After a decade-long boom, has the UK’s craft beer scene fallen on hard times? Tough trading conditions and rising costs have meant overall brewery numbers in the UK have slipped back slightly in the third quarter of 2023, according to the Society of Independent Brewer’s (SIBA) latest tracking figures.

Covering the period from the start of July 2023 to the end of September 2023, the SIBA UK Brewery Tracker shows the net brewery number across the UK dropped by nine in Q3, compared to a rise of two in Q2 and four in Q1. 

SIBA chief executive Andy Slee said: “Brewery numbers have been more stable than many would have predicted, with no large percentage decreases but it is still concerning to see numbers slip back slightly, and while it was positive to see beer duty frozen in the Autumn Statement, the chancellor could have gone further and boosted the Draught Relief to 20 per cent or more which guarantees beer sold in pubs has a lower rate of duty.

“When breweries are facing rampant costs from the increased National Living Wage, energy costs and inflationary pressures, there was nothing extra in the Autumn Statement to cover this.”

“Breweries closing is of course bad news for consumer choice, but even more than that, it means many communities across the UK have lost a valued local business which provides jobs, contributes to the local economy, and provides a real community asset.”

YouGov polling released earlier this year as part of the SIBA Craft Beer Report 2023 found eight out of 10 consumers believe a well-run independent brewery has a positive effect on its local community.

Andy added: “The majority of beer produced by independent breweries is sold within a 40-mile radius, contributing to the local economy and supporting jobs in the area – the issue we have is not a lack of consumer demand but a lack of opportunity to get independent beers on to bars that are dominated by global brewers. Independent breweries need better access to market and increased government support to avoid more brewery closures.”

The new tracker figures show a mixed picture across the UK, with some areas fairing worse than others when it comes to net closures and others bucking the trend by remaining level or seeing modest growth.

Both Northern Ireland and the West of England each experienced a rise of three in their overall brewery number, with the East of England seeing the next highest with a plus two net rise. Scotland remained stable, with no net change in brewery number.

The North East and North West each saw a small drop of one in their brewery number, with the Midlands and South East each seeing a slightly larger drop of two. Wales had a larger net close rate of five, but it was the South West which fared the worst of any region with a loss of six across the third quarter of 2023.

 

SIBA UK BREWERY TRACKER Q3, 2023

UK 1,817 (-9)

Scotland 142 (-)

Northern Ireland 30 (+3)

East 184 (+2)

North East 261 (-1)

North West 208 (-1)

Wales 103 (-5)

West of England 74 (+3)

South West 199 (-6)

South East 332 (-2)

Midlands 284 (-2)

The above shows the new total number and net change compared to 30 June this year.