The SIBA Craft Beer Report 2023: Highlights

SIBA’s latest Craft Beer Report was launched at BeerX in Liverpool in March and remains the most definitive and comprehensive report of its kind in the UK market.

This year’s report reveals a post-Covid world in which small independent brewers are battling the rapid onset of the financial crisis while they have yet to fully recover from the effects of the pandemic. However, it also shows a sector that is innovating and has broadened its routes to market, becoming less reliant on sales to pubs and investing in growing sales through direct routes to the consumer such as taprooms and web shops.

This year’s SIBA Craft Beer Report showed the hugely positive effect independent breweries have on their communities

Eight out of 10 people in the UK believe that a well-run independent brewery has a positive effect on its local community, according to this year’s SIBA Craft Beer Report.

The report, which features SIBA member survey data, industry analysis and commentary, as well specially commissioned consumer research via YouGov – shows more people than ever are discovering their local brewery bar or taproom, or buying direct from the source via a webshop.

This community spirit is a sentiment shared by brewers themselves, with a whopping 98% of SIBA brewers saying they consider their local community to be important to them.

“Our members’ sales footprint has transformed over recent years as brewers look to meet the growing local demand for quality independent craft beer. Over a quarter of independent brewery sales are now direct to consumers, with over 40% now running their own bar or taproom as well as seeing an increased trend in online sales,” said Andy Slee, SIBA Chief Executive.

The SIBA Craft Beer Report also highlights some of the challenges the industry is facing, providing a post-Covid health check for a struggling on-trade, with beer sales via pubs yet to recover to previous levels.

“Beer sales are still well short of pre-pandemic levels, thanks to the stuttering recovery of the Nation’s pubs and the pressures on people’s spending from the cost-of-living crisis,” Andy said.

The report shows pub visits fell sharply in the last 12 months, with 20% of the population not visiting a pub at all – traditionally a critical outlet for local beers and independent breweries. Access to pubs is also a challenge for small brewers, with Global companies continuing to control the Nation’s beer taps.

“Small independent breweries lead the way in innovation – producing the UK’s most flavoursome, interesting and high quality beers – yet we only account for 6% of the UK beer market, which is still dominated by globally-owned, main stream brands.

“It’s vital that small independent breweries are able to deliver the beers the research clearly shows are in-demand, whether that’s via their own taprooms and shops or via the vital pub trade,” added Andy.

5 Causes For Concern

SIBA member breweries saw average production recover further in 2022, after the devastating impact of the pandemic in 2020, but it still remains -11% below 2019 levels. Brewers were only able to increase their prices by 2%, which represents a real term fall in prices in an environment of double digit inflation.

There has been a significant fall in the overall number of consumers ever drinking beer, especially among women, and more than a fifth of consumers say they no longer drink any alcohol.

Pub visits fell sharply with more than a fifth of all consumers not visiting a pub in the last 12 months. This means broadening routes to market is essential for brewery survival.

The craft beer sector is still failing to make in-roads on the issue of inclusion and diversity, with a continued and very significant overrepresentation of white males in the workforce.

5 Causes For Optimism

A sale direct to consumers, whether by pub, bar, website or taproom, is the most profitable route for most brewers. These sales seem to be growing fastest with over a quarter of all output now sold through these channels.

Cask beer is a fresh, hand-crafted product, sold in reusable containers, often in local communities. SIBA members appear to be leading cask beer recovery.

A growing number of consumers believe that genuine craft beer should be produced by an independent brewery. Only 3% believe it can be made by a global brewer.

Nine out of 10 SIBA members would recommend SIBA membership to a friend, which presents SIBA with a huge opportunity given we still represent less than half of all registered independent brewers.

Independent brewers are local heroes. Eight out of 10 consumers say a well-run independent brewery has a positive effect on its local community, and 98% of SIBA brewers consider their local community to be important to them. Two-thirds of SIBA brewers are planning to grow this year.

