The beer market - UK

As of 2020, the global beer market has been confronting mixed trends. Despite a projected growth from an estimated value of $593 billion in 2017 to $646.24 billion in 2025, with a CAGR of 1.8%, the industry is being reshaped by factors such as premiumization, health consciousness, and evolving consumer preferences. In the UK, beer holds a significant position, being the second most consumed alcoholic beverage after wine. However, British beer consumption has shown a decline, with total annual beer sales dropping 20% from 2006 to 2019. The craft beer segment has shown promise, with a growing interest from consumers in trial and sophistication, leading to a CAGR of 14.2% in on-trade sales volume between 2015 and 2019. Despite the adverse effects of the COVID-19 pandemic on the industry, with a significant decrease in sales during lockdowns, the market has seen resilience in off-trade sales. Trade analysis reveals that the UK imports slightly more beer than it exports, with a coverage rate of 96%, indicating a well-balanced trade scenario. The UK's production levels remain stable, ranking as the 9th largest beer producer globally in 2019, and the domestic industry employs a significant number of individuals, particularly in the hospitality sector. Overall, the market dynamics are influenced by a combination of traditional consumption patterns and new trends like premiumization, health awareness, and a robust craft beer movement..Shifting Tides in the UK Beer Market: A Focus on Health, Premiumization, and Craft Evolution The UK beer market has been undergoing significant changes reflecting a shift in consumer preferences towards health consciousness, premium quality, and diversity in taste. Despite the historical dominance of well-recognized brands like Carlsberg, Corona, and Heineken, and the preeminence of Guinness in the UK, the market has been evolving. Traditional beer consumption is decreasing overall, with an average Brit consuming between 60 and 80 liters of beer annually in recent years, a decline from previous levels. However, the market for beer in the UK is far from stagnant. It is reshaping itself, as exemplified by the surge in craft beer popularity. The demand for various beer types such as white, blond, red or amber, and dark beers is diversifying, and UK consumers are becoming more adventurous, with roughly 80 to 90 percent open to trying new and innovative beer flavors. The craft beer sector, which experienced significant growth with on-trade sales volumes increasing annually by over 10 percent from 2015 to 2019, demonstrates the shifting consumption dynamics. Consumer spending habits have revealed an interesting pattern of premiumization, where individuals are opting to spend more on lesser quantities. Craft beer has been a primary beneficiary of this trend, drawing in approximately 5 to 10 million drinkers in the UK, testament to the sector's rising allure. The premiumization movement is illustrated by the escalation in beer sales value, which, despite a decline in volume, saw consumer spending on beer in the UK reach nearly GBP 5 to 6 billion. Health trends have also left an indelible mark on the UK beer market. Driven by a general decline in alcohol consumption, sales of low or non-alcoholic beer saw a substantial increase of around 50 to 70 percent within a couple of years. The quest for healthier options has not compromised taste, as consumers expect alcohol-free beers to offer a flavor experience comparable to their alcoholic counterparts. Another notable trend is the factor of convenience, with nearly half of younger drinkers preferring chilled beers. A packaging shift towards cans, now encompassing over 70 percent of the beer sales, suggests a move towards more sustainable and recyclable options favored by consumers. From an industry perspective, the UK has remained steadfast as one of the top beer producers globally, ranked among the top ten with a stable output since 2012. Despite this, the number of breweries and related employment has hit a plateau due to market saturation and.### Key Market Players in the Global Beer Industry When discussing the beer industry, it is impossible to overlook the influence of some major international players that have shaped and continue to shape the global market. These titans of the brewing world not only dominate production and sales but also actively influence consumer trends and industry innovations. **AB InBev**: Formally known as Anheuser-Busch InBev, this Belgium-based company is a true giant in the beer market. The result of multiple mergers and acquisitions, AB InBev boasts a vast portfolio of over 500 beer brands, including well-known names like Budweiser, Corona, and Stella Artois. **Heineken**: Originating from The Netherlands, Heineken enjoys global recognition with its green bottles and red star logo. As one of the world's leading brewing companies, Heineken's international presence is strong, and it continues to grow through strategic investments and an expanding assortment of products that cater to a diverse consumer base. **CR Snow**: A name that might not be as familiar to Western drinkers, CR Snow is a key player in the Chinese market, which is a significant beer-consuming region. This company has gained a reputation for producing Snow beer, which has become the best-selling beer brand on the planet thanks to its massive popularity in China. **Scottish & Newcastle**: As the UK's largest and historically significant brewery, Scottish & Newcastle has maintained a strong presence through popular brands like Foster's. Its production sites in Manchester, Reading, and Tadcaster are a testament to the brewery's commitment to the UK market and its cultural heritage. **Craft Breweries**: The emergence of craft breweries is transforming the beer landscape by providing consumers with a plethora of niche and local options. These small, independent breweries pride themselves on creating unique flavors that appeal to consumers' growing taste for authenticity and quality over quantity. Craft beer's popularity is driving growth in the beer industry and underscoring a trend toward premiumization. **BrewDog**: Hailing from Scotland, BrewDog is a prime example of the craft beer revolution. With a strong emphasis on branding and a vast array of innovative brews, BrewDog has not only captured the hearts of UK beer aficionados but also made substantial inroads into international markets. These major players represent a diverse array of business models and strategies that underline the complexity of the global beer market. From multinational giants to local craft brewers, each has had a significant impact on the industry and continues to navigate the changing landscape of consumer preferences and market

Inforamtion

• Number of pages : ~ 40 pages
• Format : Digital and PDF versions
• Last update : 11/11/2020

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