Hi guys. Today, I want to talk about the changes in the brewing industry, in particular the shift in the younger generations away from alcohol and into other things like non-alcoholic beer and marijuana beverages. It's important that we as an industry stay competetive, and staying competetive means being up to date with trends and being adaptable.
I was at a brewery in Denver last month—half their cooler was RTDs. Five years ago that would have been unthinkable. The competitive set has shifted, and it's worth being clear about what that means for craft.
Craft beer no longer competes only with other beer. It sits in a broader beverage space: ready-to-drink (RTD) cocktails, hard seltzers, spirits-based canned drinks, non-alcoholic options, and in legal markets, cannabis-infused beverages. Consumers have more choices than ever. Understanding that set is essential when you're planning product and channel strategy.
The RTD Expansion
Ready-to-drink cocktails—spirit-based, canned, often 5–7% ABV—have grown rapidly. Major spirits brands have entered the space, and craft distilleries are launching RTD lines. The appeal is convenience: a canned margarita or Old Fashioned without mixing. RTDs compete for the same occasions as beer—socializing, outdoor activities, casual drinking. They also compete for cooler space and tap handles. Retailers and bars have limited capacity; RTD growth has come partly at beer's expense.
Hard Seltzer: Past Peak but Persistent
Hard seltzer growth has slowed from its 2019–2021 surge, but the segment remains large. Many consumers who adopted seltzer during that period have retained it as an option. Beer brands that added seltzer lines have diversified; those that did not have watched volume shift to competitors or other categories. Seltzer is less of a growth story now than a stable part of the mix.
Cannabis and Adjacent Categories
In states where cannabis is legal, infused beverages are a growing category. They offer an alternative to alcohol for social occasions and relaxation. Consumer research suggests some overlap between craft beer drinkers and cannabis users; the same person may choose beer one night and a cannabis beverage another. Breweries in legal states face a choice: ignore the category, collaborate with cannabis brands, or in some cases, produce cannabis beverages under contract or partnership. Regulatory and operational complexity is high, but the category is unlikely to disappear.
What It Means for Craft Beer
Craft beer is not doomed. It remains a large, established category with loyal drinkers. The point is that it must compete harder for occasions, cooler space, and consumer attention. Differentiation—through quality, experience, brand, or occasion—matters more than ever. Breweries that treat craft beer as the default choice may lose share to those that actively defend and grow their position in a crowded beverage set.
---
Operational efficiency is one way to stay competitive when the set is this crowded. BrewLedger is built for that—see how it works when you're ready.