+5%

INCREASE IN AVERAGE BEER VOLUMES IN 2022

SIBA MEMBERS’ PRODUCTION INCREASED LAST YEAR BUT WAS STILL -11% DOWN ON 2019

*Production data from SIBA’s membership returns

+7% GROWTH IN CASK PRODUCTION

FROM 46% OF SIBA MEMBERS’ PRODUCTION IN 2021 TO 53% IN 2022

-4% FALL IN CAN VOLUMES

CANS NOW ACCOUNT FOR 9% OF SIBA MEMBERS’ PRODUCTION IN 2022 DOWN FROM 13% IN 2022

OF SIBA BREWERS ARE NOW USING THE ASSURED INDEPENDENT BRITISH CRAFT BREWER SEAL

684

SIBA BREWERIES AT THE START OF 2023

MEMBERSHIP DOWN JUST OVER -2.5% FROM 702 IN JANUARY 2022

57%

43% USE THE SEAL ON THEIR BOTTLED BEERS

Rizzolio’s automatic and economic Compactblock filler and capper added to our bottling range.

The Rizzolio Range - For carbonated & still drinks

Having sold Rizzolio’s semi-automatic counter pressure fillers to brewers and cidermakers for over 4 years, we’re pleased to now offer Rizzolio’s Automatic Compactblock Counter Pressure Filler and Capper. With an output of 700 to 900 bottles per hour, you can fill and cap carbonated and non-carbonated products, including beer, hop water, kombucha, and soft drinks. The Compactblock is a great stepping stone between Rizzolio’s semi-auto fillers and CIMEC bottling lines. Options are available for single/double pre-evacuation of oxygen for low DO pickup values. As with all the lines we supply, these machines are installed, commissioned and supported by our team of engineers.

Fittings Made To Order

We’re aware that some fittings are difficult to source - we have the solution

We can make fittings to order in our fabrication workshop. Whether hosetails, valves or adaptors - RJT, tri-clamp, BSP, and/or DIN - we can help. Coded welding is no problem. We can also provide bespoke pipework assemblies for CIP, steam, flow plates, products and services. If you’re struggling to source, please call us.

Vigo installation

Energy Efficient Chillers

With energy saving features to help reduce power consumption & operational costs.

Quantor chillers include features to save energy and reduce CO2 footprints by means of higher efficiency and optional heat-recovery features (reversible via heat-pump for producing hot water). Our engineers install complete systems with bespoke ringmains for controlling product and/or air temperature.

Ongoing Support

6 ways we support you and your Vigo equipment before, during & after sale

We wouldn’t be here today, 39 years on, without the level of support we offer our customers. Our Engineering Team of 9 install, make technical adaptations, service, repair, manufacture and UKCA mark where necessary. Read the Case Studies online for what our customers say about the support and backup we give.

We’ll find the best bottles for your brand. Call us at Rawlings Bristol on 0117 960 4141, email hello@rawlingsbristol.co.uk or visit www.rawlingsbristol.co.uk

15%

OF SIBA MEMBERS PRODUCED LOW AND NO BEERS IN 2022

68%

OF SIBA MEMBERS PRODUCED A GLUTEN-FREE BEER IN 2022

A RISE OF +11% ON 2021

84%

26% OF SIBA MEMBERS PRODUCED A PORTER/ STOUT IN 2022

A RISE OF +25% ON 2021

OF SIBA MEMBER BREWERIES NOW HAVE A WEBSHOP OVER HALF (54%) NOW HAVE A BREWERY SHOP AND 40% HAVE A TAPROOM

SIBA MEMBERS ACHIEVED AN AVERAGE

+2% PRICE INCREASE ON THEIR BEERS OVER ALL CHANNELS IN 2022

DUE TO RISING COSTS THIS EQUATES TO A REAL TERM LOSS

98%

OF SIBA MEMBERS SAY THEIR RELATIONSHIP WITH THEIR COMMUNITY IS IMPORTANT +8% UP ON 2022