Despite the craft beer industry facing challenges nationwide, Billings, Montana, is bucking the trend with a thriving local beer market. While breweries across the U.S. have experienced declines, the craft beer scene in Montana remains healthy, especially in Billings.
Shea Dawson, co-owner of Thirsty Street Brewing Company, is optimistic about the state of business in the area. “Breweries are still doing pretty well here,” Dawson noted, highlighting how his brewery has flourished by hosting local musicians, organizing fundraisers for nonprofits, and fostering a sense of community.
“Our customer base knows each other well,” Dawson said. “They expect to see familiar faces every Tuesday and Wednesday, or whenever it is.”
Though the number of breweries has increased, craft beer sales have dropped for two consecutive years across the country, according to a Brewers Association study. Dawson attributes this decline to changing consumer preferences and the lingering effects of the COVID-19 pandemic.
“Gen Z—there’s a large percentage of them that don’t drink,” Dawson explained, pointing to a shift in younger generations’ drinking habits.
Montana’s craft beer industry, however, continues to stand out. For the past decade, the state has consistently ranked among the top three in breweries per capita, according to the Montana Brewers Association. Although the pace of growth has slowed, the market remains stable.
Matt Leow, executive director of the Montana Brewers Association, pointed to several factors contributing to the national downturn, including a post-COVID shift in drinking habits and an aluminum can shortage. Consumers are also diversifying their beverage choices, gravitating toward liquor, hard seltzers, ready-to-drink cocktails, and non-alcoholic options.
“Ninety percent of craft beer drinkers say they drink at least one other category of beverage,” Leow said.
Travis Peterson, owner of Meadowlark Brewing, has also seen shifts in the market. Peterson, who operates breweries in Billings and Sidney, Montana, noted that the number of breweries nationwide has decreased—from about 2,400 a decade ago to roughly 1,000 today—reflecting broader market forces.
“We’re seeing a natural shrinking of the number of breweries that are out there,” Peterson said.
Peterson started Meadowlark in Sidney, but declining oil production in the Bakken region led to fewer customers. To adapt, he expanded the business to Billings, where Meadowlark now brews beer using locally sourced ingredients.
“Montanans, in particular, are really proud to support local businesses,” Peterson said, emphasizing the strong connection between local products and community pride.
Like Thirsty Street, Meadowlark Brewing has diversified its offerings, adding a restaurant, pickleball courts, and hosting community events. “People see us as a great place to hang out and come with families,” Peterson added.
The future of craft beer in Billings looks bright, with two new breweries slated to open in the area. Both Dawson and Peterson view this as a positive sign for the industry.
“It’s good for our community of craft brewers when there’s more of us around,” Peterson said.
Dawson echoed this sentiment, expressing confidence in the enduring appeal of beer. “Beer has been a part of our society for hundreds and hundreds of years,” he said. “So I don’t think that’s going to go anywhere.”
