The decline continues in the UK ales and stouts market with a 6% volume drop to 1.4 billion litres and value down 3% to £5.5 billion forecasted in 2008 - however, this masks a cask and bottled ale revival.

Pub closures, declining pub visits, reduced consumption and an increasing emphasis on food-led sales are creating a challenging on-trade environment for ales and stouts.

Key themes of the report:

• Although dominant with a 70% market share of ales and stouts, the on-trade has lost 4% to retail stores over the last two years as customers turn to in-home entertainment.
• Sales may fall post-ban but removing smoke from pubs could also reawaken customers’ taste buds and bring new custom, offering greater opportunities for ales and stouts.
• Consumer demand for products with provenance and heritage is driving growth among regional brewers, and inspiring the revival of traditional brews and new products.
• Studies indicate ‘beer bellies’ are a myth and brewers could perhaps do more to emphasise ales’ natural ingredients, tapping into rising demand for healthier, less artificial drinks