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Craft Beer Market Size, Share & COVID-19 Impact Analysis, By Type (Ale, Lager, Pilsner, and Others), Distribution Channel (On-Trade and Off-Trade), and Regional Forecast, 2020 – 2027

Region : Global | Format: PDF | Report ID: FBI100736

 

KEY MARKET INSIGHTS

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The global craft beer market size stood at USD 89.25 billion in 2019 and is projected to reach USD 190.66 billion by the end of 2027, exhibiting a CAGR of 10.4% in the forecast period (2020-2027).

COVID-19 Cover

This report covers COVID-19 impact analysis on Craft Beer Market

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Beer has always been the oldest and most widely consumed alcoholic beverage around the world and has several health benefits if consumed moderately; it contains iron, calcium, vitamin B, and fiber. Advancements in beer brewing technologies have resulted in the emergence of wide-ranging beer in the market. Craft beer is one of the most consumed variants in the spectrum and has gained immense popularity in recent years. The market is witnessing decent growth, especially in North America due to the constant modification and improvement in taste, along with the availability of numerous flavorful options in the region. The emergence of unique flavors has changed the consumption pattern of consumers, while also satisfying the need for innovative drinks.


Declined Craft Beer Consumption Amid COVID-19


Beer is regarded as a relaxing drink among consumers. However, the global COVID-19 pandemic outbreak has resulted in the closure of various pubs, restaurants, taprooms, and bars by the governments to maintain social distancing norms. This has negatively impacted the global market. According to a study by the Brewers Association, the total brewery sales in the U.S. went down by 30.5% in May compared to the prior year. Nearly 89% of the brewing companies, either had stopped or slowed down their production, as their year-on-year (YoY) sales had declined in April. The majority of the craft breweries on-site sales were adversely affected as 87% of the brewpubs were closed due to the lockdown enforcement in the U.S., along with the cancellation of orders and events by the distributors. However, the market is expected to recover in the coming months due to the reopening of taprooms and ease of production.


LATEST TRENDS


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Growing Consumer Inclination towards Cannabidiol (CBD) Infused Beverages to Favor Market


The industry is expanding as new breweries are opening up across every region in the world. Brewers are developing new products to serve the increasing consumer demand, therefore, introducing creative styles of craft ale and lager to remain at the front foot among other rivals. The innovation of CBD, the non-psychoactive component of the cannabis plant is infused in beers. Breweries like The Long Trail Brewing Company in Vermont has started a limited edition line-up of IPAs and APAs, brewed with hemp oil. The consumers are turning towards CBD-infused beers as they have relatively low-calorie count and it reduces the bitter taste of hops, while the hops flavor is complemented by the citrus notes of terpenes.


DRIVING FACTORS


Emergence of Flavorful and Strong Beers to Augment Industry Growth


The emergence of numerous varieties of strong and flavorful craft beers in the market, such as honey-flavored, fruit & spice, sour, tart & funky, and malty & sweet flavors has drawn consumers’ attention. The floral flavors such as chamomile, lavender, and elderflower add a subtle taste and smooth quality to the beers, along with balancing and complementing the flavors. The inclusion of new ingredients and innovative flavors in beers have increasingly appealed to the consumers worldwide.


Rising Number of Craft and Microbreweries to Aid Growth


The increasing socializing trends, especially among the millennials have increased the visits to the taprooms and brewpubs. This has also led to an increase in the development of small and independent breweries. Thus, breweries are improving its beer production to cater to the surging demand of consumers. According to the Brewers Association, small and independent brewers in the U.S. produced 26.3 million barrels of beer in 2019, with volume growth of 4% than the prior year. The craft production in 2019 accounted for 25.2% of the beer retail market in the U.S., which has supported the overall market growth.


RESTRAINING FACTORS


Availability of Other Alcoholic Craft Beverages to Hamper Growth


Though the craft beer is widely consumed worldwide, the availability of numerous other alcoholic craft beverages such as gin, rum, whiskey, and wine are hampering the market growth. The growing inclination of consumers towards such craft spirits owing to their willingness to try out new variants in craft beverages has increased their consumption. Furthermore, the other alcoholic craft beverages are more diverse than the beer and are undergoing several distillation techniques to obtain high-quality liquor. Along with this, the availability of numerous flavors in alcoholic craft beverages such as grapefruit, plum, raspberry, lemon, and others are impeding the craft beer market growth.


SEGMENTATION


By Type Analysis


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Craft Lager to Lead the Craft Beer Industry


The craft lager segment is witnessing significant growth in the market owing to the brewers trying and adding new styles like light lager and pales to their product portfolios to draw consumers' attention from mainstream brands. The consumers are increasingly demanding craft lagers due to their light and malty taste. The brewers are shifting towards beers with longer shelf lives and less expensive ingredients, which has increased the craft lager production. According to the Brewers Association, in the Great American Beer Festival (GABF) 2019, lagers made up 1764 entries in nearly 18 different styles which constitute 15.8% of total beers. Followed by lager, ale is holding the major braft beer market share.


By Distribution Channel Analysis


Off-trade sales to Dominate the Trade Distribution


The sales of craft beer through off-trade channels has increased in recent years owing to their wide availability in different flavors and types. The off-trade channels such as supermarkets and convenience stores are usually preferred by consumers to buy as they offer pre-chilled, convenient bottles, or cans. According to the Marston Beer Company’s off-trade beer report 2019, nearly 16% ale and 35% lager drinkers prefer purchasing beers from these off-trade channels. Further, consumers nowadays, prefer drinking at home rather than in pubs as it is more relaxing, comfortable, and less expensive. According to a survey by Stonegate Pub Company and Molson Coors in 2018, 87% of the consumers preferred comfortable drinking at homes, which has positively impacted the segment growth.


