The United Kingdom has seen a net loss of 100 breweries over the past year, according to the latest figures from the Society of Independent Brewers and Associates (SIBA) UK Brewery Tracker. As of January 2025, the total number of breweries in the UK stands at 1,715, down from 1,815 in January 2024. This marks a significant acceleration in closures compared to the previous year, when the total number of breweries fell by just eight.
SIBA attributes this decline to multiple factors, including lingering COVID-era debt, restricted access to the pub market, and rising operational costs. Despite reports of strong consumer demand for independent beer, these challenges have made it increasingly difficult for small breweries to remain viable.
“The consumer appetite for independent beer is high, and our indications suggest volumes for independent beer at the end of 2024 were up on 2023. The issue for small independent breweries is lack of access to market and rising costs, making it incredibly difficult to remain profitable,” said Andy Slee, Chief Executive of SIBA. “Many indie brewers who have closed their doors over the last twelve months tell a very similar story: they can’t sell into enough local pubs or make enough of a profit to stay viable.”
Industry Trends
The pace of brewery closures was particularly steep in early 2024, with the highest net loss recorded in Q1 (-38). However, the rate of closures has gradually slowed throughout the year, with Q4 2024 showing a net decline of -24, compared to -27 in Q3 and -29 in Q2. While this deceleration could signal stabilization, it remains uncertain whether this trend will continue in 2025.
Regional Disparities
The impact of brewery closures has varied across the UK. Wales was the only region to record a net increase in breweries, growing from 96 to 97 over the past year. In contrast, the Midlands and the South East experienced the steepest declines, each losing 24 breweries.
Northern Ireland, while seeing a relatively small numerical decline (-6), faced the highest percentage drop in breweries, with a reduction of more than 20% year-on-year. Other regions such as Scotland (-11), the North East (-17), and the East (-10) also saw significant declines.
Key Contributing Factors
SIBA has pointed to several critical challenges facing independent breweries:
- Market Access Barriers: Many independent breweries struggle to place their products in local pubs, which often favor established suppliers.
- Economic Pressures: Rising costs for raw materials, energy, and labor have tightened profit margins.
- Post-Pandemic Debt: Some small breweries are still dealing with COVID-related financial burdens, limiting their ability to invest and expand.
Despite these difficulties, the slowdown in closure rates in late 2024 suggests the industry may be moving toward a more stable footing. However, whether this trend continues will depend on broader economic conditions and market dynamics in the coming months.
