craft beer boom saturated

UK craft beer market reaches saturation point

25 April, 2019

The craft beer boom in the UK has plateaued with just 8 new breweries opening in 2018 compared to the 390 added the year before.

According to accountancy group UHY Hacker Young, the total number of UK breweries reached 2,274 at the end of 2018, up from 1,352 five years ago, but the market for further growth has dried up.

The group believes the craft beer market has become difficult for new entrants as multinational brewers continue to buy and invest in the more successful craft breweries. 

James Simmonds, partner at UHY Hacker Young, said: “We’re not saying that the market is shrinking just the number of players is consolidating and sales growth is going to be harder to come by.

“Craft breweries need to ensure their business model is s sustainable and profitable at an earlier stage and not just rely on the idea they’ll constantly be able to grow their way out of trouble.

“Multinational breweries can no longer count on the traditional beer market to further expansion. Large corporations will continue to look for new, niche products with high growth potential to fuel their revenue and profits.”

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