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Beer Production in the UK - Industry Market Research Report

United Kingdom beer production market: £8.6 billion industry by 2019

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2014-02-12 19:52:03 - Beer Production in the UK - Industry Market Research Report - a new market research report on

The United Kingdom beer production market has endured a tough time during the past five years. Beer consumption has fallen sharply due to rising beer duty, the introduction of a smoking ban in pubs and growing competition from other beverages, such as wine and cider. The onset of the recession, changing social trends and the ageing population have also taken their toll on the industry.

While sales of lager have slumped, craft beer and real ale have registered much stronger growth. Tired of massproduced, generic-tasting beer, drinkers have become more discerning and willing to try new styles. Small brewers have responded by introducing Indian pale ales, Belgian wheat beers and cask-pulled porters. This has seen the number of breweries in the



United Kingdom rise to its highest level in over 70 years.

Despite this, the industry is estimated to grow by only 1.0% in 2012-13 as the bleak consumer mood and wet weather weigh on sales of traditional lager. During the five years through 2013-14, industry revenue is expected to contract at a compound annual rate of 1.3%, to total £7.9 billion.

The industry will remain under the pump over the next five years. Sales will continue to suffer as the weak economy, competition from other alcoholic beverages and changing social trends constrain demand. Brewers will increasingly turn to premium products and innovation to create value, with fruit-flavoured lagers and craft beers expected to prove popular. Big brewers are also likely to turn to acquisitions to drive growth, with their sights set on nascent craft brewers. Craft beer will continue to enjoy robust growth as drinkers seek quality and variety, resulting in strong growth in the number of breweries. Industry revenue is forecast to grow at a compound annual rate of 1.8% over next five years, to reach £8.6 billion in 2018-19.

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