Breweries NAICS 312120

Nov 13, 2025 - Beer’s Affordability Crisis

• An affordability crisis is taking the fizz out of the craft beer market, according to Andrew Heritage, chief economist at the beer industry trade association Beer Institute. Heritage says that as Americans struggle financially, they tend to trade down on non-essentials like beer, with more drinkers opting for brands in the economy segment, like Miller High Life or Busch Light, found at discounters like Costco or Sam's Club, over craft brews that can only be found at high-priced breweries. He says that’s proof that consumers are looking for a lower price point. The economy isn't the only thing driving changes in beer consumption. Over the last 20 years, craft beers have been trending, bringing a dizzying array of flavors, options, and alcohol content levels to the tap room. Experts say this explosion of choices may have overwhelmed consumers and left them craving the simplicity of classics like Budweiser.
• Declining beer consumption, especially among younger adults, is reducing demand for hops, one of four essential ingredients in beer, Idaho Business Review reports. Idaho is among the top three hops producing US states, despite declining acreage. As demand for beer falls, brewers are prioritizing quality over quality to stay profitable, reducing demand for the crop. That has Idaho hops farmers looking to diversify with new crops and livestock for better cash flow. Dianne Gooding, a sixth-generation hops farmer and the vice chair of the Idaho Hops Growers Commission says both production and acreage devoted statewide to growing hops are slowly on the decline, adding that’s leading to shrinkage throughout the entire supply chain within the entire hop industry. Gooding noted that acreage devoted to hops in Yakima, Washington, which ranks first in hops production in the nation, is also declining, falling from 40,000 acres to just under 32,000.

• Michelob Ultra is now the top-selling beer in the US, overtaking Modelo Especial, CNBC reported in September. The light lager claimed the title of the best-selling beer in retail channels in the 52 weeks ended Sept. 14, parent company Anheuser-Busch announced, citing data from consumer research firm Circana. The beer was also the top seller in bars and restaurants, according to Nielsen IQ data for the 52 weeks ended July 12. Michelob Ultra’s ascent returns an Anheuser-Busch beer to the top spot. In 2023, the company’s Bud Light brand lost the title to Modelo amid a consumer backlash against the brand and growing cultural cachet for Modelo. Previously, Bud Light had held the title as the US’s top-selling beer for more than two decades. Modelo brewer Constellation Brands recently reported weaker demand from Hispanic consumers, a key segment of its customer base, per CNBC.
• Citing the volatile and challenging environment for breweries, Constellation Brands chief executive expressed cautious optimism that the beer business may be nearing the bottom of its dive even as consumers remain under pressure, Beer Business Daily reports. In remarks to analysts, Constellation Brands’ CEO Bill Newlands said the company, maker of the Modelo Especial and Corona brands, is watching closely for signs of stabilization after a summer of soft depletions and weaker takeaway in key Hispanic markets. Newlands cited unprecedented volatility in the beer market and noted that the company’s results are significantly worse in ZIP codes with high Hispanic populations than in the general population, suggesting that ICE activities and job losses in states like California may be impacting Hispanic consumer spending. Meanwhile, both Hispanic and non-Hispanic consumers are facing economic pressure amid rising prices for beer.