Matthew Nix had driven past the brewery in Sauganash for years, but — not much of a weekday drinker — had never stopped in.
When he finally decided to meet friends at the taproom on a recent Saturday to play some cards, he found bartenders dancing on countertops, dogs wearing sweaters and the last of the beer draining from the tap. It was the farewell party for Alarmist Brewing.
“This is my first time here, first and obviously last,” said Nix, 36, a high school teacher living in the Edgewater neighborhood, about the closure.
In Illinois and across the country, breweries have been struggling as consumers seek healthier drinking habits or have a wider range of options, such as THC-infused drinks, as business costs continue to rise. Many have closed their doors, while others have redefined its meaning as a social space that offers beverage variety and events.
In Chicago alone, a handful of breweries have closed or consolidated in recent years, including Metropolitan Brewing, Revolution Brewing – Brewery and Taproom and Lo Rez Brewing and Taproom.
The number of U.S breweries closing outpaced those that opened for the second year in a row in 2025 for a net loss of 179 last year, according to preliminary 2025 data from Brewers Association, a trade group for small American brewers.
It stands in stark contrast from a decade ago — a golden age — for craft brewers when the number of breweries opening was about 10 times higher than those closing, according to Matt Gacioch, staff economist at Brewers Association.
One industry challenge is that Americans are now drinking less. A 2025 Gallup poll showed that only 54% of U.S. adults said they consume alcohol — the lowest percentage in 90 years.
Figures are even lower among young adults with only 50% reporting that they drink alcohol. These numbers fall in line with healthier drinking trends like “sober curious” and “Dry January,” which seek mindful and moderate drinking.
On top of drinking less, consumers are also seeking wider beverage options from nonalcoholic drinks to hard seltzers, which adds pressure for traditional craft breweries specializing in beer.
Sports and music arena United Center is expected to start selling THC-infused drinks Señorita and Rythm at its stands this month — apparently the largest U.S. arena to do so.
“Bringing Señorita and Rythm to the United Center reflects a simple truth: Consumers want nonalcoholic options, and leading venues are responding,” Ben Kovler, Rythm, Inc. chairman and interim CEO, said in a statement last month.
Other music venues that sell cannabis-derived drinks are the Salt Shed, Riviera, Ramova Theatre and Thalia Hall, taking up coveted beverage shelf space.
“There’s just so much more competition in terms of consumer attention and physical retail space,” Gacioch said. “There’s this whole world of other options.”
Rising business expenses and the cost of goods like aluminum have also contributed to the strain, particularly after the pandemic.
“You have the increased cost of just about everything,” said Andrew Heritage, chief economist at the Beer Institute, noting the increase in operating costs, rent and labor.
Some Chicago breweries were unable to recover, with Lo Rez Brewing in the Pilsen neighborhood closing its doors in 2023 in what cofounder Dave Dahl called a “pandemic casualty.” Another staple in the craft industry, Metropolitan Brewing, one of Chicago’s oldest, closed in 2023 after filing for Chapter 11 bankruptcy.
Most recently, award-winning Alarmist Brewing closed on Feb. 1 after years of struggling with falling business after the pandemic.
“The bottom line is we’re just not selling,” said Alarmist owner Gary Gulley. “It just never recovered since COVID.”
Illinois lost over 30 breweries in two years after 2020, falling to 218 total breweries, according to data from the Beer Institute. By 2024, the number of Illinois breweries rebounded to 251.
Some breweries have adapted to create third spaces, a place to mingle and play trivia with friends — and pups.
“I like a place where you can bring your dog, you can bring a book,” Nix said, likening these breweries to social spaces where you can play card games.
One brewery that has been bolstering events and activities is Maplewood Brewery and Distillery in the Logan Square neighborhood. The decade-old brewery holds events like its upcoming Pulaski Day Party to celebrate its Pulaski pilsner, trivia nights and beer festivals to cultivate brand loyalty.
“We have our core brand that we make, but we’re always coming out with something new and fun … that’s helped us out,” said Paul Megalis, co-owner and CFO of Maplewood Brewery.
Their expansive beverage options include ready-to-drink rum punch cocktails, in-house coffee liqueurs for espresso martini lovers and seasonal beer concoctions.
“We’ve essentially been a beverage company since Day 1, and so we’ve always had a diversified portfolio. I mean, we just hustle,” Megalis said.
They plan to open a second location in Glen Ellyn slated for this spring.
Despite the changing tides in the craft beer business, experts believe craft breweries are evolving not disappearing.
“Craft beer industry is nothing if not creative,” Gacioch said.
