The popularity of craft breweries

The popularity of craft beers and breweries in the UK has its roots in the 20th century, when breakaway brewers drew inspiration from the American craft beer movement. Since then, craft breweries have become a staple of the UK beverage industry. As of the end of 2024, 1,721 craft breweries were operating in the UK, cementing this as a thriving and competitive industry. We can arrange specialist insurance tailored specifically for craft breweries, providing comprehensive cover for the unique needs of the industry. Whether you’re already brewing or considering starting a brewery, our expert team is here to advise you on the specialist insurance options available to support and protect your business.

Craft breweries now rival traditional beers and ales across the country. Let’s explore the reasons behind their growing popularity.

What is a craft brewery?

Craft breweries are typically smaller-scale operations compared to traditional breweries. Independent and often locally focused, these breweries pride themselves on creating distinctive beers and ales using traditional methods and innovative ingredients.

The use of unique, often locally sourced ingredients enables craft breweries to develop signature flavours, maintaining a personal touch with every brew. Craft breweries also play an integral role in their communities, fostering connections with local customers who develop a strong loyalty to their products.

Unlike craft breweries, regular breweries focus on large-scale, consistent production to meet national or even international demand. Regular beers are designed for uniformity, affordability, and widespread availability, while craft beers are known for their rich, complex flavours and creative experimentation. Limited runs, seasonal ingredients, and exclusivity further set craft beers apart.

How popular are craft breweries?

Craft breweries are more popular than ever. As of 2024, there were 1,721 active craft breweries in the UK, marking a slight rise from 1,748 in mid-2024. Closure rates for breweries have also begun to slow, offering hope for continued industry growth.

Consumer preferences are shifting toward craft beers, with 65% of UK drinkers preferring them over mainstream beers, according to a study by a major pub chain. The SIBA Independent Beer Report 2024 highlights that:

• Production volumes at independent breweries have increased by 14%
• Cask beer volumes are up 10% year-on-year
• 55% of beer consumers drink local craft beer

Revenue in the craft beer industry is even projected to grow at a compound annual rate of 0.8% through 2024-2025, reaching £1.8 billion.

These numbers confirm that craft beer is no longer a niche product but a major part of the UK’s brewery industry.

How our insurance helps craft breweries

Despite their growing popularity, craft breweries face significant challenges. The SIBA report reveals that 43% of brewers cite survival as their primary focus. While demand for independent beer is high, small breweries often struggle with access to markets, tight profit margins, rising ingredient costs, and high taxation.

The premier brewery and distillery insurance is designed to address the unique risks faced by independent brewers. This specialist product offers comprehensive cover to protect against unexpected events, losses, and claims, ensuring your business remains secure.

Our coverage includes:

• Public Liability Insurance: Protects against compensation claims from visitors or third parties injured on your premises or whose property is damaged by you or at your premises. Especially important if you are running tours, taprooms or tastings.
• Employers’ Liability Insurance: A legal requirement that protects against claims from employees injured at work.
• Property Cover: Includes protection for buildings, stock, and materials, as well as industry-specific risks like bursting barrels, theft of stock, and losses during transit or at trade events.
• Business Interruption Insurance: Covers loss of profit during disruptions caused by events like floods, fires, or major thefts, providing support until your business is back to normal.
• Goods in Transit Cover: Ensures your products are covered in case of any damage or loss during transport until they are safely delivered.
• Brewery Tours Cover: Extends public liability insurance to cover claims arising from tours, demonstrations, or open days at your premises.
• Deterioration of Stock Cover: Protects against losses caused by stock spoilage due to unforeseen circumstances.
• Loss of Licence Insurance: Covers losses if you lose your licence due to reasons beyond your control.
• Equipment Breakdown Cover: Provides protection for damages or losses resulting from equipment accidents, such as heating or computing systems.

With craft breweries navigating tight margins and unpredictable challenges, having tailored insurance is essential for long-term success. This comprehensive cover gives brewery owners peace of mind, allowing them to focus on creating exceptional products and growing their businesses.

If you’re ready to protect your brewery with insurance designed specifically for your needs, contact our experts today. With Premier Brewery and Distillery Insurance, you can safeguard your business and thrive into 2025 and beyond.

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