The UK beer market is expected to grow both in volume and value over the next decade, reaching a value of nearly £6billion by 2035, a new report shows.

Over the next 10 years the beer market in the UK is expected to experience a Compound annual growth rate (CAGR) increase of 0.1% in volume to 4.1 billion litres and a 3.9% increase in value to $8bn (£5.9bn), according to a new report.

The figures, which form part of United Kingdom – Beer – Market Analysis, Forecast, Size, Trends And Insights from IndexBox, said that between 2024 and 2035, there will be an upward consumption trend in the UK over the next decade.

In 2024, approx. 4bn litres of beer were consumed in the UK; reducing by -4.7% compared with the year before. Overall, consumption showed a relatively flat trend pattern. Over the period under the report review, consumption hit record highs at 4.bn litres in 2016; however, from 2017 to 2024, consumption stood at a somewhat lower figure.

The revenue of the beer market in the UK reduced modestly to £3.9bn in 2024, falling by -4.6% against the previous year. This figure reflects the total revenues of producers and importers (excluding logistics costs, retail marketing costs, and retailers’ margins, which will be included in the final consumer price). According to the new report, over the period under review, consumption, however, showed a relatively flat trend pattern. As a result, consumption attained the peak level of £4.9bn. From 2023 to 2024, the growth of the market remained at a lower figure.

In terms of production in 2024, approx 3.8bn litres of beer were produced in the UK; stabilizing at the previous year’s figure. Over the period under review, production saw a mild descent. The pace of growth was the most pronounced in 2021 with an increase of 19% against the previous year. Beer production peaked at 4.4bn litres in 2015; however, from 2016 to 2024, production remained at a lower figure.

In value terms, beer production fell modestly to £3.9bn in 2024 estimated in export price. The report adds that in general, production, however, showed a relatively flat trend pattern. The most prominent rate of growth was recorded in 2022 with an increase of 32% against the previous year. As a result, production reached the peak level of £4.9bn. From 2023 to 2024, production growth failed to regain momentum, they said.

On the import front, the UK recorded a decline in irs overseas purchases of beer, which decreased by -16% to 684m litres in 2024. In general, the report outlined, imports recorded a noticeable decrease. The pace of growth was the most pronounced in 2016 with an 18% increase.

As a result, imports reached the peak of 1.1bn litres. From 2017 to 2024, the growth of imports failed to regain momentum. In value terms, beer imports declined slightly to £424m in 2024.  Overall, imports showed a slight downturn. The most prominent rate of growth was recorded in 2016 with an increase of 18%. Over the period under review in the report, imports reached the maximum at £538m in 2018; however, from the period of 2019 to 2024, imports stood at a somewhat lower figure.

When we focus on overseas shipments of beer, in 2024 these increased by 11% to 436M litres, rising for the second year in a row after three years of decline. Over the period under review in United Kingdom – Beer – Market Analysis, Forecast, Size, Trends And Insights exports, however, recorded a noticeable contraction. The pace of growth was the most pronounced in 2023 with an increase of 28%.

The exports peaked at 658M litres in 2013; however, from 2014 to 2024, the exports stood at a somewhat lower figure. In value terms, beer exports expanded notably to £455m in 2024. In general, exports, however, recorded a pronounced setback. The most prominent rate of growth was recorded in 2021 with an increase of 7.5% against the previous year. The exports peaked at £728m in 2013; however, from 2014 to 2024, the exports stood at a somewhat lower figure.

Looking at exports by country, Ireland (124M litres), the United States (93M litres) and France (32M litres) were the main destinations of beer leaving the UK, accounting for a combined 57% share of total exports.

The Netherlands, Spain, China, Canada, Italy, South Korea, Germany and Belgium lagged somewhat behind, together comprising a further 28%, the report demonstrated. From 2013 to 2024, the most notable rate of growth in terms of shipments, amongst the main countries of destination, was attained by China with a CAGR of +11.7%, while the other leaders experienced more modest paces of growth. When we look at value terms, the largest markets for beer exported from the UK were the United States (£118m), Ireland (£92m) and France (£44m), with a combined 54% share of total exports.