In the craft brewing industry, kegging solutions have changed dramatically in recent years. While steel kegs once dominated the draught beer market, single-use plastic kegs have increased in popularity due to their convenience, especially in the craft brewing sector. With the increasing importance of the circular economy and the introduction of policies in Europe to move away from single-use plastic systems, this study aims to assess and compare the sustainability of conventional steel and single-use plastic kegs. The environmental and economic performance are assessed through life cycle assessment and life cycle costing approaches. The results suggest that steel kegs have better environmental performance and life cycle costs. However, these are limited to the local markets, and with larger distances, plastic kegs may become the better option due to their lower weight, suggesting that both kegs are useful in certain situations. This is especially important in countries that have long distances between breweries and their markets. The importance of extending the lifetime of the keg fleet is also highlighted to improve the environmental performance as the results are influenced by the assumption on the lifetime of the steel kegs. To improve the environmental performance of plastic kegs, efficient closed-loop recycling systems should be developed. Careful decision-making is needed to ensure that more sustainable packaging options are chosen for draught beer and that sustainability aspects be taken into account beyond convenience.