Amid waning beer consumption, there’s promise in Europe for indie brewers. While 30% of independent brewers in Europe and the UK anticipate their turnover will fall this year, 45% expect it to increase, according to the Independent Brewers of Europe (IBE).

In its inaugural report, the IBE surveyed the state of small breweries across the region, drawing on UK data provided by the Society of Independent Brewers & Associates (SIBA). Within this, the IBE analysed changing consumer patterns in the beer market and found there has been a steady drop in average consumption in the last five years.

In considering all beer – rather than just independent brewers – the IBE cited data from Brewers of Europe which estimated that overall beer production in Europe fell by 6% between 2019 and 2024. Looking at 2023-2024, the worst dip was in Spain, where average beer consumption dropped by 5.4%, followed by Switzerland at 3.9% and the UK at 3%. Greece, meanwhile, was the only country to see an increase in consumption at 7.9%.

Turning to independents, the IBE said dropping consumption could work in favour of smaller brewers, which can focus on the less but better alcohol trend. Promisingly, it revealed that the independent beer sector in Europe is predicted to grow significantly to 2029, according to forecasting by Technavio.

The IBE said there was room for growth in non-alcoholic beer. According to the report, 8% of brewers surveyed said non-alcoholic beers were already in their top three produced styles. This was especially the case among Swiss and Greek brewers. Elsewhere, data from Brewers of Europe showed a 25% overall increase in non-alcoholic beers since 2019. In the UK, the top three styles produced by independent brewers were pale ale, bitter and golden ale.

Alternative products

Outside of beer production there is interest in softs and other drinks, with 43% of brewers in Europe and the UK creating products other than beer. As suggested in the report, this reflects growth in consumer demand for low & no products. It also shows the pressure brewers feel to widen their income streams. These results did, however, vary significantly by country: 78% of brewers in Finland, for example, said they produced something other than beer. By comparison, this dropped to 48% in Germany.

Routes to market also vary by country. In Greece, for instance, almost half of beer produced by independent brewers goes into restaurants, reflecting its food-led culture. In the UK, on the other hand, only 2% of volume goes into restaurants, with a strong pub culture leading.

Overall, 45% of brewers sell to supermarkets, though this drops to 17% in the UK where access is more difficult. Here, 45% of volume goes to local pubs.

The one thing all breweries had in common was the expectation of challenging times, the IBE report concluded. “Despite variations across different countries, prices remain volatile and subject to sudden increases as supply is affected by the war in Ukraine and supply chain upheaval,” it said.

Similarly, all breweries across the UK and Europe cited energy prices, the dominance of global brewers, market access issues, taxation and ingredient prices as issues to contend with. While many factors differed, therefore, concern about financial health remained a through line for all.