Are UK Breweries Facing Extinction as Craft Beer Market Declines?

Over 40 breweries in the UK have filed for insolvency within the past year, as independent craft beer makers grapple with escalating costs and diminished consumer spending.

According to UHY Hacker Young, a significant number of entrepreneurs entering Britain’s craft beer scene are now encountering an oversaturated market that cannot sustain the surge of breweries established in the last 15 years.

An analysis by the accountancy group revealed that 43 breweries became insolvent in the year ending February.

This group included notable names such as Hackney Brewery, Burton Town Brewery, and Fourpure, the south London establishment where Prime Minister Boris Johnson and Chancellor Rishi Sunak were photographed in 2021.

UHY Hacker Young remarked that many small brewers are “caught in a perfect storm of soaring production costs amid tight household budgets.””

Inflation has impacted all areas of brewery operations, including energy expenses, brewing equipment, and raw ingredients. Furthermore, recent hikes in the national minimum wage and employer national insurance contributions have escalated workforce costs. Concurrently, ongoing cost of living challenges are compelling consumers to cut back on spending.

Brian Johnson, a partner at UHY Hacker Young, stated, “The craft beer boom was among the most vibrant trends in food and drink. Sadly, it is a sector that has drawn too many entrepreneurs who find it hard to achieve profitability.

“The recent closures indicate that the UK craft beer market cannot sustain all the independent producers that have emerged over the past 15 years. With consumers spending less, many breweries will need to adjust to tougher conditions.””

The rising insolvency figures illustrate a decline in Britain’s brewery industry, as many others exit the market through various means.

A February report by the Society of Independent Brewers and Associates highlighted that the UK lost 100 breweries in 2024, with the total decreasing from 1,815 at the beginning of the year to 1,715 by 2025, representing a more significant drop than in previous years.

Johnson added, “For smaller brewers who depend on loyal local customers, even a minor decrease in demand can lead to collapse. With numerous brewers vying for market share, survival becomes increasingly challenging.””