UK Craft Beer Market Research Report By Type (Ale, Lager, Stouts), By Ingredients (Malt, Yeast, Enzymes, Hops) and By Distribution channel (Store, Non-store) - Forecast to 2035

UK Craft Beer Market Overview

As per MRFR analysis, the UK Craft Beer Market Size was estimated at 5.11 (USD Billion) in 2023.
The UK Craft Beer Market Industry is expected to grow from 6.43(USD Billion) in 2024 to 17.44 (USD Billion) by 2035. The UK Craft Beer Market CAGR (growth rate) is expected to be around 9.495% during the forecast period (2025 - 2035).

Key UK Craft Beer Market Trends Highlighted

The UK Craft Beer Market is subject to several important trends shaped by social changes and consumer preferences in the region. The increasing availability and demand for local beer is one challenge in the market since most consumers prefer purchasing from local breweries. The surge in popularity of craft beer has stimulated interest in new flavors and styles as opposed to mass-produced beer, and brewers are now experimenting with different ingredients and brewing methods at a more advanced level. In addition, many consumers want to support sustainable practices, which requires producers to adopt more responsible sourcing and brewing policies. Some of the gaps that can be addressed in the UK Craft Beer Market include the development of innovative products aimed at health-conscious consumers, such as low-alcohol and non-alcoholic beers.

The growth of e-commerce has also opened the door for local breweries to promote their distinctive products and expand their audience base. Additionally, the experience-driven consumer culture allows for further development of customer loyalty through engaging activities such as brewery tours and tastings events. There has been growing attention toward mixed method brewing and inter-brewery collaboration recently, which creates hype and introduces new flavors into the market. Social media and other online platforms enable brands to interact with consumers in a more personal manner, which improves brand loyalty.

At the same time, the focus on health and wellness continues to drive new product development with the market offering an increased range of low calorie and low carbohydrate beers. Overall, the UK Craft Beer Market remains lively and is constantly changing, influenced by consumer needs and new ideas.

UK Craft Beer Market Drivers

Growing Consumer Preference for Craft Beer

The UK Craft Beer Market Industry is experiencing a significant shift towards craft beer consumption, driven by consumers' growing preference for unique and high-quality beverages. Research indicates that over 60% of UK consumers now prefer craft beer over mass-produced options, reflecting a move toward locally sourced and artisanal products. Organizations such as the British Beer and Pub Association have reported that the craft beer sector in the UK saw an increase in the number of breweries from approximately 1,500 in 2015 to over 9,000 in 2022, indicating a robust growth trend.

This growth is being supported by the emphasis on quality and authenticity, which resonates particularly well with younger consumers and those interested in the 'experience economy'. As awareness and appreciation for craft beer continue to rise, the UK Craft Beer Market Industry is expected to see a sustained increase in demand, contributing to overall market growth in the coming years.

Impact of Local and Sustainable Brewing Practices

The UK Craft Beer Market Industry is also benefitting from increasing consumer interest in sustainability and local sourcing. Studies have shown that nearly 70% of British consumers prefer products that are locally brewed, which supports local economies and reduces carbon footprints. The Campaign for Real Ale (CAMRA) has been a strong proponent of local breweries, advocating for the support of traditional brewing methods and sustainable practices.

This growing preference for sustainable products correlates with the overall trend of consumers seeking transparency in food and beverage production. The UK government has also introduced initiatives aimed at promoting local businesses, further enhancing the market for locally brewed craft beers and aligning with consumer values, thus driving market growth.

Rise of Online Retailers and E-commerce Platforms

The rapid expansion of online retail in the UK is revolutionizing how consumers access craft beer. E-commerce platforms, including major retailers who have heavily invested in Home Delivery Services, have reported significant increases in craft beer sales, making it easier for consumers to discover and purchase a wide variety of beers from the comfort of their homes. According to recent surveys, online shopping accounted for over 30% of all alcohol sales during the pandemic, with craft beer seeing the highest segment growth.

The UK Craft Beer Market Industry is leveraging this shift by establishing partnerships with digital platforms to reach a broader audience, capitalizing on the convenience factor that consumers now prioritize.

Regulatory Support for Craft Breweries

The UK government has enacted several favorable regulations that support the growth of small and independent breweries, positively impacting the UK Craft Beer Market Industry. Initiatives such as reduced beer duty for smaller brewers, which includes a significant reduction in the excise duty for breweries producing less than 5,000 hectoliters, have incentivized new entrants into the market. According to the latest government statistics, this policy has resulted in over 1,000 new breweries being established since 2018 alone.

Furthermore, the government's commitment to supporting the hospitality sector post-COVID, with various grants and investment programs, continues to facilitate growth opportunities for craft breweries, ensuring a vibrant future for the UK Craft Beer Market Industry.

