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Issues in the UK Brewing Market

Brewing Market and Growth Opportunities:-

The UK brewing market faces challenges and opportunities in the current landscape:

  • Oversaturation and Craft Brewery Bubble Burst: The UK craft brewery market has experienced oversaturation, leading to a burst in the bubble as there is intense competition for limited shelf space and restaurant placements.
  • Market Decline in Beer Production: The beer production industry in the UK has faced challenges due to lockdowns and a sharp drop in demand, resulting in a substantial decline in production in 2020. However, there has been a rebound in 2021.
  • Growth in Certain Segments: Despite challenges, there are growth opportunities in the UK beer market. Key trends for beer in 2023 include widening availability, increased marketing support, innovation, better-tasting products, and rising consumer engagement, driving opportunities for the segment.

Growth in the UK Brewery Industry

The UK brewery industry has shown stability and growth in certain areas:

  • Overall Stability: Despite challenges, the total number of breweries in the UK has remained relatively stable, with only a slight decrease of four in the first quarter of 2023, representing a 0.22% change.
  • Regional Growth: Some regions have seen notable growth in brewery numbers. The South-East experienced the largest increase with a positive change of +3, and the Midlands and the East of England also showed growth with a +2 rise in both areas.
  • Trade Perspective: The UK beer market is projected to grow by 7.81% from 2023 to 2027, resulting in a market volume of more than £26 billion.

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