Are Craft Beer Sales Declining?

I was moved to write this post by a conversation I had with a customer just recently. At our peak, Seven Cellars sold over 80,000 cans and bottles of craft beer in one year. That was a particularly thirsty year mind you, and yes, beer sales have certainly come down from there. However, as a beer lover, I am still extremely positive about the incredible brewing scene across the UK today.

The UK beer landscape is constantly evolving, and recent statistics suggest a nuanced story. While overall beer sales have seen a decline, craft beer is bucking the trend and showing signs of growth in 2024. This shift in consumer preferences indicates a move from quantity to quality, which is a positive development for independent merchants like Seven Cellars because we have never sold the big brands or mass produced beer.

The Current Landscape

According to recent figures from the British Beer and Pub Association (BBPA), total beer sales in the UK have dropped by approximately 5% in the past year. However, within this context, craft beer sales have seen an increase of 6%, reflecting a growing interest in artisanal and high-quality brews. This demonstrates a broader trend where consumers are opting for fewer but more exceptional drinking experiences.

Quality Over Quantity

As people choose to drink less volume, the focus has shifted toward quality over quantity. This trend is particularly beneficial for independent retailers like Seven Cellars, where customers are more likely to seek out unique and flavourful craft beers. Craft beer aficionados are no longer just looking for a cold pint; ( if we're still allowed to buy by the pint that is) they want to engage with the story behind the beer, the brewing process, and the local ingredients that contribute to its flavour profile.

Factors Affecting Craft Beer Sales

Several factors have influenced the craft beer scene in the UK:

1. Duty Levels: The UK's beer duty is one of the highest in Europe, which can put pressure on both consumers and producers. However, craft brewers are finding ways to innovate and remain competitive, often focusing on quality ingredients that justify a higher price point. 

2. Impact of COVID-19: The pandemic had a significant impact on the hospitality industry, but it also led to a boom in home consumption of craft beer. What lockdown? - we didn't have one! We were delivering across Sussex night and day. Many consumers discovered our wonderful local breweries and began to appreciate the diversity of flavours available, leading to a lasting shift in buying habits.

3. Rise of Independent Breweries: The number of independent breweries in the UK has surged over the past decade, with over 1800 breweries currently operating. This growth has increased competition, but it has also enriched the market with a wider variety of craft beers, allowing consumers to explore and discover new favourites.

4. Growth of Independent Merchants: When Seven Cellars opened its doors 10 years ago, the landscape was quite different. There were fewer independent merchants specialising in craft beer, but now, thanks to a vibrant community of independent retailers, consumers have more options than ever to purchase quality craft beer.

Quality Local Brewers

Quality is crucial to the craft beer renaissance, and several local breweries are leading the charge. Breweries like Beak, Burning Sky, and Unbarred are consistently innovating and producing exceptional beers that resonate with consumers. These breweries focus on quality ingredients, creative brewing techniques, and a commitment to sustainability, ensuring that their products stand out in a crowded marketplace.

As more consumers shift their focus to quality-driven purchases, it becomes increasingly clear that craft beer has a very bright future. Independent merchants like Seven Cellars play a vital role in this ecosystem (even if I say so myself)  by providing access to these exceptional brews, fostering community, and championing local producers.

A Positive Outlook

While overall beer sales may be declining, the craft beer sector is thriving, and the shift toward quality over quantity is undoubtedly a positive trend. As consumers become more discerning in their choices, there is ample reason for optimism within the craft beer industry. For Seven Cellars, this trend not only reinforces the importance of their craft beer selection but also highlights the continued relevance and appeal of high-quality, locally sourced products.

In summary, while the overall beer market faces challenges, the growth of craft beer is a testament to the passion and creativity of local brewers and the dedication of independent merchants. As we embrace this quality-focused approach, there’s a lot to be positive about in the UK craft beer scene! Have a browse on our website or choose a specially curated craft beer gift pack today.