Mobile Menu

Beer Production in the UK - Market Research Report (2014-2029)

Timilehin Atere Timilehin Atere London, United Kingdom Last Updated: November 2024 SIC C11.050

Revenue

£9.5bn

2024-25

£9.5bn

Past 5-Year Growth

Profit

£X.Xbn

Employees

22,675

Businesses

1,478

Wages

£XXX.Xm

Beer Production in the UK industry analysis

UK beer producers’ revenue is projected to fall at a compound annual rate of 1% over the five years through 2024-25 to £9.5 billion. However, revenue is expected to climb by 2.6% in 2024-25, boosted by positive macroeconomic conditions such as reduced inflationary pressure and rising consumer confidence triggering spending on discretionary items like beer. At the same time, the on-trade sector, a key market for beer businesses, has been boosted by large sporting events in the summer, like the 2024 European Football Championship. A continuous increase in patronage from people spending more time in the office and going for drinks after work is also helping drive revenue and profit growth for breweries. A positive spring harvest in 2024-25 has reduced production costs, as key inputs like barley have fallen in price, further supporting profit growth in 2024-25.
Revenue is expected to grow at a compound annual rate of 0.5% over the five years through 2029-30 to £9.7 billion. Increasing health consciousness will continue denting beer sales as more people look to cut down on how much they drink, limiting spending on beer. However, rising demand for non-alcoholic beer should help offset this. Production costs are likely to rise due to increased investment in sustainable production – an area many beer companies have set targets for. Increased National Insurance contribution and another hike in the National Living Wage from April 2025 will hike up labour costs for both beer producers and key markets like pubs for beer producers, stifling demand from those markets and putting a dent in brewers' revenue and profit.

Trends and Insights

  • A summer of sport boosts beer sales. Increased footfall in pubs and event spaces due to the Euros, Wimbledon and Paris Olympics saw sports fans consume more beer, driving a £100 million boost in the UK hospitality sector.
  • Lager loses its popularity. Lager is the leading product sold by beer producers, but it’s falling out of favour. Instead, people are increasingly turning to the trendy alternative of craft beers.
  • London’s profit opportunities make it an attractive base. However, rent is expensive, which discourages beer producers from setting up shop in the capital.
  • Craft breweries become increasingly prevalent. British drinkers are moving away from traditional brand lagers and switching to locally brewed pale ales. There’s a high number of new craft breweries opening to meet the growing demand.

Access hundreds of analysis and data

  • Market estimates from 2014-2029
  • Critical performance data and rankings
  • Detailed analysis of competitive forces and the external environment
  • PDF report or online database with Word, Excel and PowerPoint export options
  • 100% money back guarantee

Industry Statistics and Trends

Market size and recent performance (2014-2029)

Industry revenue has declined at a CAGR of 1.0 % over the past five years, to reach an estimated £9.5bn in 2024.

Trends and Insights

An improved barley harvest aids beer producers

  • Barley is one of the key inputs used in beer production. According to Simpsons Malt, the barley harvest in the spring of 2024 has been much more positive than in previous years, which has aided UK beer producers.
  • Additional trends and insights available with purchase
Beer Production in the UK
Revenue (2014-2029)
IBISWorld Logo Source: IBISWorld

Industry outlook (2024-2029)

Market size is projected to grow over the next five years.

Trends and Insights

Prices of beer from pubs could still rise despite the labour government relief duty

  • In October 2024, the government announced a 1.7% reduction in Alcohol Duty for draught products February 2025. While this appears beneficial for businesses, the rising National Living Wage (NLW) and National Insurance (NI) contributions have left many in the industry expecting beer prices to increase in the coming years.

Biggest companies in the Beer Production in the UK

Company
Market Share (%)
2025
Revenue (£m)
2025
Heineken UK Ltd
1,845.3
Molson Coors Brewing Company (UK) Ltd
1,772.2
AB InBev UK Ltd
1,449.5

To view the market share and analysis for all 5 top companies in this industry, view purchase options.

Products & Services Segmentation

Beer Production in the UK
Products & Services
IBISWorld Logo Source: IBISWorld

Industry revenue is measured across several distinct product and services lines, including Lager, Ale and Stout and porter. Lager is the largest segment of the Beer Production in the UK.

Trends and Insights

British drinkers move away from lager

  • Lager is typically light, clear, sparkling and served cold. It’s matured for one to two weeks in cold storage to stabilise the product and develop flavour. The key difference between ale and lager is fermentation. A lager is fermented at a much lower temperature and with different yeast.
  • More insights available in the full report

Table of Contents

About this industry

Industry definition

Brewers buy barley, malt, sugar, yeast and other ingredients to process into various beer products, including lager, ale and stout. Beer is packaged in bottles, cans or kegs for sale to wholesalers, retailers, pubs and bars.

