After a period of substantial growth in the craft beer sector, the momentum is slowing down. Beer sales are experiencing a decline, and the number of breweries in Canada is starting to decrease. This shift is influenced by various factors such as cost pressures and evolving consumer preferences and social behaviors.
Ben Leon, the co-founder and CEO of Dandy Brewing in Calgary, acknowledged the need for a correction in the industry, stating that the era of exponential growth couldn’t last forever. Despite the waning hype surrounding craft beer in the 2010s, some businesses are thriving by diversifying their offerings and reimagining the concept of a brewery.
In 2014, Leon launched his brewery in a small warehouse space in Calgary’s northeast, tapping into the rising demand for craft beer among millennials and benefiting from regulatory changes that supported microbreweries in Alberta. This trend was mirrored nationwide, with a surge in craft brewery openings during the 2010s.
However, the boom in the craft beer scene has plateaued in recent years, with a decrease in the number of breweries observed. Beer Canada and industry analysts note a downward trend in beer sales, affecting both craft and mainstream brewers. The industry has seen closures like that of Evil Corporation Brewing in Calgary, which faced challenges securing funding during the pandemic and eventually ceased operations in 2025.
Factors such as changing consumer habits, including reduced alcohol consumption among young people and new Canadians, and concerns over affordability are impacting the industry. Additionally, the oversaturation of the market and high taxes on beer contribute to the challenges faced by breweries.
Despite these obstacles, some breweries are adapting to the evolving landscape by offering a wider range of products, enhancing their food offerings, hosting events, and introducing non-alcoholic options. By catering to shifting consumer preferences and diversifying their business models, breweries like Dandy Brewing are finding ways to navigate the changing market dynamics.
In conclusion, while the craft beer industry is experiencing a period of adjustment and consolidation, there are opportunities for breweries to innovate and cater to the evolving needs of consumers. The industry may be shifting towards a more nuanced and diverse landscape, with a focus on quality, variety, and customer experience.