Breweries NAICS 312120

Jul 13, 2025 - Craft Brewers Suffering Under Tariffs

• US craft brewers are suffering under tariffs imposed by the Trump administration, the CATO Institute reported in July. With canned beer accounting for about 75% of packaged craft beer by volume, craft brewers are especially sensitive to tariffs on aluminum and steel imports imposed on all countries by the Trump administration, which doubled to 50% in June. Most craft breweries are small and less able to absorb rising costs than larger breweries. Notably, the producer price index for aluminum can manufacturing rose 1.5% from March to May. “Costs for kegs, brewhouses, tanks, and even building infrastructure are climbing fast,” according to the Brewers Association. Moreover, switching to bottles is not an easy fix and bottles are hard to procure as big brewers switch to them crowding out smaller buyers. Ingredient prices, including specialty hops, are also rising due to tariffs.
• A new study has found polyfluoroalkyl substances in beer brewed in the US, the Brewers Association reports. The study – Hold My Beer: The Linkage between Municipal Water and Brewing Location on PFAS in Popular Beverages – focused on areas of the country where PFAS compounds are found in high concentrations in drinking water. Due to their “forever” nature, these chemicals can easily be transferred into beer if they are present in a brewery’s water source. According to the study, “approximately 18% of breweries operating in the US are located within zip codes served by public water supplies with detectable PFAS in drinking water.” Notably, perfluorosulfonic acids, particularly PFOS, were frequently detected, with PFOA or PFOS above the EPA’s Maximum Contaminant Limits in some beers. Some of the highest PFAS levels and most chemically diverse samples came from beers brewed in North Carolina.

• Beer doesn’t enjoy the same price elasticity as other alcoholic beverages like vintage wines or top-shelf whiskies, with beer drinkers balking at rising prices, The Wall Street Journal reports. Breweries must keep a lid on costs and prices and innovate to justify price hikes. “Beer is [still] considered a commodity,” said Justin Catalana, CEO of San Francisco’s Fort Point Beer Co., adding “People talk about a six-pack’s cost the same way they do a carton of eggs.” That wasn’t always the case. As craft breweries began to transform the industry, consumers gladly paid more for hazy IPAs and other novel brews. But as they proliferated the market became crowded and craft beers became grocery store staples, according to WSJ. Now, amid slumping sales, craft breweries compete for sales with increasingly popular nonalcoholic beverages, cannabis, and canned cocktails. Some breweries are expanding beyond beer to boost revenue.
• Producer prices for breweries inched up 0.5% in May compared to a year ago, after rising 4.9% in the previous May-versus-May annual comparison, according to the latest US Bureau of Labor Statistics data. Stiff competition in the crowded market for beer, competition from other alcoholic beverages, and declining beer consumption, which is at its lowest in over a generation, are keeping a lid on prices even as brewers’ costs rise. Nevertheless, breweries continue to add jobs. Employment by the industry grew 6.7% year over year in April, BLS data shows.