The craft beer industry has faced a tragic couple of years with 100s of beer businesses shuttering permanently in 2025, as brewery closures outpaced openings with 434 shutting down and 268 opening by mid-December, Brewbound reported on social media.
The main reasons for the economic distress have been a 1% decline in overall U.S. beer production and imports and a 4% decline in craft brewer volume in 2024. Conditions did not improve in 2025 as volume fell about 5% last year, according to a Brewers Association report.
Domestic beer shipments also declined 5.9% in 2025, losing about 8.68 million barrels of beer, according to the Beer Institute, as Brewbound reported. Shipments in 2025 reached 139 million barrels, a decline from 147.7 million barrels in 2024.
Consumer demand and consumption fall
Consumer demand and alcohol consumption rates of younger generations also declined, the Brewers Association reported, and the cost of ingredients and materials rose with higher inflation.
“Raw material costs have emerged as a significant constraint in the North American craft beer market, with substantial increases in the prices of essential ingredients, such as malted barley and hops, alongside packaging materials like aluminum cans,” according to a 2026 North American Craft Beer Market Report by Mordor Intelligence.
“The impact of these cost increases has been particularly severe on production economics, forcing breweries to revise their pricing strategies and operational models,” the report said.
Brewer’s Art closed, liquidated assets
The craft beer downturn led to the owner of longtime Baltimore craft brewery, The Brewer’s Art, filing for Chapter 7 bankruptcy on Feb. 13 to liquidate its assets after suddenly shutting down its business, according to Public Access to Court Electronic Records as reported by Bankruptcy Observer.
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Magic City Brewing Co. files Chapter 7
And now, heavy-metal-themed beer brand Magic City Brewing Co. LLC has filed for Chapter 7 bankruptcy to liquidate its business after closing its brewery and two taprooms.
The Akron, Ohio-based craft brewer closed its taproom at 1662 Merriman Road before Feb. 3, when the beer company said it would also close its flagship brewery and taproom at 2727 Manchester Road on Feb. 14, the Akron Beacon Journal reported.
Magic City Brewing followed up its business closings with a Chapter 7 petition filing in the U.S. Bankruptcy Court for the Northern District of Ohio in Akron on Feb. 21, according to Inforuptcy.
More bankruptcies:
- 73-year-old family diner franchisee files Chapter 11 bankruptcy
- More troubled regional airlines file for Chapter 11 bankruptcy
- Major department store brand liquidates in Chapter 11 bankruptcy
The debtor listed about $138,000 in liabilities in its Chapter 7 petition, according to the Cleveland Business Journal.
“Well, folks, it’s been an amazing ride, but all good things must come to an end. MCBC’s last day of business will be Feb. 14, Valentine’s Day,” Magic City Brewing Co. wrote in a Feb. 3 Facebook post.
“We will be open as usual until then. Please swing through, have a beer or 2,” Magic City wrote. “Also — as of today, Rabbit Hole is closed as well.”
Taproom runs out of beer
Magic City, however, had such a massive crowd of beer drinkers on Feb. 13 that it ran out of beer and did not open for business on Feb. 14, according to its Facebook post.
“Well folks, y’all drank us dry! We are officially out of beer, making last night, our last night open. Apologies to those (who) were planning on swinging through today, we simply don’t have the product,” Magic City wrote in a Feb. 14 post.
“Thank you all for an incredible eight and a half years. This has been an incredible journey, and it couldn’t have happened without you,” the company’s post said.
The final beer on tap was Magic City Brewing Company’s Stand Shadowless Barleywine American, according to its website.
Magic City Brewing Beer list:
- Stand Shadowless
- Grandma Kitty
- Dorothy Mantooth
- The Jotunn
- Paddy, Not Patty
- Cookie Monster Gloop
- Christmas and Cream Gloop
- Baklava Gloop
- Non-Heinous Genghis
- Florida Stanley
- Morning Mayhem
- Aunt Marge’s
- Xmas Slay
- Death Sings Me to Sleep
- White Pony Bad Boy
- Doctor Spaceman
- Full Nelson
- Dreki
- Giles
- Space Snakes
- OJOG
Source: Magic City Brewing Co.
Related: 30-year-old beer brand files Chapter 7 bankruptcy to liquidate
