Growth in the Craft Beer Industry – How, and Why?

Markets are naturally subject to trends, and their ebb and flow – but there are some markets that see exponential growth, and show little sign of letting up. One such market is that of beer – a simple product with a long history, but one which is shaking off its fusty image and embracing both history and the future of the craft.

The number of brewers producing beer in the UK has risen by 7.5% since pre-pandemic levels alone. Craft beer is now a household term, and a product found on supermarket shelves and pub taps across the country. But how big has it grown, and how exactly did we get here? Here, we’ll explore the growth of the craft beer industry, and the many facets that make up a broad and complex industry.

Global Growth

First, it is important to note that the craft beer industry’s exponential growth in the last few decades has not been limited to the UK. There has been a global shift in the way consumers approach alcoholic beverages, with smaller craft breweries taking more and more of a market share internationally. 

European and American markets are experiencing particular growth regarding craft beer, as a result of their close-knit history and the cultural ties that make beer such an important product for consumers. In order to understand a little more about this growth, though, it is important to look back at the history of beer – and the catalysts that led to the growth of a new industry.

Setting the Scene

In the UK, the post-war period saw smaller, independent breweries and brewpubs bought up by larger UK brewing institutions like Tetley’s and Whitbread. As these larger breweries expanded, a homogenisation of beer and beer recipes occurred, leading to a reduction in the variety available to pub guests and at-home consumers. Something had to change.

The Craft Revolution

The craft revolution saw smaller, independent breweries growing once more, as a gap in the market appeared for unique and diverse products. Meanwhile, breweries in the US began experimenting with traditional recipes such as the India Pale Ale, with modern techniques enabling the brewing of new products with startling – and exciting – flavour profiles. 

Before long, craft breweries were catching on in both the US and the UK, inspiring a shift in attitude for bars and hospitality venues. Today, craft IPAs are available from online stores and independent bottle shops across the West, providing consumers with the opportunity to experience a wide range of flavour profiles and explorations in beer from different brewers. Creativity has re-entered beer, and the major conglomerates have taken notice. 

Investment and Future

Much of the growth of the craft industry is not directly attributable to the success of many small-scale businesses, though; it is the ubiquitous popularity of the few that broke through to larger investment pools that led the charge, with industry giants Brewdog defining the scene and bringing in record profits. Meanwhile, larger breweries continue to buy up smaller independents, with Beavertown now owned by Heineken. Whether the past will repeat itself remains to be seen, but the growth remains.