Beer Report 2025

Overview

In The Morning Advertiser’s Beer Report 2025, which is sponsored by BrewDog and Greene King, there are positive moves for value in total beer sales in the on-trade and noticeable gains in volume and value sales for low & no beers, stout and world lager while other categories have suffered losses in both volume and value sales.

A lot can happen in a year, according to CGA by NIQ client director Nick Riley.

In this overview, Riley takes a look at the on-trade beer market and explains what the figures compiled by the insights expert mean for pubs and bars across the country…

Thinking back to this time 12 months ago and, more specifically, in trying to figure out how 2024 might stack up against 2023, the expectation was for ‘business-as-usual’ from a trend perspective.

Hot topic areas like cost-of-living, premiumisation, quality over quantity and moderation had continued to grow or persist over the few years prior without much let-up – and seemed to set the scene for what was to come.

That said, this time last year we didn’t realise an early election was on the horizon. But it was. And with it came a new landlord at No.10 and a proverbial ‘under new management’ sign hanging above the door.

This fuelled optimism for many. But, in the latter half of last year, as the Autumn Budget drew closer, we saw a drop in on-trade market confidence among operators, as the uncertainty of the announcement loomed, reaching its lowest level (20%) since October 2022 (8%) (Source: CGA by NIQ Business Confidence Survey).

We ended up therefore straddling the line between ‘business as usual’ and ‘unsure of what’s to come’. And so, with 2024 put to bed and the first few months of 2025 under our belts, how did those expectations around consumer trends play out? And what does the on-premise market, especially for beer look like now as we head into the second quarter of the year?

Well, despite those confidence levels falling further still off the back of the Budget and with mounting concerns about the measures that were scheduled to land in early April, over the course of the year, the trade showed some positive movement.

And, to December 2024 versus the previous year, there was net growth in total outlet numbers for the first time in several years. It wasn’t anything too fancy, but growth is growth is growth, after all.

We saw little hotbeds of activity, particularly in cities and urban centres, as working habits continued to normalise in a world that watched Covid edge further and further into the distance.

This was good news for high street pubs, increasing in number by 3.7%, with independent and managed operators fuelling growth across the pub sector, while leased sites saw their numbers fall.

Cost of living was certainly still a factor that drove and dictated consumer behaviour. While the proportion of consumers impacted by rising living costs eased slightly in 2024 (88% vs 90% in 2023), the majority still felt the pinch. Of those going out less often than usual (33%, December 2024), cost-of-living increases were the overwhelming driver of this, with more than 6 in 10 consumers citing it as a reason.

It was this continued squeeze on budgets and subsequent tightening of purse strings that saw overall visits to the on-trade, and consumption when out in it, fall.

Total visits were down 6% in 2024 versus the previous year (source: CGA by NIQ OPUS June 2024 vs 2023) and, as such, so were volumes across the board.

Total alcohol sales (including beer, cider, wine and spirits) were down almost 3% in the 12 months to February 2025. Fortunately for beer, the category ‘outperformed’ all others in seeing its volume sales take a smaller 2.2% dip.

This performance was largely driven by the general popularity of key categories like world lager and stout. However, beer, like cider also benefited from category-switching as consumers looked to maximise the bang for their buck and chose longer serves in pints and bottles that were seen to represent better value for money than categories like spirits, that saw far heavier declines.

BrewDog

Meanwhile, Ellon-based pub operator and brewer BrewDog believes there will be further improvements in the stout division.

BrewDog head of customer marketing Hannah Corker says: “Stout is a category with clear momentum. With more choice now available, including BrewDog Black Heart, which is attracting a younger, more affluent drinker, we expect this will only continue in throughout 2025 and beyond.

“Black Heart represents a significant opportunity to drive sales and grow margin for operators.

“In terms of ranging for the greatest profit, it’s important to avoid duplication wherever you can. You want to offer your guests the greatest breadth of range possible, with obvious ladders for premiumisation and clear roles for every beer on the bar.

“Don’t fall into the trap of pouring too many lagers that are close to being the same or having all your craft taps pouring similar IPAs. Think about using national craft to anchor the category before layering on top a New England IPA like Hazy Jane, or something local, and consider whether alcohol-free on draught could be something memorable that enhances the experience for your site.”

She also believes Session IPA is also “having its moment” and cites the brewer’s Wingman as “a high-quality product for the modern drinker, with casual and playful positioning and fantastic stand-out”.

Meanwhile, BrewDog is rolling out its Cold Beer Lager (3.4% ABV) to the on-trade following a successful launch into the off-trade.

Molson Coors

Molson Coors Beverage Company on-trade category management controller Stephen Groucott is hoping for good weather to help sell more beer at pubs.

He says: “Nothing drives people to beer gardens quite like a heatwave. When the sun is out, not only are people more likely to head to their local pub, but they also tend to spend longer soaking in the atmosphere with their favourite drinks.

“A recent survey we conducted found that British beer and cider drinkers are willing to sit outside and enjoy a drink, even in less-than-ideal conditions. Some 65% of these said they’d happily sit outside at 18 degrees, while a third (36%) would enjoy an alfresco pint at temperatures as low as 15 degrees.”

Groucott also talks about the low & no division. He says: “The category continues to evolve to meet the rising demand for low & no-alcohol options.

“Between 2016 and 2023, 2.2m more people have embraced moderation, with more than half (53%) of 18 to 34-year-olds, and 41% of Britain’s total adult population now trying to drink less alcohol. Some 51% of these low & no drinkers do so in pubs, bars and restaurants (source: Kantar).”