, higher borrowing costs, and evolving consumer behaviors. With the pace of closures now outpacing openings, the industry’s outlook remains uncertain.
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