Adam Blumenthal, CEO, Lion Brand Yarn

Reflection: 2025 was a year of extreme changes in the category, which cascaded through the business and affected nearly every aspect of the craft industry landscape – to varying degrees.  Adapting to change became critical in this new environment of fluctuating tariffs and fewer retail outlets.

Prediction: As economic uncertainty persists, consumers gravitate toward brands that feel familiar and comforting.  Retailers will prioritize partners who can highlight trust as a differentiator, pairing authentic brand stories with trend-right assortments to capture both seasoned crafters and younger makers seeking dependable products.

Gina Pantastico, Co-founder and Director of Operations, Cloud9 Fabrics

Reflection: Relationships are a cornerstone of the growth of this industry.  Whether it’s your relationship with your reps, suppliers, or customers, they are all so incredibly important.  Relationships create a sense of community and can be an incredible resource for new ideas, collaborations, and productivity. This leads to higher levels of motivation and engagement, which in turn leads to a successful business.

Prediction: While quilting will remain a huge part of the sewing community, I feel that an interest in garment and bag sewing is on the rise. The closing of Joann has increased the demand for specialty substrates, and sewists are interested in using fabrics in a multitude of creative projects. While quilting cotton still dominates the shelves, there is already an uptick in demand for apparel and home dec substrates that is being driven by the consumer.  I believe that trend is going to continue for 2026.

Heather Lou, Founder, Closet Core Patterns, Co-founder, Core Fabrics

Reflection: Like most ecommerce businesses, we were roiled by the chaotic roll-out of the Trump tariff policies and the end of de minimis shipping; this dominated our year and tanked our US sales. Trying to figure out how to continue shipping into the USA from Canada was probably the greatest challenge we’ve faced as a business, and it continues to be an ongoing nightmare with ever-changing policies from US customs and shipping agencies like FedEx and UPS, none of whom were remotely prepared for these changes. Happy to look towards better days in 2026!

Prediction: My biggest prediction for the coming year is a renewed focus on old-fashioned community building across the craft industry. With social media eroding our relationships and a lack of faith in bigger institutions, I think we’re all craving more meaningful and substantial connection – I sense a sea change towards local, offline gatherings. For us, that means being more present in our sewing community IRL, whether through in-person events, classes, and shopping experiences.

Nick Bertram, President and COO, Michaels

Reflection: 2025 proved to be a pivotal year for Michaels marked by a significant shift in who is creating and how often. We saw an increase in engagement from younger customers, who are discovering the proven mental health benefits as well as the social aspects of making things by hand. This infusion of new, enthusiastic creators signals a healthy and expanding future for the craft industry as a whole.

Prediction: Looking ahead to 2026, we expect to see trends like personalization and self-expressionto be more amplified, particularly in terms of jewelry making and appliqué. Creators are looking to move beyond mass-market accessories and are investing in unique, handmade pieces, driving demand for innovative beads and charms, high-quality patches, and easy-to-follow DIY kits. We expect this trend to expand and elevate the jewelry making and appliqué categories in the year ahead.

Lucy McDermott, Owner, Stash Charlotte

Reflection: This year was challenging, to say the least. After what felt like a long-awaited return to stability following the COVID period, business conditions had largely normalized and demand was strong  – then the import tariffs hit. Once again, owners of small, independent yarn shops banded together to educate, advise, and support each other through months of confusing and aggravating tariff turmoil.  While the collaboration reinforced the strength of our community, it was an experience we all probably would have preferred to avoid.

Prediction: My outlook for 2026 is cautiously measured. Shops like mine do not sell essentials for survival (although that can be debated). All of our customers are facing skyrocketing health care expenses and higher food prices, which cuts into their discretionary spending budget. Meanwhile, prices for the goods we carry are still increasing, putting pressure on both sales and operating margins.  It will be another challenging year, but when isn’t it a challenging year for small business owners?   

Grace Dobush, Corporate News Reporter, Craft Industry Alliance

Reflection: This past year was way too eventful in the craft world. Joann’s second bankruptcy and liquidation has left a huge gap in the fabric retail market, and has led to financial distress for many of its suppliers, as seen in Design Group Americas’ bankruptcy and liquidation. This retail earthquake combined with all of the tariff wars has made 2025 rough for suppliers, wholesalers and retailers of all sizes. Economic uncertainty has crafters shopping from their own stashes, and Etsy sale volume has stagnated. The tariffs were meant to bolster domestic production of goods, but instead we’ve seen numerous yarn and ribbon factory closings in the U.S. as well as in Canada. 

Prediction: I fear more craft industry insolvencies could be coming, as the Joann and DGA bankruptcies are still in settlement with creditors, and it’s unclear how many of the claims will be paid out. The loss of Joann left a huge gap in the retail fabric market, and I hope that shoppers find what they need with independent retailers, but tariff issues have also made it difficult to secure fabric stock, especially in smaller amounts. There will probably be more contraction in the coming year, but craft companies that can hold on through 2026 will be able to last for decades to come.

Amy Singer, Founder and Editor, Knitty

Reflection: 2025 reminded me, in the worst way, of 2001, 2008, and 2020 – stressful years where the outside world feels threatening and the only safe place is at home or with friends and our handwork. Elegant, well-designed sweaters and accessories were being cast on everywhere, and as always at Knitty, unique and innovative techniques continued to inspire! Hunker down and make beautiful things might be the motto of 2025. 

