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Craft beer boom continues as number of new London microbreweries jumps 24% in a year

The capital continues to cement its position as the craft beer king of the UK as the number of new breweries opening jumped by 24% last year.

Research by chartered accountants UHY Hacker Young Group found that 36 new breweries opened in London last year compared to the 29 that opened in 2014, including the likes of the Long Arm Brewing Co in Ealing, Hackney-based 40ft Brewery and the Bullfinch Brewery in Lambeth.

The figures buck the UK-wide trend which saw the number of new breweries opening elsewhere slow by 10%, with 249 new microbreweries opening in 2015 compared to 278 the previous year.

James Simmonds, Partner at UHY, believes the perception of craft beer as an aspirational luxury product is driving demand.

He commented: “Craft beer has quickly become the drink of choice for pub-goers, especially in London which has cemented its position at the centre of the UK’s craft beer industry.

“It’s not surprising that London has such a large amount of new microbreweries, with the high numbers of young professionals working within the City.

“Because craft beer is viewed as a luxury good, customers are prepared to pay a higher price in comparison to other more commercially branded beers.

Many of these new breweries will hope to follow in the footsteps of some of London’s biggest craft beer success stories, such as The Camden Town Brewery who were recently acquired by global giants AB InBev at a rumoured £85m price tag.

James believes such breakout hits are inspiring more entrepreneurs to try their hand at brewing, and fuelling the capital’s thriving craft beer scene.

He added: “Many microbreweries within London have had such success in the last few years, that they have now become household names and this in turn has only spurred more entrepreneurs to try their hand at brewing.

“The popularity of craft beer has spread from its core followers in the “hipster” areas of Shoreditch and Hackney across the Capital and the rest of the UK.”