UK brewery closure rate slows in Q3 2024

United Kingdom | For the first time in 2024 some regions of the UK have seen their overall brewery number rise, with the overall net closure rate across the UK also slowing, according to figures released last month by the SIBA (Society of Independent Brewers) UK Brewery Tracker.

The UK had a net closure rate of -27 in the third quarter leading up to the end of September, compared to a -29 net closure rate in Q2 and an even larger -38 net closure rate in Q1. Whilst this marks the third consecutive quarter of overall brewery number decline there are some success stories, with the South West seeing an increase of +2, the highest out of all regions in the UK, followed by Wales with a +1 increase.

The SIBA UK Brewery Tracker takes into account all brewery openings and closures to give an accurate picture of the number of active brewing businesses – the latest figures show the total number of active UK breweries now stands at 1721, compared to 1748 at the end of June.

Closure rate appears to be slowing

“It’s positive to see some regions of the UK now in growth and an overall UK-wide closure rate which appears to be slowing. Demand for beer from independent breweries has never been higher from consumers, but access to market and profitability are still big challenges for small brewers all across the UK, with high taxation and rising raw ingredients costs squeezing the already fine margins most independent breweries are working with. In short small breweries need your support so next time you’re in the pub or supermarket opt for an independent beer from a local brewery and help to keep local breweries and pubs alive,” says Neil Walker, SIBA Head of Comms.

Year on year analysis of SIBA’s Beerflex system, which supplies guest ales into tied pubs across the UK, shows an increased demand for independent beer, with throughput per beer tap averaging a 13% increase, the majority of which is cask beer brewed by independent brewers less than 40 miles from the pub.

“The challenge isn’t consumer demand, the challenge is getting small independent breweries access to pubs that are dominated by Global brewers,” Neil added.

Examining the figures regionally it is Northern Ireland which has struggled in Q3, with a huge -6 net closure rate taking the country’s total number of active breweries from 29 down to 23. Elsewhere in the UK the North East of England also had a -6 net closure rate, but on a much larger starting number – with 242 breweries now remaining compared to 248 at the end of June. It was a similar story in the South East, with a -6 net closure rate taking the overall number of breweries from 331 to 325.

Scotland and the East of England both struggled with a -4 closure rate, with 129 breweries in Scotland as of the end of September as apposed to 133 at the end of June, compared to 183 in the East, down from 187.

The Midlands had a -3 net closure rate with the total number dropping from 332 to 329, followed by the North West which had a smaller -1 closure rate taking the net figure down from 189 to 188. As mentioned above the South West had the biggest (+2) increase taking the total from 203 to 205, followed by Wales (+1) where the net number rose from 96 to 97 breweries.

SIBA UK BREWERY TRACKER Q3, 2024

Covering period 30/06/2024 – 30/09/2024

• Scotland 129 (-4)
• Northern Ireland 23 (-6)
• East 183 (-4)
• North East 242 (-6)
• North West 188 (-1)
• Wales 97 (+1)
• South West 205 (+2)
• South East 325 (-6)
• Midlands 329 (-3)

UK: 1721 (-27)

The above shows the new total number and net change compared to 30.06.24

Prior tracker statistics can be viewed via www.siba.co.uk/brewerytracker.