Craft beer has always stood for passion, creativity, and variety. But recently, there’s been growing talk that the movement is losing steam. In Singapore, as in many other countries, brewery closures, rising costs, and changing drinking habits are reshaping the industry. The question is simple: are craft beer sales really declining here?
The global picture suggests we’re in a period of correction. In the United States, craft beer production fell by about 4% in 2024 compared to the year before. For the first time since 2005, more American breweries shut down than opened. Long-standing names like 21st Amendment Brewery in California are closing after years of shrinking sales and rising expenses. The UK tells a similar story, with around 100 breweries closing their doors in 2024 alone. Australia’s Curly Lewis Brewing in Bondi went under owing millions, citing high rent and slowing sales. Even Texas, once one of the hottest craft beer markets, saw 29 brewery closures in a single year as costs outpaced revenue.
Singapore isn’t immune to these pressures. In June 2024, Archipelago Brewery, one of the most established names in the local scene, shut down operations. Trouble Brewing has also gone into liquidation. These aren’t small, unknown outfits — their closures underline just how difficult it has become to keep craft beer sustainable here. Despite a total beer market worth about SGD 1.5 billion annually, craft beer still accounts for only 2–3% of total sales, a niche segment compared to the mass lagers that dominate taps and shelves.
Costs are also rising faster than many small brewers can absorb. Nominal wages in Singapore grew by 5.6% in 2024, and manpower costs remain the top concern for two-thirds of businesses surveyed by the Singapore Business Federation. Rents add another layer of pressure: in the first nine months of 2024 alone, 2,465 F&B outlets closed, nearly 20% more than the year before. By 2025, the pace of closures has quickened to more than 300 a month. Craft breweries, with their labour-intensive operations and taproom-heavy business models, feel this squeeze more than most.
While the headlines highlight closures and slowdowns, the overall Singapore beer market is still projected to grow in value over the next five years. For us, that’s reason enough to stay the course. We believe in keeping craft beer approachable and affordable without sacrificing quality. But help la, we also need all the support that we can so that we can stay afloat. Despite what our dear ministers are saying, manpower and rental remains the biggest cost factor, and while costs are creeping up, our prices cannot really reflect the change else we risk losing customers.
The reality is clear: craft beer is under pressure both globally and locally, but decline doesn’t have to mean defeat. We remain committed to what drew people to craft in the first place — well-made beer that you can enjoy regularly, not just on special occasions. Passion got us here, and passion will keep us going.
Cheers to the next chapter.