Texas Craft Beer Industry Faces Economic Challenges

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Brewery in Texas with craft beer being served

News Summary

The Texas craft beer industry has encountered significant challenges with declining sales reported by half of its largest breweries due to rising costs and changing consumer habits. While some breweries like Gambrinus’s Shiner brand saw a decrease in sales, others such as Pinthouse Pizza experienced growth. The San Antonio area reflects this precarious landscape, with several breweries closing amid operational pressures. Industry experts note a decrease in new openings, calling for community support to sustain local craft breweries during these tough economic times.

San Antonio, Texas – The Texas craft beer industry experienced setbacks in 2024, with half of the state’s ten largest breweries reporting a decline in sales. According to an analysis from Axios, the craft beer market is responding to economic pressures such as rising costs and a noticeable slowdown in drinking habits among younger consumers.

Among Texas’ craft breweries, the Gambrinus Company, known for its Shiner brand, dominated sales figures in 2024, moving nearly 454,000 barrels. However, this was a 3% decrease from the previous year. Other significant players, including Real Ale Brewing Co. and Altstadt Brewery, reported minimal growth, with Real Ale showing a flat growth rate of 0% and Altstadt a slight increase of 1%.

While some breweries struggle with declining sales, Austin-based Pinthouse Pizza reported a 3% rise in sales and is set to open its first brewpub in San Antonio near The Rim, a move that could enhance its presence in the competitive market. This added establishment points to a strategy by some businesses to expand in a challenging economic landscape.

The San Antonio craft beer scene has faced significant economic pressure as costs for operations rise. From March 2024 to February 2025, at least seven breweries in the San Antonio area either closed or downsized their operations, reflecting growing challenges within the local industry. One notable instance is the Alamo Beer Company, which filed for Chapter 11 bankruptcy in February 2025, although it aims to continue its operations. Additionally, Freetail Brewing Company halted its retail distribution in November 2024, marking another casualty in the industry’s current struggles.

Breweries within San Antonio are grappling with the changing dynamics of beer consumption and competitive offerings. Businesses like Breakaway Brewery are trying to adapt by focusing on smaller batch sizes to maintain a steady return on investment. The owner noted that while the brewery is still experiencing consistent growth, it is below the anticipated figures, indicating the pervasive challenges faced by the sector.

As the industry undergoes a noteworthy shift, industry experts have observed a decrease in new brewery openings, which further indicates a cooling craft beer market. This trend is concerning as long-established names are pressed to innovate and remain financially viable in a landscape dominated by changing consumer preferences and economic realities.

To support local breweries in this tough climate, community members and beer enthusiasts are encouraged to enjoy and purchase craft beer. Local patronage may help bolster these businesses as they navigate the current challenges of rising costs and shifting market dynamics. The survival of many small-scale brewers hinges on the support they can attract from their communities, making it crucial for consumers to consider the impact of their choices.

The outlook for Texas craft breweries remains uncertain as they confront new realities and strive to maintain their customer base amidst economic adversity and evolving market tastes. While some breweries are deploying initiatives to secure growth, the overall sentiment is that a concerted effort from consumers and brewers alike may be essential for the industry’s resilience in the coming years.

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STAFF HERE SAN ANTONIO WRITER
Author: STAFF HERE SAN ANTONIO WRITER

The SAN ANTONIO STAFF WRITER represents the experienced team at HERESanAntonio.com, your go-to source for actionable local news and information in San Antonio, Bexar County, and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as Fiesta San Antonio, San Antonio Stock Show & Rodeo, and Dia de los Muertos. Our coverage extends to key organizations like the Greater San Antonio Chamber of Commerce and United Way of San Antonio and Bexar County, plus leading businesses in retail, insurance, and energy that power the local economy such as H-E-B, USAA, and Valero Energy. As part of the broader HERE network, including HEREAustinTX.com, HERECollegeStation.com, HEREDallas.com, and HEREHouston.com, we provide comprehensive, credible insights into Texas's dynamic landscape.

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