What's included in this industry?

LagerAleStout and porterNon-alcoholic beer

Companies

Heineken UK LtdMolson Coors Brewing Company (UK) LtdAB InBev UK Ltd

Purchase this report to view all 5 major companies in this industry.

Related Terms

HECTOLITREPILSNERALCOHOL BY VOLUME (ABV)

Industry Code

SIC 2007

SIC 11.05 - Beer Production in the UK

Performance

Get an indication of the industry's health through historical, current and forward-looking trends in the performance indicators that make or break businesses.

Analyst insights

A summer of sport boosts beer sales. Increased footfall in pubs and event spaces due to the Euros, Wimbledon and Paris Olympics saw sports fans consume more beer, driving a £...

In this chapter (4)

  • Current Performance
  • Outlook
  • Volatility
  • Life Cycle

Key metrics

  • Annual Revenue, Recent Growth, Forecast, Revenue Volatility
  • Number of Employees, Recent Growth, Forecast, Employees per Business, Revenue per Employee
  • Number of Businesses, Recent Growth, Forecast, Employees per Business, Revenue per Business
  • Total Profit, Profit Margin, Profit per Business

Charts

  • Revenue, including historical (2014-2023) and forecast (2024-2029)
  • Employees, including historical (2014-2023) and forecast (2024-2029)
  • Businesses, including historical (2014-2023) and forecast (2024-2029)
  • Profit, including historical (2014-2024)
  • Industry Volatility vs. Revenue Growth
  • Industry Life Cycle

Detailed analysis

  • Trends in supply, demand and current events that are driving current industry performance
  • Expected trends, economic factors and ongoing events that drive the industry's outlook
  • Key success factors for businesses to overcome volatility
  • How contribution to GDP, industry saturation, innovation, consolidation, and technology and systems influence the industry's life cycle phase.

Products and Markets

Learn about an industry's products and services, markets and trends in international trade.

Analyst insight

Lager loses its popularity. Lager is the leading product sold by beer producers, but it’s falling out of favour. Instead, people are increasingly turning to the trendy altern...

In this chapter

  • Products & Services
  • Major Markets
  • International Trade

Key metrics

  • Largest market segment and value in 2024
  • Product innovation level
  • Total imports, level and trend
  • Total exports, level and trend
  • Trade Balance

Charts

  • Products & services segmentation in 2024
  • Major market segmentation in 2024
  • International trade, including imports by country and exports by country

Detailed analysis

  • Trends impacting the recent performance of the industry's various segments
  • Innovations in the industry's product or service offering, specialization or delivery method
  • Key factors that successful businesses consider in their offerings
  • Buying segments and key trends influencing demand for industry products and services
  • Recent trends in import and export volumes, country of origin or destination, and expected future trends

Geographic Breakdown

Discover where business activity is most concentrated in an industry and the factors driving these trends to find opportunities and conduct regional benchmarking.

Analyst insights

London’s profit opportunities make it an attractive base. However, rent is expensive, which discourages beer producers from setting up shop in the capital.

In this chapter (1)

  • Business Locations

Charts

  • Share of revenue, establishment, wages and employment in each region
  • Share of population compared to establishments in each region in 2024

Tables

  • Number and share of establishments in each region in 2024
  • Number and share of revenue each region accounts for in 2024
  • Number and share of wages each region accounts for in 2024
  • Number and share of employees in each region in 2024

Detailed analysis

  • Geographic spread of the industry across Europe, and trends associated with changes in the business landscape
  • Key success factors for businesses to use location to their advantage

Competitive Forces

Get data and insights on what's driving competition in an industry and the challenges industry operators and new entrants may face, with analysis built around Porter's Five Forces framework.

Analyst insights

Craft breweries become increasingly prevalent. British drinkers are moving away from traditional brand lagers and switching to locally brewed pale ales. There’s a high number...

