New data from real time market intelligence firm Oxford Partnership revealed draught beer has seen a 5.9% drop in volume sales over the past four weeks.
The downturn was driven largely by falls in Core Lager (down 7.1%), World (down 4%) and Lager (down 4.3%).
However, World Lager bucked the trend with a 7.2% increase, while stout continued to surge with a 16.4% uptick in sales, becoming a firm favourite among younger demographics, particularly Gen Z and female consumers.
At the same time, consumer engagement was strong last month, with footfall levels holding steady and dwell time increasing by 2.3%.
It reflected a growing preference for longer, more immersive hospitality experiences, Oxford Partnership asserted.
Structural challenges
Consumer spending also continued to rise, with credit card transactions up 2.6% in pubs, bars, clubs, and restaurants, according to the latest Barclaycard data.
Meanwhile, Oxford Partnership’s Market Watch Report showed a 4.3% rise in average spend per head on drinks and a 3.1% increase on food, reinforcing the ongoing movement towards premiumisation.
However, despite positive consumer engagement, the sector continues to face structural challenges.
Compared to this time last year, 1,200 fewer outlets were trading last month, equating to 3.3 closures per day.
It comes as data from the British Beer & Pub Association (BBPA) estimated six sites a week closed throughout 2024.
Though 330 new venues have already opened in 2025, indicating a potential turnaround in trading conditions, the data specialists said.
Changing habits
Furthermore, opening hours saw a 1.7% downturn, which reflected both cost-saving measures and seasonal shifts in demand, according to the report.
Oxford Partnership urged operators to stay “agile”, responding to shifting consumer preferences, economic pressures, and evolving market dynamics to maintain momentum in 2025.
As businesses adapt to changing consumer habits, strategic operational decisions will be crucial in maintaining profitability, it added.
Oxford Partnership CEO Alison Jordan said: “While the industry continues to navigate challenges, there are clear indicators of resilience and growth.
“Consumers remain eager to socialise, with longer visits and increased spending reinforcing hospitality’s role as a key pillar of British culture.
“The rise of stout, the premiumisation trend, and the steady flow of new venues opening suggest an evolving market full of opportunities.
“If operators continue to adapt and innovate, 2025 could be a year of renewed strength for the sector.”
