The number of new microbreweries and cider producers starting up in the UK has jumped by nearly a quarter in the past year, as companies rush to join the country’s fast-growing craft beer industry.
The number of cider producers rose by 25%, and microbreweries by 24% – a significant increase on the 8% growth the year before – as the popularity of boutique alcohol continued to accelerate. The rapid rise has been driven by increasing numbers of start-ups eager to join one of the fastest growing segments of the UK’s food and beverage market, explained accountancy group UHY Hacker Young.
Craft beer’s higher price point allows microbreweries to compete financially with larger brewers, while recent research emphasised the soaring popularity of craft beers; 80% of consumers said they wanted an even greater range of products when surveyed by Peach Report, demonstrating room for further growth within the sector.
UHY Hacker Young partner James Simmonds said: “This dynamic sector of the drinks industry is booming as new start-up breweries are attracted by the growing consumer appetite for their products.
“Craft beer is viewed as an increasingly aspirational leisure accessory – so the profit margins available can be very attractive.
“The recent success of small brewers across the UK also offers encouragement to budding entrepreneurs and investors.”
As well as growth within the microbrewing sector, the number of cider producers has grown by 25% since 2013-14. Since 2012, the number of applications to HMRC for cider duty has jumped by 131% – from 13 to 30.
Simmonds continued: “Cider brewers are also rushing to join the boutique alcohol revolution and we’ve seen a sharp increase in their numbers over the last three years.
“The drinks industry is providing a lot of new opportunities and it is a great pleasure to see that many people are embracing entrepreneurism by setting up new brands.”
© FoodBev Media Ltd 2024