In this chapter (4)

  • Concentration
  • Barriers to Entry
  • Substitutes
  • Buyer & Supplier Analysis

Key metrics

  • Industry concentration level
  • Industry competition level and trend
  • Barriers to entry level and trend
  • Substitutes level and trend
  • Buyer power level and trend
  • Supplier power level and trend

Charts

  • Market share concentration among the top 4 suppliers from 2019-2024
  • Supply chain including upstream supplying industries and downstream buying industries, flow chart

Detailed analysis

  • Factors impacting the industry’s level of concentration, such as business distribution, new entrants, or merger and acquisition activity.
  • Key success factors for businesses to manage the competitive environment of the industry.
  • Challenges that potential industry entrants face such as legal, start-up costs, differentiation, labor/capital intensity and capital expenses.
  • Key success factors for potential entrants to overcome barriers to entry.
  • Competitive threats from potential substitutes for the industry’s own products and services.
  • Key success factors for how successful businesses can compete with substitutes.
  • Advantages that buyers have to keep favorable purchasing conditions.
  • Advantages that suppliers have to maintain favorable selling conditions.
  • Key success factors for how businesses can navigate buyer and supplier power.

Companies

Learn about the performance of the top companies in the industry.

Analyst insights

Heineken tackles climate risk with sustainable farming. By partnering with Vivescia, Heineken's initiative helps suppliers adopt regenerative practices focusing on biodiversi...

In this chapter

  • Market Share Concentration
  • Companies
  • Company Spotlights

Charts

  • Industry market share by company in 2020 through 2024
  • Major companies in the industry, including market share, revenue, profit and profit margin in 2024
  • Overview of Heineken UK Ltd's performance by revenue, market share and profit margin from 2018 through 2024
  • Overview of Molson Coors Brewing Company (UK) Ltd's performance by revenue, market share and profit margin from 2018 through 2024
  • Overview of AB InBev UK Ltd's performance by revenue, market share and profit margin from 2018 through 2024
  • Overview of revenue, market share and profit margin trend for 2 additional companies

Detailed analysis

  • Description and key data for Heineken UK Ltd, and factors influencing its performance in the industry
  • Description and key data for Molson Coors Brewing Company (UK) Ltd, and factors influencing its performance in the industry
  • Description and key data for AB InBev UK Ltd, and factors influencing its performance in the industry
  • Description, key data and performance trends for 2 additional companies

External Environment

Understand the demographic, economic and regulatory factors that shape how businesses in an industry perform.   

Analyst insights

Real household disposable income levels influence spending on beer. Higher disposable incomes leave people with more money in their pockets to spend on their favourite beers,...

In this chapter

  • External Drivers
  • Regulation & Policy
  • Assistance

Key metrics

  • Regulation & policy level and trend
  • Assistance level and trend

Charts

  • Regulation & Policy historical data and forecast (2014-2029) 
  • Assistance historical data and forecast (2014-2029) 

Detailed analysis

  • Demographic and macroeconomic factors influencing the industry, including Regulation & Policy and Assistance
  • Major types of regulations, regulatory bodies, industry standards or specific regulations impacting requirements for industry operators
  • Key governmental and non-governmental groups or policies that may provide some relief for industry operators.

Financial Benchmarks

View average costs for industry operators and compare financial data against an industry's financial benchmarks over time. 

Analyst insights

Beer producers invest heavily in scale and non-alcoholic innovation. Molson Coors, AB InBev, and Diageo are upgrading facilities to boost efficiency and diversify with non-al...

In this chapter

  • Cost Structure
  • Financial Ratios
  • Key Ratios

Key metrics

  • Profit margin, and how it compares to the sector-wide margin
  • Average wages, and how it compares to the sector-wide average wage
  • Largest cost component as a percentage of revenue
  • Industry average ratios for days' receivables, industry coverage and debt-to-net-worth ratio

Charts

  • Average industry operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2024
  • Average sector operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2024
  • Investment vs. share of economy

Data tables

  • Liquidity Ratios (2018-2022)
  • Coverage Ratios (2018-2022)
  • Leverage Ratios  (2018-2022)
  • Operating Ratios (2018-2022)
  • Assets (2018-2022)
  • Liabilities (2018-2022)
  • Cash Flow & Debt Service Ratios (2014-2029)
  • Revenue per Employee (2014-2029)
  • Revenue per Enterprise (2014-2029)
  • Employees per Establishment (2014-2029)
  • Employees per Enterprise (2014-2029)
  • Average Wage (2014-2029)
  • Wages/Revenue (2014-2029)
  • Establishments per Enterprise (2014-2029)
  • IVA/Revenue (2014-2029)
  • Imports/Demand (2014-2029)
  • Exports/Revenue (2014-2029)

Detailed analysis

  • Trends in the cost component for industry operators and their impact on industry costs and profitability 

Key Statistics

Industry Data

Data Tables

Including values and annual change:

  • Revenue (2014-2029)
  • IVA (2014-2029)
  • Establishments (2014-2029)
  • Enterprises (2014-2029)
  • Employment (2014-2029)
  • Exports (2014-2029)
  • Imports (2014-2029)
  • Wages (2014-2029)

Top Questions Answered

Unlock comprehensive answers and precise data upon purchase. View purchase options.

