Beer Market Size, Share & COVID-19 Impact Analysis, By Type (Lager, Ale, Stouts, and Others), Packaging (Glass Bottle and Metal Can), Distribution Channel (On-trade and Off-trade), and Regional Forecast, 2021-2028

The global beer market size was USD 743.84 billion in 2020 and is projected to grow from USD 768.17 billion in 2021 to USD 989.48 billion in 2028 at a CAGR of 3.68% during the 2021-2028 period. The global impact of COVID-19 has been unprecedented and staggering, with beer witnessing a negative impact on demand across all regions amid the pandemic. Based on our analysis, the global market exhibited a lower growth of 2.89% in 2020 compared to the average year-on-year growth during 2017-2019. The rise in CAGR is attributable to this market’s demand and growth, returning to pre-pandemic levels once the pandemic is over.

Globally, beer holds a prominent share in the market as compared to other alcoholic beverages and is also gaining immense popularity among the millennials and Gen Z, owing to its various formulations, flavors, and taste offerings. Initially, flavored beer was majorly consumed in regions such as Europe and North America, but in recent times, its demand across the world is growing exponentially, thereby positively impacting the overall beer business. The emergence of new brewing technologies in developing economies has also impacted consumption patterns positively. Furthermore, consumers are now looking for innovative, varied, and flavored products in the market, which is augmenting the beer market growth.

Closure of Bars and Restaurants amid COVID-19 to Negatively Impact the Market

The COVID-19 pandemic and associated government restrictions related to the mobility of people have significantly affected alcohol consumption patterns and places of consumption. The markets in Italy, the U.K., and Colombia are mostly affected by the firm closure of retail outlets. Traditional centers of domestic tourism were also affected due to the pandemic. According to The Brewers of Europe, COVID-19 measures taken by governments in 2020 have had a disproportionate impact on bars and restaurants, reducing 42% of beer sales in Europe and weakening the positive contribution of the beer value chain to the economy. Some brewers have also faced legislative challenges, including a complete ban on the sale of alcohol in India and South Africa, and a ban on home brewing in Mexico. According to Beer Institute, the U.S. saw a drop of nearly USD 20 billion in retail sales of beer. Alcohol sales in bars and restaurants have also plummeted, severely hitting the industry, While, off-market sales such as e-commerce and retail stores have risen significantly, they are anticipated to help the market regain its usual pace in the forthcoming years.

LATEST TRENDS

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Rising Alcohol E-commerce Channel is a Prominent Trend Expected to Bolster Market Growth

COVID-19 promoted the value of mainstream e-commerce channels. Beer has usually been under-traded online, primarily due to the online channels offering low margins. However, this is to change as consumers continue to buy more groceries online and beer is also becoming a part of their shopping list. In particular, the direct-to-consumer (DTC) channel has expanded rapidly in this industry in 2021. It not only allows many small breweries to continue operating during the pandemic but is anticipated to thrive in the years to come. In response to this trend, the 12 leading beer, spirits, and wine companies formed the International Alliance for Responsible Drinking (IARD). 14 leading global and regional online retailers and e-commerce distribution platforms have come together in this initiative to safeguard and help ensure strong standards throughout the supply chain and customer. Online beer sales have the largest market share in countries such as Japan, the U.K., and the U.S. From a low base, online beer sales will grow rapidly providing new opportunities to the breweries in the future.

DRIVING FACTORS

Improving Disposable Income and Rising Westernization among Consumers Trigger Beer Consumption

The improving economic conditions and growing GDP (Gross Domestic Product) across developing regions such as the Asia Pacific and South America have resulted in improved per capita disposable incomes of consumers. The rise in disposable incomes of consumers is an important factor for the overall growth of the alcoholic beverage industry. According to leading Japanese beverage company Kirin Holdings Co., global beer consumption in 2019 increased for the second year in a row, supported by strong demand in Asia and Africa along with their economic growth. Global consumption increased by 0.5% to 189.05 million kiloliters, with people in the Asia and Africa regions spending more on beer, recording year-over-year increases of 0.7% and 5.2%, respectively. Thus, the rising acceptance of Westernized culture and increasing modernization among consumers have resulted in the increased consumption of the product in the global marketplace.

