A new report published today has shown that whilst demand for independent beer remains strong, UK brewers face “heavy headwinds” from increased taxation, market access restrictions and reduced alcohol consumption facing breweries which threaten to blow the industry off course. This means that whilst average production climbed 10% last year, nearly half (46%) of independent brewers say their main priority is survival and almost a third (29%) expect turnover to fall.
This is according to a new report published today by the Society of Independent Brewers and Associates (SIBA) which brings together industry insight and consumer polling to provide an authoritative report on the state of independent brewing in 2025.
The SIBA Independent Beer Report 2025 shows that the average production of independent breweries last year climbed 10%, compared to an overall beer sector where national beer sales are down 1% since last year and now stand 6.6% below pre-pandemic levels. For independent breweries the increasing popularity of porters, stouts, craft lagers and no and low alcohol beers helped drive growth.
But it’s not all good news for the indie beer sector, as at the same time the number of independent breweries fell by 5.5%, with around 100 closing their doors and others merging to survive, with pubs and hospitality venues continuing to close.
“Time and time again, the research shows that there is high demand for the innovative, interesting and tasty beers that indie brewers are best at making,” commented Andy Slee, SIBA CEO. “Our members are great at adapting to changing tastes and have increased the number of stouts, lagers and nolo beers on offer. Which has helped drive a double-digit growth in production amongst indie brewers.”
“However, the current Global trade anxiety and tax changes in the UK are making it a challenging market and indie brewers can’t get their foot in the door to get their beers to the customer. Our members currently have around 6% of the market and where they are allowed to compete against Global breweries they could have 30% market share. This lack of access means that beer drinkers are missing out, indie breweries are facing heavy headwinds to growth meaning fewer jobs are being created.” Andy added.
YouGov polling, commissioned exclusively by SIBA, shows that less than half (47%) of all consumers ever drinking beer and only nearly a quarter (28%) of 18-24 years. More and more people are choosing not to drink alcohol at all, with 21% of all consumers increasing to 36% for 18-24 year olds.
The volatile trading environment had a cooling impact on the sector with 80% of breweries surveyed making no major investments in their business last year. While breweries still intend to create more than 500 jobs this year, this is a significant drop from last years nearly 800 jobs.
And access to market continues to be the biggest issue for independent brewers. The YouGov/SIBA figures show that beer drinkers are demanding a local product, with more than three quarters (77%) saying it is important for pubs to offer a range of beers from local breweries. And 56% of beer drinkers say they would be more likely to choose a beer if it was locally produced. Yet independent brewers report being unable to sell to on average 60% of the pubs local to their brewery. Eight in ten brewers surveyed said that it was the lack of access to beer lines as the top barrier to sales and growth.
With average production amongst independent brewers increasing, it is stouts, lagers and no/low alcohol that is leading the way, with 24% on average now going into keg beers. Eighty percent of brewers are now producing a stout or a porter with CGA data showing a 121% increase in ‘craft stout’ value in the ontrade last year. Lager has jumped to second place amongst brewers this year, with 60% now producing them, suggesting that independent breweries are now making some inroads into a market usually dominated by Global lager brands.
With 14% of drinkers now opting for no/low products, independent brewers are increasing adding them to their range, with 15% now making a non-alcoholic beer compared to 8% last year.
Report highlights
- Demand for independent beer remains strong with average production in 2024 up 10% on 2023.
- 80% of independent brewers are producing a stout or porter and 60% are producing a lager with 24% now going on average into keg products, up from 18% last year.
- 15% of brewers are not producing a non-alcoholic beer, which is an increase from 8%. Twenty-eight percent now produce a gluten free beer in response to around 10% of the UK population following a gluten free diet.
- There was a 5.5% fall in the number of breweries last year, with around 100 closing.
- 29% expect turnover to decrease for the financial year to April 2025 with 68% of brewers having a turnover below £250,000 and 75% under a million pounds.
- 80% of brewers made no major investment in their business in 2024, with 28% making minor investments in replacing and upgrading equipment.
- There has been a fall in exports from 17% to 12% of breweries with only 1% of beer production being sold abroad.
- 46% of brewers said their main priority is survival compared to 43% in 2024.
- 96% said that their relationship with their community is important, with 80% saying it is very or extremely important.
- 30% of employees are female and 8% of brewers. Twenty-five percent of the workforce work in a taproom or shop on the brewery site.
- 557 jobs are expected to be created in 2025, a fall from 768 in the last survey.
- 44% of breweries acted to cut their carbon footprint.
- On average, small breweries cannot sell to 60% of their local pub market, with 79% saying the main barrier is the lack of access to beer lines.
- 47% of consumers say they drink beer, 62% of male consumers and only 28% of 18-24 year olds.
- The number who never drink alcohol has increased to 21% this year with 36% of 18-24 year olds not drinking alcohol.
- 77% of beer drinkers think it’s important for pubs to offer a good range of beers from small independent breweries. This increases to 81% of female drinkers.
- 56% of beer drinkers are more likely to buy a beer if its locally produced, rising to 61% among 18-24 year olds.