Three Takeaways From The CBC & BrewExpo
As the industry grapples with declining growth, is this simply a cyclical event, or a sign of a more permanent shift in beverage consumption for craft beer?
Attending the craft beer industry’s largest conference as perhaps the only media outlet from the low-and-no alcohol space felt, at times, like being a vegetarian at a BBQ festival. The people are nice and the smells are good, but seriously, who the hell invited that guy? ‘That’ guy being us, of course. Packing our Non-Alcoholic N/ATION ballcap and an assortment of branded shirts, we set out to understand what was happening in the craft brewing industry, how brewers felt about current trends, and honestly, what the industry thinks about the growth of alcohol-alternative beverages in general. Feelings about non-alcoholic beer felt particularly nuanced. NA craft beer IS still craft beer, and you don’t have to look any further than Athletic Brewing’s meteoric rise to becoming the 8th largest craft brewer in the U.S. to see the muscle behind that metric. But to some in the industry, the reality is many remain less excited about the category, with skepticism of just how large and long-term the growth there may be.
On the topic of metrics, the overall numbers aren’t positive for craft beer, which according to the Brewers Association’s own data saw -4% growth last year (yes, negative growth), remarkably consistent across various sub-segments of the industry. Echoing that point, more breweries closed than opened in 2024, a far cry from the pre-COVID years that saw many new brewers entering the market on a regular basis. What’s causing the declines? In the words of new Brewers Association President Bart Watson, it’s a combination of factors that include post-COVID social behaviors, technology usage, changes in beverage consumption, as well as health and wellness trends. As we sat through two and a half days of discussions, panels, and hallway chatter, the following were the three biggest questions we took from the event.
Does Gen Z Really Hate Beer/Alcohol?
While there were little to no arguments about things like economic headwinds and shifting consumer tastes around beverages, discussions of the drinking habits of Gen Z felt far more polarizing. On one hand, it’s inarguable this generation has moved at least somewhat away from beer and more toward cannabis than older counterparts, but by how much and how permanent that change will be was very hotly debated. January, 2025 data from NCSolutions reported that 65% of Gen Zers planned to drink less alcohol in 2025, while 38% of them expressed interest in wanting to try THC and CBD-infused drinks. There is strong anecdotal evidence that this is playing out in clubs and bars where people in this age group tend to gather, as more and more consume something non-alcoholic. However, for many in the craft beer industry the jury is still out. The central argument made on this side is that Gen Z still has plenty of time to catch-up to (or even outperform) older generations in alcohol and beer consumption, particularly as they get into the higher-earning years. The Brewers Association’s own internal data points to Gen Z indexing higher than any other generation besides the Millennials for craft drinkers, even if they aren’t drinking as much or as often. Ultimately the answer to this question could determine what the long-term outlook for craft beer may look like.
Are THC Bevs A Frenemy?
As expected, the world of cannabis-infused drinks was both a hot and frequent topic at CBC, particularly evident in how often they showed up in audience Q&As. There is growing recognition that these drinks are here to stay (government regulators be damned), and that younger consumers in particular like to drink their weed. However, what seemed far more up for debate was whether this category should be considered a friend or foe. Many breweries have gotten into the THC game, which we’ve covered extensively in recent months. Ryan Bandy, Chief Business Officer of Indeed Brewing spoke on a THC panel about the new demographics they’ve seen since expanding into cannabis beverages, including the unlikely combo of 22 year old Gen Zers and 65+ grandmothers being the most visible newcomers. Those opposite-end demographic groups are illustrative of just how mainstream and relevant the category is becoming. But there is definitely a friction point for many breweries who got into the craft to make beautiful liquid with malt and hops, not seltzers and RTD cocktails. And there are plenty of new competitors from outside the brewery space capturing large market share for this segment.
Will Recession History Or Health & Wellness Win Out?
One of the more compelling data-driven panels was helmed by Suzy Badaracco, President of Culinary Tides, who shared insights beyond just alcohol to put the current state of craft beer in some perspective. In her presentation she predicted a rise in alcohol consumption if the country slides into a much-predicted economic slowdown or recession, something that as she pointed out, consistently has led to an increase in alcohol consumption for decades, presumably as a coping mechanism. But she also talked about the psychology behind the current health and wellness trend that has played a huge role in the growth of the non-alcoholic category. A primary driver of such behaviors, Badaracco noted, is wanting a sense of control and reward in an otherwise uncertain world. While we as consumers can’t control what may happen around us, we can dictate our own consumption and feel good when visible results emerge. How those two seemingly competing forces play out against one another will be fascinating, if indeed a slowdown is in the cards.
Want to hear more from the Craft Brewers Conference and BrewExpo? Listen to our podcast recap episode, above, featuring interviews with Julie Rhodes of Kick Beverage Company, and Jason Pickle of Volunteer Botanicals, as well as insights from Brewers Association President, Bart Watson.