Small businesses across the UK have felt the effects of COVID-19, and microbreweries are no different. Many breweries have had to put their staff on furlough and, sadly, in some cases have had to make redundancies or close.
However, according to the Beer Global Market Report 2020-30: COVID-19 Impact and Recovery Report, the industry as a whole across the world is still set to see growth this year, albeit at a reduced rate. The global beer (breweries) market is expected to increase from $214.9 billion in 2019 to $216.5 billion this year at a compound annual growth rate (CAGR) of 0.8%. The report attributes the low levels of increment to the economic downturn worldwide, as a result of the COVID-19 outbreak and action taken to reduce the number of cases.
On the positive side, the report says the global market is expected to recover and grow at a CAGR of 5% from 2021, reaching $248.8 billion by 2023. Looking ahead to next year, there are trends that microbreweries can tap into to help boost sales and connect with new audiences. Here are three we’ve found to wet your whistle:
Showing lager some love
Lagers have had a bit of unsavoury reputation in the beer world, often not being seen as a ‘true’ craft brew. While IPAs have continued to be a widespread choice with brewers and customers alike, they’re not to everyone’s tastes due to their hoppy nature, which some people may find a little too bitter.
Lager is one of the most well-loved kinds of beer in pubs and across the world, and customers who are dipping their toes into the craft beer market in a bid to support small or local businesses may prefer to opt for something that feels recognisable. It is therefore expected that more microbreweries will delve into the lager market in 2021 to capture this audience.
Life is rosy
Rosé wine has long been a popular drink. Inspired by the pink wine, for beer and wine lovers there is a hybrid of the two – rosé beer. While it is not a totally new product – Dogfish Head Brewery in Delaware in the US has been brewing rosé beers since the 1990s – more breweries have been experimenting with rosy brews. To produce this pink drink, grapes are used as a fermentable.
With fruity, rosé beer growing in popularity, especially with consumers in the warmer months, it is expected that more microbreweries will be tapping into the trend in 2021.
Leave out the alcohol
The Society of Independent Brewers’ (SIBA) British Craft Beer Report, which was published in March, found that sales of non-alcoholic or low alcohol beer was up by 30% since 2016. It also found that 23% of 18-to-24-year-olds are now teetotal, an increase of 6% from the previous 12 months.
It’s no surprise then that no or low alcohol options have been popping up across the market. As consumers continue to look for booze-free tipples that provide a different experience from regular soft drinks, the ‘nolo’ market (as it has been dubbed) is set to barrel along into 2021.
If you’re a microbrewery and are brewing more beer to get ready for the Christmas and New Year period or are planning on launching new brews in 2021, your insurance policy may need updating to make sure your business is protected. At The Insurance Centre, we can help to cover your brewery for both stock and equipment, as well as tours and delivery services. Get in touch today to speak to one of our specialist advisors.
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