Increasing Prevalence of Alcohol Socialization among Consumers to Aid Market Growth

Alcohol historically holds an important role in social engagements and individuals’ desires. The trend is still growing, along with the demand for bold flavor-infused drinks in the market. Beer is one of the most famous alcoholic beverages which is gaining huge popularity among youngsters and the millennials, owing to its low ABV (Alcohol by Volume) and desired offerings of refreshing appeal to the consumers. The escalating diversified cultural groups of consumers and the occurrence of consumer social status are some of the major factors promoting beer drinking and driving its growth across the world.

RESTRAINING FACTORS

Restricted Provincial Acts for Marketing and Advertising Beer in Several Regions of the World Hamper Growth

The global alcohol market has been facing an inarguable constraint of marketing and advertising of alcoholic beverages to support & reinforce the healthy living of consumers. The government has banned the promotion of beers in most of the major markets across the world such as India, China, the U.K., and others. The restricted provincial acts for its marketing hinder the growth of the overall market in the upcoming years. However, manufacturers are promoting their products by using surrogate advertising which is used to promote alcoholic and other banned products in the disguise of another product in the market.

SEGMENTATION

By Type Analysis

Growing Consumer Inclination toward Premiumized Beers to Dominate the Lager Segment

Lager is inarguably the most famous type of beer throughout the world, due to its novel brewing process which offers a refreshing and crisp appeal to consumers. It is bottom-fermented and brewed with 5 to 11% of ABV at a lesser temperature typically between 7 to 13° C, which enhances the beer-drinking experience for the consumers. The growing trend of premium-sized beer among consumers has led to increased consumption of premium lagers in the market. The varying consumer preferences, improving living standards, and rising modernization are rapidly propelling the demand for premium beers, which is likely to promote larger consumption in the global marketplace.

Ales are made by top-fermenting yeast, compared to the yeast used in lager, the yeast in ale is more tolerant to alcohol. Ale is somewhat common among craft brewers because ale yeast can produce beer in just 7 days, which makes it more convenient for small breweries that may not have space for fermentation tanks to produce lager on a regular basis. In addition, the rising inclination of youngsters and millennials toward low-alcoholic beer is likely to boost the demand growth for ales and stouts in the coming future.

By Distribution Channel Analysis

Off-trade Beer Distribution Channel to Hold Major Share Owing to its Offerings at Low Prices

An off-trade distribution channel is one of the most efficient sales channels to serve beer across the globe. Consumers in several economies are price-conscious and do not spend money to drink beer in pubs, bars, and other on-trade platforms. The off-trade channel consists of a supermarket, wine shops, specialty stores, and others which offer products at a low cost as compared to on-trade channels. According to The Brewers of Europe, during the pandemic, Europe saw an 8% increase (20 million hectolitres) in off-trade beer sales. Nowadays, the increasing adoption of different beer-drinking practices in countries has resulted in the popularity of dine-out trends among consumers.

On the other hand, consumers in developed economies prefer to be entertained while consuming quick-serving alcohol; this is proliferating on-trade consumption across the world. Although, after the pandemic, the on-trade channel was negatively impacted it could experience significant improvement as restrictions are lifted in several countries.

By Packaging Analysis

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Glass Bottle is the Most Popular type for Packing Beer, Owing to their Rapid-Cooling Property

The glass bottle is the most popular packaging material across the world, owing to the low processing cost. The manufacturers also believe that the beer-drinking experience with glass bottles gives more premium appeals to the consumers compared to the metal can. Glass is reliable, sustainable, and 100% recyclable and reusable. These inherent characteristics are the reason for the continued demand for glass bottles and their renewed popularity in certain industries and regions of the world.

Consumers in some developed countries such as the U.S., U.K., Canada, and others are inclined towards canned beer. Canned beer is witnessing a growing demand in these countries, owing to its beneficial preserving properties such as effective & convenient containers for holding and limiting its exposure to flavor-damaging UV (Ultra-Violet) rays.

