Craft beer’s reputation as a “luxury” and “aspirational” item makes a successful brew in London
The number of new breweries opening in London reached a new high in 2015, jumping 24 per cent from 29 new openings in 2014 to 36 last year due to its status as a "luxury" product.
The boom in new openings in London contrasts with a slight slowdown across the rest of the UK, which decreased by 10 per cent to 249 new openings in 2015, according to research by accountancy firm UHY Hacker Young.
Craft beer's status as a "luxury" product, often viewed as an "aspirational item" is one of the factors behind London's success, according to UHY Hacker Young.
"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," James Simmonds, partner at UHY Hacker Young, said. "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 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."
In London, craft brewers that opened last year include Long Arm Brewing based in Ealing, Hackney-based 40ft Brewery and Bullfinch Brewery based in Lambeth.
The success of the Camden Town Brewery led to their takeover by global drinks giant AB InBev in December 2015 in a deal rumoured to be worth £85m.