DUBLIN, July 26, 2022 /PRNewswire/ -- The "Craft Beer Market Size, Market Share, Application Analysis, Regional Outlook, Growth Trends, Key Players, Competitive Strategies and Forecasts, 2022 to 2030" report has been added to ResearchAndMarkets.com's offering.
In 2020, the global craft beer market was worth over $95 trillion
This study report represents analysis of each segment from 2020 to 2020 considering 2021 as the base year. Compounded Annual Growth Rate (CAGR) for each of the respective segments estimated for the forecast period of 2022 to 2030.
The current report comprises of quantitative market estimations for each micro market for every geographical region and qualitative market analysis such as micro and macro environment analysis, market trends, competitive intelligence, segment analysis, porters five force model, top winning strategies, top investment markets, emerging trends and technological analysis, case studies, strategic conclusions and recommendations and other key market insights.
Globally, the impact of COVID-19 was unprecedented. The market evidenced a decrease in demand across all regions due to the pandemic. The market is projected to grow at a CAGR exceeding 8% between 2022-2030.
Due to constant taste modification and improvements, as well as the availability of many flavorful options, the market is experiencing steady growth across the globe. Consumers are constantly looking for new and innovative beverages, which has led to an increase in the demand for flavorful options.
Covid-19 Impact: Market Bounced Strongly Post Covid-19 Leading to the Change in Coping Strategies
Beer is considered as a relaxing beverage by many consumers. To maintain social distancing, governments closed many bars, restaurants, taprooms, and pubs during the global COVID-19 pandemic. This led to a negative impact on the global market. According to the Brewers Association's May study, total brewery sales in the U.S. fell by 30% in May compared to the previous year.
Nearly 90% of the brewing firms had either stopped or slowed their production as their YoY sales declined in April. Due to lockdown enforcement S. and cancellation of orders by distributors, over 85% of craft breweries were forced to close their brew pubs in the U.S. This adversely affected most of the local craft breweries. The market has recovered immensely due to the opening of taprooms and the ease of production. This revival has led to significant changes in the market trends and our report contains a detailed analysis of the same.
Go green Technology, Change in Customer Preferences, and Increasing Socialization are all Contributing to the Market Growth
The rise in socializing, especially among millennials has increased their visits to taprooms and brewpubs. The rise in independent and small breweries has also contributed to this increase.
Breweries are working to improve their beer production in order to meet increasing consumer demand. According to the Brewers Association, the United States' small and independent brewers produced around 26.3 million barrels of beer in 2019, a 4 percent increase over the previous year. Craft production was responsible for 25.2% of the total U.S. product retail market in 2019, which has contributed to overall market growth. However, the impact of covid-19 led to a significant loss in 2020.
Go-green technology, which is a result of recent developments in craft beer development, is being integrated into beer production to increase market growth and reduce waste. Canning has been a major factor in the development of craft beer over the past few years. The demand for craft beer is increasing due to the rise in restaurants, bars, and pubs in cities. The market has seen a rise in demand for craft breweries due to the proliferation of social trends among millennials.
Non-alcoholic craft beer sales have increased due to growing health awareness and awareness among millennials about all the benefits of non-alcoholic beer. With a rising preference for low alcohol volume beverages, sales of low-alcohol and no-alcohol beers are increasing. This is due to the growing demand from health-conscious customers and an increased variety of options with better taste.
Low-alcohol ciders and beers are on the rise due to increasing awareness about alcohol consumption and customers' willingness to try new drinks. Anheuser-Busch InBev, for instance, launched four low- and no-alcohol beers in 2020 to expand its product range. These beers contain less than 4% alcohol. This shift is evident in the volume of low-alcohol drinks in the United Kingdom. Off-licences and supermarket sales have reached a new record. Low-alcohol beers, which are those with 2.8% ABV or less, are more affordable than their higher-alcohol alternatives. This is to increase the demand for low-alcohol beer, such as craft beer.