REGIONAL INSIGHTS

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Europe to Witness Significant Growth Due to its Consumer Beer Consumption Habits

Europe is expected to hold the largest share, and it stood at USD 257.00 billion in 2020. Beer plays an important role in all European countries and is an integral part of culture, heritage, and nutrition. The European Union is one of the main beer-producing regions in the world. According to The Brewers of Europe, the consumption in 2019 was 368,682 hectolitres, brewed by around 11,048 breweries spread all around Europe. In terms of structure, the European beer industry is a very diverse industry. It is mainly made up of small and medium-sized companies, including microbreweries and breweries operating at local, regional or national levels, including major European breweries that are world leaders in their fields. The emergence of new micro and small breweries in the past few years is a significant sign of the industry's innovative potential. The overall alcohol content and harmful use of alcohol in Europe have declined, as some consumers seem to switch to low-alcohol products such as beer and low-alcohol and non-alcoholic varieties in this category. Thus, these consumer preferences are anticipated to positively support the growth of the European market.

Asia Pacific is the second-largest market. The region has massive potential for beer manufacturers and their products across the world. The regional market is led by countries such as India, China, Australia, and others where consumers are increasingly seeking to drink beer. According to the Anheuser-Busch InBev company, the Asia Pacific region is the largest growing region in this industry and will account for 53% of the growth between 2014 and 2025.  The refreshing flavor profiles and premium alcoholic appeal are some of the key factors for the acceptance of beer in their busy and hectic schedules. Consumers are accepting Westernized patterns and favoring dine-out trends, which are proliferating the growth of on-trade beer channels in the region.

North America held the third position in the overall market. The region has the major marketplaces in the world with immense potential for beer business to grow, owing to the high consumer association with beer and growing number of breweries. According to the Alcohol and Tobacco Tax and Trade Bureau (TTB), there were 6,406 reported brewery locations in the U.S. in 2020. In 2020, the U.S. brewing industry sold approximately USD 100 billion worth of malt and beverages to the U.S. consumers through retail beer shops. The growing popularity of beer in the region is directly proportional to the increasing demand from millennials and young working population, owing to the changing taste preferences and varied beer drinking experience. The evolving consumer preferences and growing demand for low ABV beer are expected to trigger the growth of the ale type in the upcoming years.

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South America is the fastest growing market, owing to the rapid urbanization and increasing disposable incomes in the region. Global companies like AB InBev are also opting customer-centric strategy by introducing innovative products to the market. For instance, in 2020, AB InBev launched Brahma Duplo Malte lager. It brings a new pure malt experience to consumers by blending Pilsner malt with Munich malt, resulting in an exceptional taste.

KEY INDUSTRY PLAYERS

Global Beer Market is Highly Consolidated Due to the Strong Presence of Key Giants in the Market

Over the past few years, the wave of consolidation has transformed the global market, leading to new product launches and mergers & acquisitions between multinational brewing companies. Anheuser-Busch InBev is a major player in the global industry. The increased focus on achieving production efficiency, the ability to understand market needs & trends, and strong distribution networks are some of the major factors that the manufacturers are pondering. Heineken N.V., China Resources Breweries, Carlsberg A/S, and Molson Coors Beverage Company are some of the other key players in the market.

LIST OF KEY COMPANIES PROFILED:

• Anheuser-Busch InBev (Leuven, Belgium)


• Heineken N.V. (Amsterdam, Netherlands)


• China Resources Breweries (Beijing, China)


• Carlsberg A/S (Copenhagen, Denmark)


• Diageo Plc (London, U.K.)


• Molson Coors Beverage Company (Illinois, U.S.)


• Boston Beer Company (Massachusetts, U.S.)


• Asahi Group Holdings Ltd (Tokyo, Japan)


• Kirin Holdings Co. Ltd (Tokyo, Japan)


• Beijing Yanjing Beer Group Corporation (Beijing, China)

KEY INDUSTRY DEVELOPMENTS:

• August 2021 –Molson Coors Beverage Co., a Canadian multinational brewing company, announced the launch of its award-winning hazy and juicy pale ale, Moon Haze in the U.S.


• July 2021 - Heineken NV, a Dutch multinational brewing company, has announced that following the annual general meeting of United Breweries Limited (UBL), it has acquired control of UBL in India.

REPORT COVERAGE

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The global market report provides qualitative and quantitative insights into this market. It also offers a detailed analysis of its utility, distribution channels, availability of raw materials, types, market size, and growth rate for all possible segments in the market. Along with this, the report provides an elaborative analysis of the market dynamics and competitive landscape. Various key insights presented in the report are an overview of related markets, recent industry developments such as mergers & acquisitions, the regulatory scenario in critical countries, and global beer industry trends.

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