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Fruit beer is a non-alcoholic beer made by fermenting fruits such as raspberries, strawberries, and others as an adjunct instead of grains. The low alcohol by volume (ABV) ratio of fruit beers is the main factor boosting its popularity since it can be consumed by all age groups. The sober revolution among the millennials is also a major factor that has nudged them to shift towards fruit beers. This millennial trend is mainly driven by the burgeoning wellness movement and increased focus on socializing, rather than alcohol consumption. Further, the consumers are opting for fruit beers as they are rich in vitamins, folic acid, minerals, and dietary fibres that, apart from tasting good is nutritious as well. This in turn has fuelled the fruit beer market growth.
Consumers are increasingly demanding flavourful innovative non-alcoholic beverages as they are willing to experiment and try out new flavors. Further, the alcohol drinkers in the world have started to shift towards low-alcoholic beverages such as fruit beer due to growing health consciousness. According to World Health Organization (WHO), the number of alcohol drinkers has decreased nearly by 5% since 2000, which in turn is expected to fuel its market.
Fruit beers have widely grown popular among the consumers, as they are considered to be less harmful to the body than conventional beers due to its zero alcohol content. Since the alcohol content in the fruit beers is negligible it can rarely cause any negative effect on the kidneys or liver, which stimulates its market growth. Along with this, the health beneficial properties offered by fruit beers coupled with its aromatic, fruity flavor, and texture has influenced the consumers to shift towards them.
Key Market Driver -
Negligible Alcohol Content with No Negative Health Effects
Key Market Restraint -
Negative Impact on Market due to Increasing Campaigns against Alcohol Consumption
The increasing number of campaigns about the adverse health effects due to alcohol consumption has resulted in consumers believing that fruit beers are harmful as well which is a major constraint in the market growth. Moreover, the wide presence of counterfeit products such as craft beer and low-alcohol beer, which are well-established markets are also expected to hinder the market growth.
The key companies operating in the global fruit beer market are Abita Brewing Company, Coolberg Beverages Private Limited, St Peter's Brewery Co Ltd., New Glarus Brewing Company, New Belgium Brewing Company, Allagash Brewing Company, Sapporo Breweries Ltd., Founders Brewing Company., Carlsberg Group, and Magic Hat Brewing Company.
The raspberry fruit flavor segment is expected to account for the major share as it is mostly preferred by the consumers due to its tart and sweet taste, coupled with its nutritional properties. The raspberries are naturally low in calories and also are a rich source of vitamins, fibre, and minerals. Further, its exceptional flavor and mouthfeel are also the factors that has drawn consumers' attention towards them; thereby, is expected to fuel its market growth.
The offline trade distribution channel is likely to be the major sales of fruit beer across the world. Various offline trade channels such as mass merchandisers and specialty stores sell the beers in comparatively lower cost as compared to on-trade channels. However, the on-trade sales channel such as pubs, bars, and lounges are witnessing traction from the consumers due to increasing socialization and its rising popularity among the millennial population is expected to aid its market growth.
Europe is anticipated to hold the major share in the market owing to the rise in the mindful drinking trend among the consumers. They nowadays prefer low-to-no alcoholic beverages due to the growing health and wellness trend and willingness to reduce alcohol intake due to its adverse health effects. Germany, Spain, and Russia are the major non-alcoholic beer consuming countries, which is mainly driven by the increasing new product development and healthier living trend. Thus, these factor are cumulatively expected to fuel the regional fruit beer market.
The growing inclination of consumers towards low-alcoholic beverages and healthy drinks in the Asia Pacific is expected to propel the regional market growth. The large consumer bases, rising health awareness, and improving economic conditions in India, China, Indonesia, and Malaysia are expected to support market growth. Further, the rising trend of socializing at bars, pubs, and restaurants coupled with an increasing number of restaurants and lounges in the region is expected to positively impact the market growth.
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