The past year hasn’t been kind to either the craft beer or cannabis spaces, as a downturn in investor enthusiasm for both sectors and other factors have deterred growth. Despite some hope, headwinds remain.
The past year hasn’t been kind to either the craft beer or cannabis spaces, as a downturn in investor enthusiasm for both sectors and other factors have deterred growth. Despite some hope, headwinds remain.
Changing demographics
Much of Generation Z is old enough to legally buy craft beer or cannabis, but that doesn’t mean its members are a reliable customer base. Health conscious, financially stressed, and coming of age during the COVID era, Gen Z is generally drinking less alcohol, spending less at dispensaries, and not going out to bars nearly as much, compared to previous generations.
With younger people hesitant to venture out, this may make the upcoming launch of cannabis consumption lounges even more challenging.
Consolidation and closures
Both industries have seen businesses close their doors in 2025, while some of the biggest craft beer brands have merged. However, closures may allow more successful businesses to gain market share in 2026, and it could be argued mergers will help companies like Hendler Family Beer Co. (new parent company of Jack’s Abby, Night Shift, and Wormtown) and Barrel One Collective (the new parent company of Harpoon, Greater Good Imperial Brewing, Wachusett) compete with larger companies.
Investors not feeling the buzz
Federal inaction toward reforming cannabis laws has tanked already-low investor enthusiasm. However, in December, President Donald Trump announced he is ready to make efforts to lower cannabis from a Schedule I drug to Schedule III. This would probably lead to more investment interest in the industry, although the exact impact of such a move on Massachusetts’ state-legal cannabis space is cloudy.
Investors have largely been turned off from the craft beer industry, with business owners looking to exit the industry finding few takers.
Eric Casey is the managing editor at Worcester Business Journal, who primarily covers the manufacturing and real estate industries.