What is the market size of the Beer Production in the UK industry in United Kingdom in 2024?

The market size of the Beer Production in the UK industry in United Kingdom is £9.5bn in 2024.

How many businesses are there in the Beer Production in the UK industry in 2024?

There are 1,478 businesses in the Beer Production in the UK industry in United Kingdom, which has grown at a CAGR of 1.5 % between 2019 and 2024.

Has the Beer Production in the UK industry in United Kingdom grown or declined over the past 5 years?

The market size of the Beer Production in the UK industry in United Kingdom has been declining at a CAGR of 1.0 % between 2019 and 2024.

What is the forecast growth of the Beer Production in the UK industry in United Kingdom over the next 5 years?

Over the next five years, the Beer Production in the UK industry in United Kingdom is expected to grow.

What are the biggest companies in the Beer Production in the UK market in United Kingdom?

The biggest companies operating in the Beer Production market in United Kingdom are Heineken UK Ltd, Molson Coors Brewing Company (UK) Ltd and AB InBev UK Ltd

What does the Beer Production in the UK in United Kingdom include?

Lager and Ale are part of the Beer Production in the UK industry.

Which companies have the highest market share in the Beer Production in the UK in United Kingdom?

The company holding the most market share in United Kingdom is Heineken UK Ltd.

How competitive is the Beer Production in the UK industry in United Kingdom?

The level of competition is moderate and increasing in the Beer Production in the UK industry in United Kingdom.

Related Industries

Widen your competitive advantage with related industries

Competitors

  • Spirit Production in the UK
  • Wine Production in the UK
  • Cider Production in the UK
  • Soft Drink Production in the UK

Complementors

  • Pubs & Bars in the UK

International industries

  • Global Beer Manufacturing
  • Breweries in the US
  • Craft Beer Production in the US
  • Breweries in Canada
  • Beer Manufacturing in Australia

View all industries in United Kingdom

Methodology

How are IBISWorld reports created?

IBISWorld has been a leading provider of trusted industry research for over 50 years to the most successful companies worldwide. With offices in Australia, the United States, the United Kingdom, Germany and China, we are proud to have local teams of analysts that conduct research, data analysis and forecasting to produce data-driven industry reports.

Our analysts start with official, verified and publicly available sources of data to build the most accurate picture of each industry. Analysts then leverage their expertise and knowledge of the local markets to synthesize trends into digestible content for IBISWorld readers. Finally, each report is reviewed by one of IBISWorld’s editors, who provide quality assurance to ensure accuracy and readability.

IBISWorld relies on human-verified data and human-written analysis to compile each standard industry report. We do not use generative AI tools to write insights, although members can choose to leverage AI-based tools within the platform to generate additional analysis formats.

What data sources do IBISWorld analysts use?

Each industry report incorporates data and research from government databases, industry-specific sources, industry contacts, and our own proprietary database of statistics and analysis to provide balanced, independent and accurate insights.

Key data sources in the UK include:

  • Office for National Statistics
  • Office for Budget Responsibility
  • Bank of England

Analysts also use industry specific sources to complement catch-all sources, although their perspective may focus on a particular organization or representative body, rather than a clear overview of all industry operations. However, when balanced against other perspectives, industry-specific sources provide insights into industry trends.

These sources include:

  • Industry and trade associations
  • Industry federations or regulators
  • Major industry players annual or quarterly filings

Finally, IBISWorld’s global data scientists maintain a proprietary database of macroeconomic and demand drivers, which our analysts use to help inform industry data and trends. They also maintain a database of statistics and analysis on thousands of industries, which has been built over our more than 50-year history and offers comprehensive insights into long-term trends.

How does IBISWorld forecast its data?

IBISWorld’s analysts and data scientists use the sources above to create forecasts for our proprietary datasets and industry statistics. Depending on the dataset, they may use regression analysis, multivariate analysis, time-series analysis or exponential smoothing techniques to project future data for the industry or driver. Additionally, analysts will leverage their local knowledge of industry operating and regulatory conditions to impart their best judgment on the forecast model.

IBISWorld prides itself on being a trusted, independent source of data, with over 50 years of experience building and maintaining rich datasets and forecasting tools. We are proud to be the keystone source of industry information for thousands of companies across the world.

Learn more about our methodology and data sourcing on the Help Center.