GLOBAL CRAFT BEER MARKET (2024 - 2030)

The Global Craft Beer Market was valued at USD 270.38 Billion in 2023 and is projected to reach a market size of USD 568.47 Billion by the end of 2030. Over the forecast period of 2024-2030, the market is projected to grow at a CAGR of 11.2%.

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Beer is the world's oldest and most extensively consumed alcoholic beverage. It contains iron, calcium, vitamin B, and fiber if taken in moderation. Beer brewing technology advancements have resulted in the introduction of a diverse range of goods on the market. The product is one of the most popular variations on the market and has grown in popularity in recent years. Due to the ongoing modification and improvement in taste, as well as the availability of different tasty options in the region, the industry is experiencing decent growth, particularly in North America. Because consumers are continually looking for new drinks, the advent of delicious options has increased the consumption of such beverages.

The craft beer business is expanding rapidly, thanks to several major factors. Consumer preference for distinctive and artisanal brews, increased demand for various beer flavors, and a shift towards supporting local and independent breweries are major drivers in this sector. Craft beer provides numerous prospects for innovation, expansion, and market penetration.

Key Market Insights:

Major market participants are investing heavily in R&D to extend their product lines, which will drive future expansion in the craft beer market. Furthermore, market participants are releasing new products, negotiating contracts, acquiring companies, raising investments, and collaborating with other organizations, among other key market moves, to expand their presence. Craft beer companies must supply affordable products to expand and thrive in a market that is becoming more competitive and growing. Manufacturing locally to reduce operational costs is one of the primary business strategies adopted by craft beer makers to serve customers and expand the market sector. 

Low-alcohol-by-volume drinks are becoming more and more popular, and as a result, sales of zero- and low-alcohol beers are increasing due to the increased interest of health-conscious consumers and a greater selection of the newest, better-tasting varieties. Low-alcohol beers and ciders are becoming more popular, which is linked to consumers' increased willingness to try new drinks and their increased awareness of alcohol intake. The UK is seeing a shift in the tendency towards lower alcohol drinks by volume, as seen by the record-high sales of supermarkets and off-licenses. 

Global Craft Beer Market Drivers:

The rise in consumer demand for unique and variety of flavors in the beer is propelling the global craft beer market.

The craft beer business is driven by an increased consumer demand for unique and different flavors. Craft brewers are known for experimenting with ingredients, brewing techniques, and styles, providing consumers with a diverse range of unique and inventive beers. This high demand indicates a shift away from typical, mass-produced lagers and towards craft beers that offer a more complex and personalized tasting experience.

The market's introduction of many unique and strong craft beers, such as fruit & spice, honey-flavored, sour, malty & sweet, and tart & funky flavors, has piqued consumers' interest. Floral flavors like chamomile, elderflower, and lavender balance complement flavors while adding a subtle taste and smoothness. Beers with unusual flavors and fresh ingredients are increasingly appealing to customers worldwide. As a result, market growth is likely to accelerate in the approaching years.

Rising health consciousness among beer consumers is also driving the global craft beer market growth.

The craft beer business is being propelled by a global trend towards health and wellness. Craft beer is becoming more popular among health-conscious customers due to its reputation as a more natural and nutritious beverage. Craft brewers frequently employ high-quality, locally sourced ingredients, eliminate additives and preservatives, and use traditional brewing methods, which aligns with customers' increased need for transparency and sustainability in their food and beverage choices.

The increasing number of craft, microbreweries, and small independent breweries is another important market driver.

Craft beer is acquiring a solid presence in the market, with an increasing number of independent microbreweries cropping up to offer a variety of goods. The growing popularity of craft beer among consumers, particularly the younger generation, is recognized as the most crucial growth factor. The rising socializing patterns, particularly with millennials, have increased their visits to brewpubs and taprooms. This has also increased by the establishment of small and independent brewers. As a result, breweries are improving their beer production to meet rising consumer demand. 

Global Craft Beer Market Restraints and Challenges:

The availability and popularity of other alcoholic beverages may hinder the market growth of the global craft beer market.

Even though people drink alcohol all over the world, the growth of the market is being hampered by the abundance of other alcoholic craft beverages including wine, gin, rum, and whisky. Customers' propensity for these craft spirits has grown as a result of their openness to trying out new craft beverage varieties, which has led to an increase in consumption. In addition, other alcoholic craft beverages are more varied than this one and go through multiple distillation processes to produce high-grade spirits. In addition, the market's expansion is being hindered by the wide variety of flavors available in alcoholic craft beverages, including grapefruit, plum, raspberry, lemon, and others.

The rising government taxation and regulations on the alcohol industry may also affect the growth of this market negatively.

The craft beer sector may be constrained by several laws including tax laws. Regional differences in regulations can result in onerous compliance requirements, and taxes can significantly raise the cost of production. This may make it more difficult for smaller, more independent craft breweries to grow and compete on price with bigger and more established brands.

Global Craft Beer Market Opportunities:

Through global expansion, the craft beer business offers enormous potential opportunities. Craft breweries can expand into new areas and diversify their customer base by exploiting international trade agreements and e-commerce platforms. Craft brewers now have greater access to a global audience, allowing them to showcase their distinctive offers to a larger customer group. Collaborations between craft breweries and brewpubs are a boon to the craft beer business. These collaborations give brewers a place to experiment, develop one-of-a-kind and limited-edition beers, and attract customers searching for distinctive and immersive beer experiences. Brewpubs are ideal for showcasing craft beer innovation and encouraging direct consumer contact, which will help fuel the market's expansion.