Prediction: Online and in person, I feel like we’re yearning for simpler things after several decades of chasing the newest tech:  iPods over streaming music, Bluesky over billionaire-owned social media. The tone-deaf Pantone color of the year for 2026 (aka white) is going to be drowned out by COLOR everywhere, and Knitty will lead the way. We’ll continue to ban AI from our pages, and celebrate the work of real people and their real brains and hands. 

Darrin Stern, President and Managing Director, Koelnmesse, Inc.

Reflection: 2025 was a “resilient but picky” year for the soft-crafts world: demand didn’t disappear, but consumers got more selective. Quilters alone still represented a multi-billion-dollar market (about $4.5B annualized), even as growth visibly slowed.  At the same time, the retail landscape was punched in the face by channel disruption, most notably by JOANN’s decision to close all stores after its 2025 bankruptcy, which pushed more purchases to independents, e-commerce, and events.  

Prediction: In 2026, the brands and events that win will be those that replace convenience with connection: tighter community-building, education-driven commerce, and smarter product stories, especially as younger consumers continue to lean into “analog” hobbies as a screen break.  And cosplay/craft crossover will keep pulling the industry forward. Fan conventions draw huge crowds (e.g., New York Comic Con 2025: 250,000+ attendees), which translates into real demand for sewing, foam, patterning, embellishment, and maker skills. 

Claudia Martinez, Owner, Snuggly Monkey

Reflection: 2025 will live in my memory as the year of the tariffs. Navigating the ever changing and nebulous tariff policies along with the elimination of the de minimus limit consumed my life as a small business owner this year. There were many challenges associated with rising cost of goods, lack of availability of once reliable product lines and the general economic uncertainty.  While small businesses faced numerous challenges this year, I also noticed a surging interest and commitment to the shop small mentality among consumers. 

Prediction: In 2026, I think that the role small craft businesses can play in community building and establishing connections among makers will be more important than ever. We will continue to search for ways to fill the massive hole in the industry left by the closing of Joanns, especially in reaching out to new crafters, stitchers and sewists and making them feel welcomed into the crafting community rather than discouraged and dismissed. I hope that the momentum that has been building in 2025 among consumers who are more thoughtful about their purchasing power continues to grow.  It will be important for small businesses to stress the roles that small businesses play in local communities and in the economy as a whole.  

Toni Lipsey, Designer, Instructor, Author, TL Yarn Crafts

Reflection: Customers craved connection in 2025. There’s been a lot more conversation about how divided our attention is, and the same goes for who’s been vying for our dollars. Customers have become more savvy about which designers and companies are “phoning in” their launches and new releases. With everyone having a tighter eye on their funds, they got pickier about who they gave their money to. Even if they were a die-hard fan of a certain brands, they jumped ship when standards started to slip. In my experience, customers gave their money to products and initiatives built around solid manufacturing, personal connection, and community inclusion over the year, and even moreso around the holidays. 

Prediction: Values will outperform hype. It’s getting harder and harder to determine what a brand stands for, so the brands that operate from a place of consistent and clear values will continue to rise to the top. Don’t be afraid to be outspoken about what you believe in. Publicly contribute to causes that matter to you, tie it to your mission, and engage your audience around those same values. 

Melanie Falick, Writer, Editor, Creative Consultant

Reflection: Over the past year, I’ve watched a meaningful shift take hold—both within the maker community and in the wider culture. More people are recognizing handwork as an essential component of a healthy, balanced life—a true pathway to wellness. For those of us who have long understood the restorative power of making, this comes as no surprise. What is new, and deeply encouraging, is that the scientific community is now affirming what makers have always known. Advances in brain imaging and related technologies are finally giving evidence to the profound mental, emotional, and physiological benefits of working with our hands.

Prediction: As we move into the coming year, I expect this awareness to deepen. There will be growing appreciation not only for the beauty or utility of finished pieces, but for the process of making itself—the focus it requires, the calm it fosters, and the sense of agency it restores. At the same time, social media and increasingly sophisticated algorithms will continue to compete for our attention, fragmenting our focus and accelerating the pace of daily life. In response, more makers will seek out thoughtful curators, teachers, and communities who can help them slow down, edit the noise, and reconnect with what truly matters.

Abbie Small, General Manager, Simplicity

Reflection: 2025 was a pivotal time in the sewing industry as we faced shifts in retail partners, unexpected tariffs and deep changes to how we pursue our passion. It started out as a simple hem and ended with heavy alterations.

Prediction: Our sewing community is resilient and will navigate the recent shifts in the industry.  We are excited to enter 2026 as a 200-year old start-up, delivering new designs and projects in both paper and digital patterns, and keeping the home sewist at the heart of everything we do.

Arvin Pairavi, President, Shannon Fabrics

Reflection: 2025 was a year of recalibration and renewed momentum for the fabric industry, as supply chains stabilized and businesses refocused on quality, innovation, and reliability. Manufacturers, retailers, and makers leaned into smarter sourcing, education-driven selling, and stronger partnerships, reinforcing the importance of trust and community in a relationship-driven industry. As the year comes to a close, the fabric industry stands more resilient and connected, well-positioned for sustainable growth and continued creativity in the years ahead.

Prediction: 2026 is poised to be a growth year for the fabric industry, driven by continued normalization of supply chains, more strategic inventory planning, and increased demand for differentiated, high-quality textiles. Brands that invest in product innovation, education, and meaningful partnerships with retailers and makers will pull ahead as consumers prioritize value, trust, and experience over price alone. As technology, social commerce, and community-driven engagement continue to evolve, the industry will see stronger, more sustainable growth rooted in creativity, connection, and purpose.