Craft beer's golden age in Canada is over, as sales dwindle and breweries fold. After years of seemingly endless growth, the industry is facing a downturn, with a mix of cost pressures and changing consumer habits to blame. Ben Leon, co-founder and CEO of Dandy Brewing in Calgary, says the correction was inevitable. He adds, 'We weren't going to ride this rocket ship forever.'
The 2010s hype around craft beer is fading, but some businesses are finding success by offering diverse drinks and expanding their view of what a brewery can be. The golden age of craft beer, fueled by millennial demand and government support, kept the industry humming until the early 2020s. Between 2017 and 2022, the number of breweries in Canada soared from 676 to 1165. However, the party couldn't last.
According to beer writer and analyst Jason Foster, the number of breweries in Canada has stabilized and started to decline, with a 2.9% drop in 2025 and a 3.4% decline the previous year. Foster attributes this to the industry's dramatic growth in the previous decade. He warns, 'You have to be on top of your game now... bad beer will kill you — a good beer won't save you.'
Beer Canada, an industry group, confirms the number of breweries has levelled off and slightly shrunk in 2024. Beer sales have been declining by about 2% annually for five years. This slowdown affects both craft brewers and larger brands. Statistics Canada data reveals that peak beer sales coincided with the craft beer craze's early days. Retail beer sales peaked around 2010, and since then, sales at liquor stores and other retailers, including brewery taprooms, have gradually declined.
Evil Corporation Brewing, a Calgary-based brewery, struggled to raise funding during the pandemic and eventually closed its doors in 2025. The brewery's former owner, Quan Ly, attributed the closure to the industry's challenges. He said, 'Everything bad that could happen to us, happened to us, essentially.'
Changing consumer habits, such as reduced drinking among young people and new Canadians, and affordability concerns, are putting pressure on the industry. A November survey by Angus Reid for Restaurants Canada found that 56% of Canadians dine out less, and 30% have cut back on alcohol purchases to save money. Beer Canada president Richard Alexander highlights overtaxation as an additional cost pressure for consumers already struggling with high living costs.
Despite the challenges, some breweries are adapting to succeed. Taprooms are now offering more food options and hosting events, moving beyond traditional IPAs to include seltzers, canned cocktails, and non-alcoholic choices. Dandy Brewing in Calgary, for instance, has focused on pizza and introduced a hard iced tea, attracting customers even as sales have dipped in recent years.
Leon believes the craft beer party is not over but has become more relaxed. He says, 'It's a little less balloons and party streamers and loud music at the party, and a little more sitting and talking.' The industry is adjusting to a new normal, with some breweries closing and others finding innovative ways to thrive.