REGIONAL INSIGHTS


Asia Pacific Craft Beer Market Size, 2019 (USD Billion)

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The growing demand for unique flavors, coupled with the rapid urbanization and increasing disposable incomes, has positively impacted the consumption growth in the Asia Pacific. Currently, the Asia Pacific market is holding the largest share and it is anticipated to grow at a CAGR of 10.50% during the forecast period. China and India are likely to have major sales. Over the last five years, the China craft beer industry has grown 250%, with more than 1000 craft breweries functioning in the country, which has contributed to the regional market growth.


Followed by Asia Pacific, North America is projected to hold the second-largest market share throughout the forecast period. The rapid expansion of craft breweries in the U.S. is a major factor contributing to regional market growth. Its surging popularity is mainly due to the increasing number of microbreweries and its large volumetric production.


In Europe, the growing demand for premium beers has supported the market growth, coupled with the increase in consumption of craft ale. The Middle East & Africa is expected to witness strong growth during the projected period due to high demand in the growing urban centers in the region.


KEY INDUSTRY PLAYERS


The Boston Beer Company is Focused on Base Expansion to Reinforce its Standpoint


The global craft beer market is consolidated with the presence of key giants worldwide. Companies such as The Boston Beer Company, Heineken NV, Constellation Brands, Inc., and Anheuser-Busch InBev, are actively focusing on new product launches, incorporating new ingredients, and process improvements for their existing beverages. The players are also focusing on strategic mergers to expand their business and fortify their market presence. For instance, in May 2019, The Boston Beer Company and Dogfish Head Brewery signed a definitive merger agreement to expand their opportunities for future developments.


LIST OF KEY COMPANIES PROFILED:



  • D.G. Yuengling & Son, Inc. (Pennsylvania, U.S.)

  • Heineken N.V. (Amsterdam, Netherlands)

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

  • Constellation Brands, Inc. (New York, U.S.)

  • Anheuser-Busch InBev (Leuven, Belgium)

  • New Belgium Brewing Co. (Colorado, U.S.)

  • Sierra Nevada Brewing Co. (California, U.S.)

  • Duvel Moortgat NV (Puurs, Belgium)

  • Bell's Brewery, Inc. (Michigan, U.S.)

  • Dogfish Head Craft Brewery Inc. (Delaware, U.S.)


KEY INDUSTRY DEVELOPMENTS:



  • December 2019: White Owl Brewery has launched a strong craft beer called Spike, which is a handcrafted German Weizenbock with banana and clove flavor. Spike is a first in the segment in India and this variant has been launched in Mumbai, Pune, Bengaluru, Goa, and Delhi.

  • January 2019: Genius Brewing Ltd. launched a 3% ABV craft lager in the U.K. to promote ‘smart drinking’ as it has only 79 calories per can.

  • June 2018: United Breweries Ltd.’s brand, Kingfisher has collaborated with U.K.-based craft brewer-Freedom Brewery Ltd. to create pale ale for Indian consumers which will initially be exclusively available within the Indian Restaurant Channel.


REPORT COVERAGE


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The market research report provides qualitative and quantitative insights into the market. It also offers a detailed craft beer market analysis with size and growth rate for all possible market segments. 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 key craft beer industry trends.


Report Scope & Segmentation














































  ATTRIBUTE


  DETAILS

Study Period



  2016-2027



Base Year



  2019



Forecast Period



 2020-2027



Historical Period



  2016-2018



Unit



  Value (USD Billion)



Segmentation



By Type, Distribution Channel, and Geography



By Type


 




  • Ale

  • Lager

  • Pilsner

  • Others (Wheat Beer, Specialty Beer)



By Distribution Channel


 




  • On-Trade

  • Off-Trade



By Geography


 




  • North America

    • By Type

    • By Distribution Channel

    • By Country

      • USA

        • By Type



      • Canada

        • By Type



      • Mexico

        • By Type









  • Europe

    • By Type

    • By Distribution Channel

    • By Country

      • Germany

        • By Type



      • France

        • By Type



      • Italy

        • By Type



      • Russia

        • By Type



      • The U.K.

        • By Type



      • Spain

        • By Type



      • Rest of Europe

        • By Type









  • Asia Pacific

    • By Type

    • By Distribution Channel

    • By Country

      • China

        • By Type



      • Japan

        • By Type



      • Australia

        • By Type



      • India

        • By Type



      • Rest of Asia Pacific

        • By Type









  • South America

    • By Type

    • By Distribution Channel

    • By Country

      • Colombia

        • By Type



      • Brazil

        • By Type



      • Chile

        • By Type













      • Rest of South America

        • By Type









  • Middle East & Africa

    • By Type

    • By Distribution Channel

    • By Country

      • South Africa

        • By Type



      • Gabon

        • By Type



      • Rest of the Middle East & Africa

        • By Type









Frequently Asked Questions

Fortune Business Insights says that the global market size was USD 89.25 billion in 2019 and is projected to reach USD 190.66 billion by 2027.

Growing at a CAGR of 10.4%, the market will exhibit steady growth in the forecast period (2020-2027).

The lager segment is expected to be the leading segment based on the product type in the market during the forecast period.

Growing demand for flavorful and innovative beers is a major factor expected to drive market growth.

The Boston Beer Company, Heineken NV, Constellation Brands, Inc., Bell’s Brewery Inc., and Anheuser-Busch InBev are a few of the key players in the market.

Asia Pacific dominated the market share in 2019.

The off-trade sales segment is the leading channel in the global market during the forecast period.

Strategic mergers, new product launches are the key trends in the market.

Craft Beer Market Size, Share and Global Industry Trend Forecast till 2026
  • Oct, 2020
  • 2019
  • 2016-2018
  • 130

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