PORTLAND Ore. (KPTV) - Oregon makes up the third-largest hops-growing region in the United States, but the decline of craft beer sales is causing a problem for the industry.

The gradual decline has taken place over the last several years, with a 2.1% decrease just in 2024.

For Von Ebert Brewing, business is booming despite the challenges that have faced many breweries in recent years.

"I think COVID changed people's habits in a lot of ways," said Sam Pecoraro, the Brewmaster at Von Ebert Brewing.

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"Several years ago it was a lot more on-premise, restaurant people going out to dinner and drinking in bars and things have really shifted to more grocery store-centric sales at this point," Pecoraro said. "We were originally a restaurant pub that happened to have a brewery, and now we're a brewery that has some tap rooms and pubs around Portland."

The slow decline in restaurant sales has caused a challenge, as breweries adapt to different marketing techniques.

The lack of demand means hops farmers have to be the first to cut corners, with hops acreage in the state decreasing by 12% in 2023 and 18% this year, according to the Oregon Beverage Alliance.

As things stand, the product surplus is significant.

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"We have about 185 million pounds, which is about a years' worth of hops in storage," said Michelle Palacios, the Administrator of the Oregon Hop Commission. "So this acreage adjustment is trying to stabilize the market so that we don't continue to add to that number."

The fix will take time, as farmers struggle to downsize and depend on other crops for their main sources of income. Palacios said it's been a nationwide issue, not just in our region.

"If you are choosing an adult beverage, consider beer, and consider a hoppy beer," she said. "When they choose Oregon beer, they're also choosing Oregon ag, and they're choosing Oregon hop farmers."

Palacios said the farm gate value of the Oregon hops industry is about $85 million, which means the value of the product minus the selling costs.