UK Craft Beer Market Segment Insights

Craft Beer Market Type Insights

The UK Craft Beer Market has seen a remarkable evolution, particularly around the Type of beer segment, reflecting a diverse consumption pattern and an increasingly discerning consumer base. Within this vibrant landscape, Ale, Lager, and Stouts represent the predominant categories, each contributing uniquely to the market's dynamics. Ale, known for its varied flavor profiles and brewing methods, often showcases the creativity of craft brewers in the UK. This segment remains incredibly popular due to its extensive range of styles, such as Pale Ale and India Pale Ale, which cater to a wide spectrum of taste preferences from fruity and floral to hoppy and bitter, enabling it to capture a substantial portion of the consumer market.

Lager, on the other hand, presents a contrasting brewing approach and is often associated with a crisp and refreshing taste. The rise of craft Lager in the UK can be attributed to its appeal to consumers seeking lighter, easy-drinking options. As consumer preferences shift towards quality over quantity, craft Lagers are gaining traction for their innovative brewing techniques and enhanced flavors, often drawing from traditional German and Czech influences. Moreover, Stouts, characterized by their rich and robust flavors, have carved out a loyal following among beer enthusiasts. Their deep, dark, and complex nature, often infused with ingredients like coffee and chocolate, has cultivated a distinctive niche that resonates well with consumers looking for rich, indulgent experiences.

In recent years, the craft beer scene in the UK has been invigorated by trends such as sustainability and local sourcing, with many breweries prioritizing local ingredients and environmentally friendly practices. This focus not only enhances the quality and uniqueness of the beers produced but also fosters a sense of community and support for local economies. However, the craft beer market is not without its challenges, including increasing competition from mainstream brands and the difficulty of navigating regulations. Despite these hurdles, innovation and consumer engagement remain critical growth drivers, offering significant opportunities for breweries that can articulate their brand stories effectively. 

Understanding the UK Craft Beer Market segmentation is essential for stakeholders, as it reveals vital patterns in consumer preferences and purchasing behaviors that can inform future marketing and operational strategies. Overall, the Type segment exemplifies the industry's broader trends towards diversity, quality, and localism, positioning the UK Craft Beer Market as a dynamic and evolving industry amidst a rapidly changing retail landscape.

Craft Beer Market Ingredients Insights

The Ingredients segment of the UK Craft Beer Market is pivotal, as it significantly influences the flavor, aroma, and overall quality of craft beers. Ingredients such as Malt, Yeast, Enzymes, and Hops play crucial roles in beer production, contributing to the brewing process and impacting the final product’s characteristics. Malt, often considered the backbone of beer, provides essential sugars for fermentation and determines the beer's color and body. Yeast not only ferments sugars into alcohol but also imparts distinct flavors, making its variety choices vital in the craft beer industry.

Enzymes, although less visible, enhance the brewing process by breaking down starches, thereby improving efficiency. Hops are vital for balancing malt's sweetness and adding bitterness and aroma, making them a key ingredient for many brewers. As consumer preferences shift towards complex flavors and unique profiles, the demand for high-quality ingredients continues to rise, reflecting the growing trend of craft beer innovation in the UK Craft Beer Market. The segmentation based on these ingredients showcases the industry's evolution and highlights the importance of sourcing quality raw materials for producing distinctive craft beers that resonate with consumers.

Craft Beer Market Distribution channel Insights

The Distribution channel is a vital segment in the UK Craft Beer Market, playing a crucial role in connecting producers with consumers. In 2024, the overall market was valued at 6.43 billion USD, showcasing the increasing demand for craft beer in the UK. The distribution channels are primarily divided into Store and Non-store formats, each playing its distinctive role. Stores, including supermarkets and specialized retailers, dominate the market, providing consumers with convenient access and influencing purchasing habits. Non-store distribution, such as online platforms and direct-to-consumer sales, has gained significance, driven by changing consumer preferences for convenience and home delivery options.

This shift has opened opportunities for craft breweries to reach a wider audience, particularly amid the rising trend of e-commerce. Notably, the cultural shift towards locally sourced products has also bolstered the craft beer segment, encouraging retailers to emphasize their local selections. As consumer demand continues to grow, understanding the dynamics of these distribution channels is essential for stakeholders looking to capitalize on the burgeoning UK Craft Beer Market revenue. Overall, the segmentation highlights the diverse avenues through which craft beer is made available, reflecting trends in consumer behavior and preferences within the industry.

UK Craft Beer Market Key Players and Competitive Insights

The UK Craft Beer Market has been experiencing significant growth and transformation, characterized by a diverse range of innovative breweries competing to capture the attention of an increasingly discerning consumer base. With more than 2,000 craft breweries in operation, the market is saturated yet vibrant, offering a plethora of choices for beer enthusiasts. The competitive landscape is shaped by brewery size, regional presence, product offerings, and brand loyalty, as well as evolving consumer preferences towards unique flavors and sustainable production methods. Innovations in brewing techniques and marketing strategies play crucial roles in differentiating brands, and collaborations among breweries are common to enhance market reach and consumer engagement. The overall market is witnessing a trend toward premiumization, where consumers are willing to pay more for high-quality products, thereby encouraging breweries to continuously evolve their offerings and maintain a competitive edge.

