UK Beer Market – Industry Analysis, Forecasts and Opportunity Assessment (2016-2023)

Report on UK Beer Market – Industry Analysis, Forecasts and Opportunity Assessment (2016-2023)

Introduction to UK Beer Market

The beer was mainly brewed by abbeys and independent alehouses in the middle ages. In
the 16th century, however, with the dissolution of monasteries, British brewing lost its touch with religious houses, and names like Shepherd Neame and Bass Red Triangle became familiar in the early 17th century. After the World War II brewing got concentrated in the handful of large corporations and names like AB InBev became hit. Tax cut for small breweries gave way for new breweries creating and gaining market share.

Beer still dominates the alcoholic drink market with (35.8%), wine (32.5%), spirits (22.7%), cider (6.7%) and ‘ready-to-drink’ beverages such as ‘alcopops’ (2.4%).

Market Dynamics

With the rise of consumer demand and launch of more than digestible products, the number of beer trademarks in the UK doubled since 2010. In 2017 the number of new trademarks rose by 20% to 2372.

With so many firms operating in the saturated market, there has been a considerable rise in the number of legal disputes.

The number of pubs being operated has seen a considerable decline over the years. Nearly 10,500 pubs or 17% of the pubs operating in 2000 has closed down. Numerous reasons have been attributed to this like the high taxes on the pint, smoking ban, inflation and the recession in 2008. This has also been attributed to supermarkets and shops due to changing consumer preferences, registering a rise of 27% since 2000.

Market Segmentation

Demand for the beer is essentially driven by per-capita alcohol consumption, income, price, and consumer preferences. High beer duty, growing competition from alternative products, supermarket discounting and changing social trends have weighed heavily on beer consumption in recent years. The per-capita consumption of beer for the UK was 67.7 litres in 2016.  Consumers are increasingly looking for more variety and higher quality in their drinks. They continue to demand variety with innovative flavours and distinctiveness from traditional beers.

Between 2012 and 2015, the household spending on alcoholic drinks increased by 0.3%, and alcohol became 60% more affordable in 2016 than it was in 1980. In 2016, 31.9% of all alcohol (by volume of pure alcohol) was sold through licensed properties like pubs, bars, and restaurants. This has considerably decreased from 47% alcohol sold in the on-trade in 2000. There has been a change in consumer preference, and people now prefer to purchase off trade, i.e. from supermarkets and shops, to consume at home.

Geographical Analysis

The vast majority of the economic value of alcoholic production in the UK comes from two different activities: brewing beer and distilling spirits for export. London brewers are clustered in the inner boroughs of Southwark, Tower Hamlets, Islington, Hackney, and Lambeth.

The alcoholic drink industry includes producers, wholesalers and distributors, licensed or unlicensed point-of-sale operators and hospitality players such as hotels or cafe that serve alcohol. The production and distribution arms are closely linked with agriculture, trucking, capital goods manufacturing, and packaging industries.

Major participants include farmers producing the raw materials, the brewers, the distributors – pubs, supermarket and the local shops.

Major Trade Partners

UK exports beer to more than 30 countries including Sweden, the US, Italy and Norway. With a saturated alcoholic market in UK, breweries are in constant search to expand and proliferate their sales by identifying new markets across the globe. The UK shipped British pint to 121 countries, nearly one billion pints,to meet growing consumer demands, in 2016.

The report contains a comprehensive analysis on:

  • UK Beer Market Segments
  • UK Beer Market Drivers, Restraints and Opportunities
  • UK Beer Market Size & Forecast 2016 to 2023
  • Supply & Demand Value Chain
  • UK Beer Market Current Trends
  • Competition & Major Companies
  • Technology and R&D Status
  • Porters Five Force Analysis
  • Strategic and Critical Success Factor Analysis of Key Players

This report is an elaborate aggregation of primary inputs from industry experts and participants across the supply chain. It provides in-depth market segmentation that is derived from extensive product mapping exercises, macroeconomic factors, and other qualitative and quantitative insights. The impact of all such factors is delivered across multiple market segments and geographies.

Report Highlights

  • Detailed Historical Overview (Market Origins, Product Launch Timeline, etc.)
  • Consumer and Pricing Analysis
  • Market dynamics of the industry
  • In-depth Market Segmentation
  • Historical and Projected Market Sizing in terms of volume and value
  • Recent market trends and Impact Factors
  • R&D Status and Technology Overview
  • Extensive Industry Structure Coverage

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