Figures released today show the UK has 100 fewer breweries in total as of January 2025 compared to January 2024 – with each quarter of 2024 showing a negative net closure rate – despite reports of strong demand for beer from independent breweries.
The figures, released by the SIBA UK Brewery Tracker and which consider all openings and closures to give the net number of breweries, make for sobering reading – with the UK total number of breweries now standing at 1715 compared to 1815 at the start of 2024. The drop in overall brewery numbers over the last twelve months is much higher than in recent years; at the start of 2023 the total was 1828, dropping by just 8 overall to 1815 at the start of 2024.
Legacy Covid debt, restricted access to market via pubs, and tight margins for small breweries are all factors in the rise in brewery closures say the Society of Independent Brewers and Associates (SIBA), who compile the figures.
“The consumer appetite for independent beer is high and our indications suggest volumes for independent beer at the end of 2024 were up on 2023 – the issue for small independent breweries is lack of access to market and rising costs, making it incredibly difficult to remain profitable. Speaking to many indie brewers who have closed their doors over the last twelve months it is a very similar story; they can’t sell into enough of their local pubs and make enough of a profit to remain viable.”
“Given the demand for independent beer isn’t being met locally you have to wonder whether more local beer in community pubs would help pub closure rates as well.” Andy Slee, SIBA Chief Executive
Looking at the quarterly closure rates offers a small glimmer of hope, with the fourth quarter of 2024 showing a further slowing of the closure rate to -24 across the UK, compared to a net closure rate of -27 in the third quarter leading up to the end of September, a -29 net closure rate in Q2 and an even larger -38 net closure rate in Q1 2024.
Wales has also had a positive year, being the only place where brewery numbers are in modest growth and an overall net brewery number of 97 at the start of 2025, compared to 96 at the start of 2024. The average closure rate in percentage terms across the UK was around 5.5%, which shows that whilst Northern Ireland had a relatively small shift in their net number of just -6 breweries in percentage terms this was by far the highest, accounting for a more than -20% reduction in the overall number of brewers. Areas with a much higher density of breweries such as the South East had a much bigger drop in overall brewery number terms but a percentage drop of around -7%, very similar to similar sized region the Midlands.
“Brewery closures were at their highest in the first quarter of 2024 and steadily and encouragingly declined throughout the year, with the slowest rate of closures recorded in Q4 leading up until the end of December. As we begin 2025 our hope is that the dial continues to turn in the right direction and we see stable or even growing brewery numbers in the UK; however this will not happen without greater support from Government for the hugely valued indie brewers all across the UK.” Slee added.