GLOBAL CRAFT BEER  MARKET REPORT COVERAGE:

Segmentation Analysis

Global Craft Beer Market - By Type:

• Ale
• Lager
• Pilsner
• Others

The Lager segments dominates this segment over others. Brewers are experimenting with and introducing new varieties such as light lager and pales to their product portfolios to divert customers' attention away from mainstream brands, resulting in significant market growth for the craft lager segment. Because of their light and malty flavors, craft lagers are becoming increasingly popular among consumers. The demand for Craft lager has increased as brewers prefer products with longer shelf life and less expensive ingredients. Lagers accounted for 15.8% of the 1764 entries in nearly 18 different genres in the Great American Beer Festival (GABF), according to the Brewers Association.

Global Craft Beer Market - By Distribution Channel:

• On-Trade
• Off-Trade

The off-trade segment dominates the global craft beer market segmented by distribution channel. Craft beer sales through off-trade channels have expanded in recent years because of their extensive availability in various flavors and varieties. Consumers prefer to buy from off-trade channels such as supermarkets and convenience stores since they offer pre-chilled, convenient bottles or cans. According to Martson's Beer Company's off-trade beer report, roughly 35% of lager and 16% of ale customers prefer to purchase this alcoholic beverage from such off-trade sources. Furthermore, people nowadays prefer drinking at home rather than in bars because it is more comfortable, relaxed, and cost-effective.

Global Craft Beer Market - By Ingredients:

• Malt
• Yeast
• Enzymes
• Hops
• Others

The malt dominates the global craft beer market segmented by ingredients. This list contains the numerous elements used to turn raw materials into beer. The ingredients employed in the procedure determine the final flavor of the craft beer. The importance of malt originates from its function in defining the flavor and character of beer. As craft brewers proliferate around the world, the innovative use of malt continues to drive the sector, tempting beer drinkers with a diverse range of flavors and textures.

Global Craft Beer Market - By Region:

• North America
• Asia-Pacific
• Europe
• South America
• Middle East and Africa

North America holds the highest market share and dominates the global craft beer market. However, Asia-Pacific is the fastest-growing market. Craft beer's popularity in the North American market has grown as the number of microbreweries has expanded. Craft beer demand in the United States has increased considerably as the number of brewers has increased. Local events, promotions, and social media have all helped to drive the artisan movement. Craft beer is more enticing to millennials in the area than regular beer because of its nuanced flavor.

The craft beer market in Europe has the second-largest market share. Because of the growing need for low-alcohol craft beers in the region, as well as the growing desire for craft beers among the young population. Craft beer has risen significantly, particularly in India and China. Because of rising citizen incomes, rapid urbanization, and the rise of beer companies, the market has grown dramatically in recent years. Furthermore, the Chinese craft beer industry had the highest market share, while the Indian craft beer market was the fastest expanding in the Asia-Pacific area.

COVID-19 Impact Analysis on the Global Craft Beer Market:

The COVID-19 pandemic impacted the global craft beer market negatively because of the lockdown. Consumers see beer as a soothing beverage. However, governments have closed numerous pubs, restaurants, taprooms, and bars due to the global COVID-19 pandemic epidemic to maintain social distance rules. This has had a negative impact on the global market. According to Brewers Association research, total brewery sales in the United States fell by 30.5% in May compared to the previous year. As their year-on-year (YoY) sales decreased in April, nearly 89% of brewing companies either stopped or delayed production. The bulk of craft breweries' on-site sales suffered as 87% of brewpubs were shuttered owing to lockdown enforcement in the United States, as well as the cancellation of orders and events. However, with the lifting of lockdown, the market is bouncing back again.

Latest Trends/ Developments:

The industry is growing as new breweries open in every corner of the world. Brewers are producing new goods to meet increased customer demand, introducing inventive styles of craft brew and lager to stay ahead of competitors. CBD, a non-psychoactive component of the cannabis plant, has been infused into the product. Breweries such as Vermont's The Long Trail Brewing Company have begun a limited-edition line-up of IPAs and APAs brewed using hemp oil. Customers are turning to CBD-infused beers because they are low in calories and the CBD lessens the bitter taste of hops in beer, while the hops flavor is balanced by citrus notes from terpenes.

One example of craft beer market expansion and innovation is The Modelo Company announcing the launch of new products in March 2022. They expanded and added new beers including flavor-forward Cheladas and other test offerings, such as Modelo Oro, a premium light beer. Among the new products are Modelo Chelada Naranja Picosa, Modelo Chelada Limón y Sal, Modelo Oro, Modelo Cantarito-Style Cerveza, and Modelo Ranch Water.

Key Players:

• Bira 91 (India)
• Davide Campari-Milano N.V. (Netherlands)
• Diageo PLC (U.K.)
• Halewood International Limited (U.K.)
• Asahi Group Holdings, Ltd. (Japan)
• Accolade Wines (Australia)
• Bacardi Limited (Bermuda)
• Mike's Hard Lemonade Co. (U.S.)
• Castel Group (France)
• Suntory Holdings Limited (Japan)