The latest SIBA Independent Beer Report 2024 has unveiled encouraging data, indicating a significant rebound in beer production among craft breweries, reaching levels reminiscent of the pre-pandemic era. The report reveals a notable 14% increase in average beer production compared to 2023, signifying a robust resurgence in the industry.
Moreover, the resurgence extends to cask beer, with volumes experiencing a substantial 10% year-on-year surge, reflecting a renewed enthusiasm for traditional brewing methods and artisanal craftsmanship.
A key highlight of the report underscores the growing consumer preference for independent craft beer, with 55% of beer consumers now embracing local craft beer—a marked increase from 47% in 2023. This surge in popularity has positioned local craft beer on par with global lager in terms of consumer preference.
Andy Slee, Chief Executive of SIBA, acknowledges the positive trajectory of demand for independent craft beer. However, he emphasizes the prevailing challenges faced by small independent breweries, particularly concerning profitability, escalating costs, and financial pressures stemming from residual Covid-related debts. Slee notes that despite the promising indicators highlighted in the report, many breweries are grappling with survival rather than thriving, warranting a stance of cautious optimism.
The report reveals that while 43% of independent brewers still prioritize survival, this figure marks a significant decline (-20%) from 2023 when a majority of 63% were solely focused on survival.
Furthermore, the research exposes a concerning trend in the beer industry, with only 30% of 18-24-year-olds reportedly consuming beer, lagging behind wines and spirits. Additionally, nearly a quarter of consumers (24%) admit to never visiting their local pub, indicating shifting consumption habits and preferences.
In terms of brewing trends, stout, best bitter, and pale ale continue to lead the pack, followed closely by lager, highlighting sustained demand for traditional beer styles. Notably, craft lager has witnessed a remarkable surge, with 56% of independent brewers now venturing into this category—a 5% increase from the previous year, marking it as the largest growth category for 2024.
Another burgeoning trend highlighted in the report is the rising popularity of non-alcoholic beer, with a 2% growth observed in the number of breweries producing alcohol-free options, reaching 8%.
Slee underscores the increasing appeal of no and low alcohol beer, attributing the trend to advancements in technology facilitating the production of high-quality, great-tasting low or no alcohol beer. He notes that more independent breweries are seizing the opportunity to cater to this burgeoning market segment, reflecting the industry’s adaptability and commitment to meeting evolving consumer preferences.