Cloudwater Brew Co has established itself as a prominent player within the UK craft beer landscape, recognized for its commitment to quality and innovation. The brewery has built a loyal following by consistently producing a range of beers that showcase unique flavor profiles, often informed by seasonal ingredients. Its approach combines traditional brewing methods with modern experimentation, attracting both craft beer aficionados and casual consumers. Cloudwater Brew Co has also excelled in its branding and marketing strategies, fostering a strong presence in both local and national markets through events, collaborations, and community engagement initiatives. The strengths of Cloudwater Brew Co lie in its ability to adapt to market trends, maintain high standards of production, and cultivate a passionate consumer base, ensuring its continued relevance in the competitive craft beer space.

Variable Brewing operates within the UK craft beer market with a distinctive focus on small-batch production and innovative flavors. The company is well-regarded for its portfolio of beers that emphasize creativity while prioritizing local sourcing and sustainable practices. Variable Brewing's commitment to quality and craftsmanship allows it to stand out in a crowded marketplace, appealing to consumers seeking unique and artisanal experiences. The brewery has made significant strides in establishing its presence, bolstered by strategic partnerships and collaborations both within the industry and along the supply chain. Its key products include a variety of ales and lagers, which regularly feature limited-edition offerings that generate excitement and engagement among beer enthusiasts. Although Variable Brewing's scale is smaller in comparison to larger competitors, its strengths lie in its focus on niche markets, community involvement, and an agile response to consumer demands, fostering a strong reputation and cultivating a loyal customer base in the UK region.

Key Companies in the UK Craft Beer Market Include:

• Cloudwater Brew Co


• Variable Brewing


• Beavertown Brewery


• Vocation Brewery


• Thornbridge Brewery


• Tiny Rebel Brewing


• Brewery of Saint Mars of the Desert


• Adnams


• Harviestoun Brewery


• Camden Town Brewery


• Magic Rock Brewing


• Wild Beer Co


• Fuller's


• BrewDog


• Northern Monk

UK Craft Beer Market Industry Developments

The UK Craft Beer Market has seen a dynamic period recently, marked by various developments and current affairs. Companies like BrewDog and Beavertown Brewery have been expanding their product lines and enhancing their brewery operations, with a noticeable push towards sustainable practices and innovative brewing techniques. In September 2023, Cloudwater Brew Co announced a significant partnership aimed at increasing its distribution channels, indicating a strategic growth approach. Additionally, Variable Brewing has been gaining traction in the market, focusing on community engagement and exclusive releases.

The market is also witnessing notable acquisitions, including Thornbridge Brewery's acquisition of small local brands to diversify offerings, which was announced in August 2023. Vocation Brewery and Magic Rock Brewing have been enhancing their presence through collaborations with local restaurants and festivals, further solidifying their market positions. Overall, the UK Craft Beer Market continues to grow, pushing valuation increases as craft beer's popularity persists. 

This growth also reflects increasing consumer demand for artisanal products, great innovation, and experiential marketing strategies adopted by major players like Camden Town Brewery and Northern Monk.

Craft Beer Market Segmentation Insights

Craft Beer Market Type Outlook

• Ale


• Lager


• Stouts

Craft Beer Market Ingredients Outlook

• Malt


• Yeast


• Enzymes


• Hops

Craft Beer Market Distribution channel Outlook

• Store


• Non-store

Report Attribute/Metric	Details
Market Size 2023	5.11 (USD Billion)
Market Size 2024	6.43 (USD Billion)
Market Size 2035	17.44 (USD Billion)
Compound Annual Growth Rate (CAGR)	9.495% (2025 - 2035)
Report Coverage	Revenue Forecast, Competitive Landscape, Growth Factors, and Trends
Base Year	2024
Market Forecast Period	2025 - 2035
Historical Data	2019 - 2024
Market Forecast Units	USD Billion
Key Companies Profiled	Cloudwater Brew Co, Variable Brewing, Beavertown Brewery, Vocation Brewery, Thornbridge Brewery, Tiny Rebel Brewing, Brewery of Saint Mars of the Desert, Adnams, Harviestoun Brewery, Camden Town Brewery, Magic Rock Brewing, Wild Beer Co, Fuller's, BrewDog, Northern Monk
Segments Covered	Type, Ingredients, Distribution channel
Key Market Opportunities	Innovative flavor profiles, Sustainable brewing practices, Increased online sales channels, Local sourcing trends, Craft beer tourism experiences
Key Market Dynamics	Growing consumer preference for local, Innovative brewing techniques and flavors, Increased online sales channels, Sustainability and eco-conscious practices, Competitive pricing strategies among brewers
Countries Covered	UK