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Insights

Challenges for Breweries

By

Fred Davies

There are global challenges breweries are facing right now that are affecting the running costs of their business.

Running a brewery has always been hard work. The last few years have made it harder. Here's what we're seeing weigh on brewers globally - and why it matters.

Energy costs and stability. Rising and volatile energy prices hit brewing particularly hard. Production is energy-intensive, and inflation has pushed operating costs up across the board.

Water use. Every pint takes roughly 5–7 pints of water to produce. With water regulation tightening and some regions facing shortages, this is moving from "nice to manage" to "have to manage."

Packaging rules. Extended producer responsibility, deposit return schemes and packaging regulation are all now in scope - and the detail matters.

Shifting consumer habits. Drinking trends are changing fast. Low and no-alcohol, premiumisation, and growing demand for sustainable brands mean brewers need a sharper read on where their product focus should be.

Climate pressure on supply chains. Longer droughts, lower yields and rising prices for barley, hops and other crops are no longer a future risk - they're a live one.

Challenging? Yes. Insurmountable? No. See our companion piece on the opportunities these same pressures are creating.

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