According to Gallup’s June 2025 polling, only 54 percent of Americans now report drinking alcohol, the lowest level recorded since the 1990s. This has translated into a serious drag on the beer industry.
The Brewers Association reports that through the first half of 2025, small-brewer production volume fell roughly five percent year-over-year, while dollar sales declined by about three percent. For the first time in modern craft beer history, closures are outpacing openings, with a net decline of around four percent in brewery and taproom numbers nationwide in 2024. California, once the unquestioned leader in brewery count, has been hit especially hard. By the end of last year, forty-seven breweries across the state had shut their doors, marking the first time in decades that California's brewery tally actually shrank.
San Diego, long considered one of the epicenters of craft beer, has not been immune. Local beer trackers noted at least eleven San Diego breweries ceased operations in 2024, the most ever in a single year. More closures and consolidations have followed in 2025, signaling that the era of unchecked expansion is over.
San Diego, long considered one of the epicenters of craft beer, has not been immune. Local beer trackers noted at least eleven San Diego breweries ceased operations in 2024, the most ever in a single year. More closures and consolidations have followed in 2025, signaling that the era of unchecked expansion is over.
The taproom model that once defined the scene is straining under flatlining demand, rising costs, and a glut of oversized warehouse spaces built during beer's boom years. While the county still boasts one of the densest brewery concentrations in the nation, the focus has shifted from rapid growth to survival, with only the most resilient and diversified operations expected to thrive. Those with strong food programs, packaged distribution, or broader beverage offerings have proven better equipped to weather the downturn.
As beer cools, coffee is heating up. National data shows that roughly two-thirds of Americans drink coffee on a daily basis, with espresso drinks, cold brew, and specialty beverages gaining ground each year. The U.S. coffee shop market continued to expand through 2024 and 2025, and San Diego has been an active part of that build-out.
As beer cools, coffee is heating up. National data shows that roughly two-thirds of Americans drink coffee on a daily basis, with espresso drinks, cold brew, and specialty beverages gaining ground each year. The U.S. coffee shop market continued to expand through 2024 and 2025, and San Diego has been an active part of that build-out.
Better Buzz Coffee Roasters, founded in Pacific Beach, has more than doubled its footprint from twelve to forty locations in the last few years and has announced plans to continue growing. Bird Rock Coffee Roasters, James Coffee Co., Dark Horse, and other well-known local names have expanded their presence across the city, while national brands like Dutch Bros Coffee continue to secure prime spots around the county.
The reasons for coffee's rise mirror the reasons for alcohol’s decline. Sober-curious movements, the spread of GLP-1 weight-loss drugs that blunt alcohol consumption, and the broader embrace of wellness culture have all reshaped consumer habits. Remote work has reinforced the coffee shop as a "third place," offering daytime community in ways that breweries once did during after-work hours. Coffee also comes with fewer regulatory hurdles, lower square-footage needs, and a broader addressable market that spans morning to evening across nearly every demographic.
This shift does not mean San Diego is losing its beer soul. Beer remains deeply embedded in the county’s cultural identity, but the days of a brewery on every block are fading fast. Instead, the scene is consolidating around fewer, stronger players while coffee steadily takes over as the city’s dominant social beverage.
The reasons for coffee's rise mirror the reasons for alcohol’s decline. Sober-curious movements, the spread of GLP-1 weight-loss drugs that blunt alcohol consumption, and the broader embrace of wellness culture have all reshaped consumer habits. Remote work has reinforced the coffee shop as a "third place," offering daytime community in ways that breweries once did during after-work hours. Coffee also comes with fewer regulatory hurdles, lower square-footage needs, and a broader addressable market that spans morning to evening across nearly every demographic.
This shift does not mean San Diego is losing its beer soul. Beer remains deeply embedded in the county’s cultural identity, but the days of a brewery on every block are fading fast. Instead, the scene is consolidating around fewer, stronger players while coffee steadily takes over as the city’s dominant social beverage.
In the battle for everyday rituals, the sunrise crowd is winning.
Originally published on August 24, 2025.