Innovations in Alcoholic Drinks is Impeding the Market Growth
Although alcoholic beverages are popular worldwide, there are many other alcohol craft beverages like gin and whiskey that are hindering market growth. Due to consumers' willingness to experiment with new types of craft spirits, there is a growing preference for such spirits. The other alcoholic craft drinks are also more varied than the alcoholic beverage, and undergo several distillation methods to produce high-quality liquor. The market is also restrained by the availability of many flavors in alcoholic craft drinks such as grapefruit and raspberry, lemon, and other.
Customers to Prefer Low Alcohol Beer Alternatives During the Forecast Period
As consumers become more health conscious, they are drawn to low-alcohol beverages. Sales of no-alcohol and lower-alcohol beers are on the rise due to increased competition from new, better-tasting products. Ciders and beers with low alcohol levels have enjoyed increasing popularity due to increased awareness about alcohol consumption and the desire to try new drinks.
This trend can be seen in the volume of low-alcohol drinks in the United Kingdom, which has seen record sales at the supermarket and off-license levels. Low-alcohol beers, those with less than 2.8% ABV, are also cheaper. Low-alcohol beer could be more popular in craft beer and provide a significant opportunity for growth.
Craft Lager to Evidence Significant Growth While Off Trade Channels are Being Preferred and Millennials are the Key Target
Craft lager is experiencing significant growth due to brewers adding new varieties such as pales and light lager to their product ranges in an effort to attract consumers' attention away from the main brands. Craft lagers are becoming more popular due to their light, malty flavor. Brewers are now looking for products with longer shelf life and lower-cost ingredients. This has led to an increase in craft lager production. Ale is the second most popular alcoholic beverage on the market, followed closely by lager.
Due to the wide variety of beer types and flavors, off-trade channels have seen an increase in craft beer sales in recent years. Off-trade channels like convenience stores and supermarkets are preferred by consumers as they offer convenient cans or pre-chilled bottles. Consumers are inclined towards purchasing alcoholic beverages from off-trade sources. Consumers prefer to drink at home over in pubs, which is more comfortable, relaxing, and cost-effective.
On-trade markets have a completely different approach to product distribution and sales than the off-trade. The on-trade market is dominated by the bar/restaurant manager and any trade professionals (bartenders, waiters) who play a crucial role in the sales process. On-trade establishments that offer tasting rooms, brewpubs and tiki bars provide a more luxurious and comfortable experience for customers. This has led to the increase in millennials adopting pub and bar culture in turn driving the growth in the craft beer market.
Market Consolidation to Toughen the Competition During the Forecast Period
Global market is largely dominated by key players that includes The Boston Beer Company, Heineken NV, Constellation Brands, Inc., Anheuser-Busch Inc., and Constellation Brands, Inc.
These companies are all actively focusing on new product launches, incorporating novel ingredients, and improvising the process. Strategic mergers is also a notable strategy adopted by the major players to strengthen their businesses and increase their market presence. To diversify its product range, Anheuser-Busch InBev purchased the remaining 68.8% of Craft Brew Alliance in June 2020.
Key questions answered in this report
What are the key micro and macro-environmental factors that are impacting the growth of craft beer market?
What are the key investment pockets with respect to product segments and geographies currently and during the forecast period?
Estimated forecast and market projections up to 2030.
Which segment accounts for the fastest CAGR during the forecast period?
Which market segment holds a larger market share and why?
Are low and middle-income economies investing in the craft beer market?
Which is the largest regional market for craft beer market?
What are the market trends and dynamics in emerging markets such as Asia Pacific, Latin America, and Middle East & Africa?
Which are the key trends driving global craft beer market growth?
Who are the key competitors and what are their key strategies to enhance their market presence in the craft beer market worldwide?
Beijing Enterprises Holdings Limited (Beijing Yanjing Brewery Co., Ltd.)
Dogfish Head Craft Brewery, Inc.
Heineken Holding NV.
Squatters Pub and Beers.
Sierra Nevada Brewing Co.
The Boston Beer Company, Inc.
United Breweries Limited
For more information about this report visit https://www.researchandmarkets.com/r/xgn0qr
Research and Markets
Laura Wood, Senior Manager
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