After a period of robust expansion in the craft beer sector, a slowdown is now evident. Beer sales are experiencing a decline overall, and the number of breweries in Canada is starting to decrease due to various factors such as cost pressures and evolving consumer preferences. Ben Leon, the co-founder and CEO of Dandy Brewing in Calgary, acknowledged the need for a market correction after witnessing the industry’s rapid growth.
While the hype surrounding craft beer in the 2010s has subsided, some businesses are still thriving by diversifying their offerings and redefining the brewery concept. In 2014, Leon launched his brewery in a small warehouse space in Calgary, capitalizing on the growing interest in craft beer among millennials. The regulatory changes in Alberta also supported the flourishing microbrewery scene. However, the landscape has shifted, with a decline in the number of new breweries opening.
The rise of craft breweries was a nationwide trend in the 2010s, with taprooms becoming popular destinations for consumers and government support driving economic growth in rural areas. The initial excitement and funding for craft beer ventures fueled the industry’s golden age, which extended into the early stages of the COVID-19 pandemic. Nevertheless, recent data indicates a stabilization and contraction in the number of breweries in Canada.
Beer Canada reported a leveling off and slight reduction in the number of breweries in 2024, with a consistent decline in beer sales over the past five years. This trend is not limited to craft brewers, as larger beer brands are also facing a slowdown in demand. Market analysis highlights that peak beer sales coincided with the peak of the craft beer trend, indicating a shift in consumer preferences away from traditional beer offerings.
Evil Corporation Brewing, a Calgary-based brewery, struggled to sustain its business amid changing consumer behaviors and funding challenges during the pandemic. The brewery closed its doors in 2025, reflecting the broader challenges faced by the industry. Factors such as reduced alcohol consumption among young people and new Canadians, coupled with affordability concerns, have impacted both craft and mainstream beer producers.
Despite these challenges, some breweries are adapting to the evolving market landscape by diversifying their offerings and enhancing the customer experience. Successful taprooms are now functioning as restaurants, offering a wider range of food options and hosting various events to attract patrons. The shift towards offering non-traditional beverages like seltzers and canned cocktails reflects a broader trend towards catering to changing consumer preferences.
In conclusion, while the craft beer industry is experiencing a period of adjustment, there are opportunities for breweries to innovate and cater to shifting consumer demands. By embracing new trends and enhancing their offerings, breweries can navigate the changing market dynamics and continue to thrive in the evolving landscape.
