Microbrewers enjoyed growth in sales of almost 11 per cent in 2007, according to the Local Beer Report 2008 published this week by the Society of Independent Brewers (SIBA).
The report shows that despite a challenging beer market SIBA members have hit annual retail sales of £320m.
The report says: "Against the background of the most challenging year for beer retailing for decades, the continued strong growth of demand for local beer is spectacular. Counter to the trends of a market which saw consumption decline across many beer types, the average volume growth in sales of local beer was 10.7 per cent."
SIBA chief executive Julian Grocock said: "There is an accelerating consumer movement towards principled and ethical purchasing, and buying local is taking precedence even over Fairtrade or organic.
"It shows how in tune local brewers are with current market trends, and how well placed they are to exploit market opportunities."
The report also points out high levels of achievement by SIBA members - the Champion Beer of Britain came from a society member - and SIBA members also won five out of the 12 categories in the International Beer Challenge.
This is the sixth annual report on the industry from SIBA, which represents more than 400 brewers ranging from long-established regional companies to small businesses supplying local pubs, off-licences and farmers' markets.
Grocock also praised the positive impact of Progressive Beer Duty (PBD) on the market. He said he was able to report "judicious investment in the fabric of businesses, including further employment creation", thanks to the tax break.
PBD has come under fire in the past from larger regional brewers for allegedly fuelling huge discounting by microbrewers.