The consumer love affair with craft beer appears far from over, with industry experts predicting the next generation will be “drinking less, but better” — choosing quality products, such as local independent craft beers, over mainstream, mass-produced brews.
As the Millennial generation (currently aged 23 to 38) gives way to Generation Z (currently aged under 22), more people will be opting for quality, independent craft beer — that’s the prediction of the SIBA British Craft Report 2019, a study of the current beer market in the UK.
Report editor, Caroline Nodder, said: “All evidence points towards a shift in drinking habits towards quality, and away from the volume drinking of years gone by. It will come as welcome news to the independent brewers who produce flavoursome, interesting craft beers.
“There is also a need for creating an experience around beer, whether that is tasting flights of beers, or pairing beer with food, or running interesting one-off events or games tournaments. We’re seeing brewers be more adventurous in what they offer young beer drinkers, in response to the trend for drinking less, but better.”
As part of the report, the Society of Independent Brewers (SIBA) surveyed its own independent craft brewery members — it has around 750 across the UK — finding young people are clearly drinking less than they were a few years ago. Between the 2017 and 2019 surveys, the number of 25- to 34-year-olds drinking beer more regularly than once a week fell from 26% to 16%.
Nodder added: “Even allowing for seasonal variation — as the 2017 survey was done in August, when beer consumption is generally higher, compared to February for the 2019 survey — this does support other research which suggests millennials and the following generation, Generation Z, will drink alcohol less frequently and in lower volumes.”
Research from Mintel suggests younger consumers increasingly value and will seek out ‘genuine’ products with heritage, a hand-crafted nature, and trusted values — all areas where independent craft beer has a proven track record.
The Mintel Global New Products Database, from September 2018, also found that 45% of consumers were willing to pay more for craft and agreed that “craft is worth the extra money”.
Pairing beer with food has also become increasingly popular, particularly among young people, with consumer research SIBA commissioned in 2016 through M&C Allegra finding younger consumers are drinking more beer in restaurants than other generations.
The 25- to 34-year-olds scored strongly for drinking beer in restaurants, highlighting the greater interest among younger consumers in pairing beer with food, with 18- to 24-year-olds also scoring highly.
Independent craft brewers are taking notice of the trend, too, with brewers across the UK going to lengths to attract and keep younger customers. From targeting music and gig venues, to organising table-tennis and foosball tournaments, brewers are taking steps to further engage with young people and convert them into next generation of beer lovers.
Case studies
Signature Brew, East London
Signature Brew specialises in band collaboration beers, having brewed with Mastodon, alt-J, Mogwai, Frank Turner, Rodney P, Enter Shikari, and more than 20 other renowned artists.
Co-founder of the brewery, Tom Bott, said: “We’re on a mission to revolutionise the quality of beer at live music events by bringing an exciting core range (Roadie, Studio Pilsner, Backstage IPA and Nightliner) of music-inspired craft beers to the best bars, venues, and festivals in the UK and beyond.
“Through our critically acclaimed taproom and music venue in Haggerston, in East London, we’re bringing two passions together with the winning formula of brewery fresh beer, amazing live music, and a great space. ”
Tomos & Lilford Brewery, Llandow
This Welsh brewer has had a great deal of success with young wedding parties, who come and have a beer tasting to select their wedding beer, then spend the day brewing it alongside the expert team of brewers.
They also responded to the surge in veganism, particularly among younger drinkers, and have taken steps to become more sustainable, removing unnecessary use of animal products in the brewery, and switching to vegan- friendly ingredients. Some 75% of the brewery’s beers are now fully vegan.
Younger generations are more discerning about alcohol, many choose not to drink at all, and as such Tomos & Lilford have begun creating a range of lower-ABV products, including a 0% beer.
St Andrews Brewhouse, Norwich
From tap takeovers to food events which match food and beer, St Andrews Brewhouse is always looking for new ways to attract younger drinkers, including stocking newly popular sour beers and lower-alcohol products.
The company also launched an app, which has proved very popular with its younger customers, giving users points to collect rewards like money off goods and services at all of the City Pub sites. The app is also useful in offering an easier way for paying the bill as it ties in with the till system, allowing users to pay on the fly.
