Global Craft Beer Market - WishTree Insight

Global Craft Beer Market by Product Type (Lagers, Ale, Speciality, and Others), Distribution Channel (Off-Trade and On-Trade), and Regions, The Asia Pacific, Middle East Africa, Europe, North America, and Latin America) - Global Industry Analysis, Share, Growth, Trends, Size, and Forecast 2021 – 2031

The global craft beer market size was valued at USD 125 billion in 2021 and is expected to surpass USD 367 billion by 2031, expanding at a CAGR of 18.2% during the forecast period, 2021–2031. The market's growth is attributed to the growing population, increase in social trends for different flavors, rising demand for low alcohol by volume (ABV), and the medical advantages of craft beer.

INTRODUCTION

Craft Beer is made by craft breweries. Beer is made in a traditional way by a small brewery. Beer is brewed in a traditional and independent brewery with low production. This brew is crafted not manufactured. These beers are handcrafted, uncompromised beer that is marketed locally. Having varied brewing techniques breweries have an emphasis on new flavors. The microbrewery movement started in the year 1970, in the United States and in the United Kingdom. In Europe, traditional artisanal brewing existed for centuries and spread to other countries later. As the movement grew, some breweries expanded their production and distribution and encompasses the concept of craft brewing.

Types of beer brewing

• Microbrewery: The term is used for the size of breweries that approach brewing flexibility, customer service, adaptability, and experimentation.

• Nanobrewery: Nano brewery is a concept that produces beer in small batches.

• Craft Brewery: Craft brewery encompasses the succeeding microbrewing movement.

• Farm Brewery: Farm brewery or farmhouse brewers exist for centuries. Farm brewing had small and more unique methods of brewing and fermenting.

• Brewpub: A brewpub is a combination of a brewery and a pub that brews beer on its premises.

 Craft beer adopts a marketing strategy that differs from other mass-market breweries. The influence of craft beer is greater than its market share which amounts to only 2% in the U.K. The government in countries including New Zealand, Australia, China, Belgium, Mexico, and the UK are promoting the production of craft beer and the incorporation of new breweries. The contribution of the craft beer industry led to economic development and generation of employment coupled with the willingness of the consumer to pay for better-tasting brews.

Market Trends, Drivers, Restraints, and Opportunities

• The increasing popularity of organic alcoholic beverages and the growing millennial population are anticipated to grow the craft beer market.
• Rising income, a growing number of female drinkers, increasing social media marketing, and changing consumer lifestyles & preferences are expected to fuel the craft beer market within the forecast period.
• The medical advantage of craft beer and the addition of flavors have made craft beer popular in the market
• Increased consumption amongst the young population has led to increasing the craft beer market worldwide.

Scope of the Report

Market Segment Insights

The ale segment is projected to register a considerable CAGR

Based on product type, the global craft beer market is divided into lagers, ale, specialty, and others. The ale segment is expected to expand at a rapid pace during the forecast period. The ale segment is further segmented into porters, brown ale, stouts, pale ale, and Scottish-style ale. Over the period the customers demand traditional beers such as porter, stout, and pale ale. This growing consumer demand for the ale beer segment is projected to spur the market. However, the lagers segment is anticipated to hold a key market share in the coming years.

The on-trade segment is expected to expand at a rapid pace

Based on the distribution channel, the global craft beer market is bifurcated into off-trade and on-trade. The on-trade segment is expected to expand at a rapid pace during the forecast period. The on-trade segment includes outlets such as clubs, restaurants, pubs, bars, and others. The distribution and sales of products in the on-trade segment differ from that of off-trade as consumers seek a more comfortable and lavish experience in on-trade premises. However, the off-trade segment is anticipated to hold a key market share in the coming years.

The Europe region is anticipated to constitute a key market share

In terms of regions, the global craft beer market is classified as Asia Pacific, North America, Latin America, Europe, and Middle East & Africa. The market of Europe is expected to constitute a key share of the market during the projected period. The region has witnessed a surge in the consumption of various types of craft beer. Owing to the rise in demand for these beers the region comprises the regional as well as global key players. However, the market of the North American region is anticipated to expand at a rapid pace during the forecast period, due to the large beverage consumption trend. The Asia Pacific region is considered the fastest-growing region with key players adopting expansion strategy in the forecast period.

Competitive Landscape

Key players competing in the global craft beer market are Beijing Enterprise Holdings Limited (China); Carlsberg Group (Denmark); Dogfish Head Craft Brewery, Inc. (Delaware); Heineken Holding NV. (Amsterdam); The Boston Beer Company, Inc. (Boston, U.S.); United Breweries Limited (India); Diageo PLC (U.K.); Karl Strauss (Germany); Bacardi Limited (Bermuda).

FAQs

How much is the market worth?

The global craft beer market size was valued at USD 125 billion in 2021 and is expected to surpass USD 367 billion by 2031.

During the forecast period, what is the CAGR of the market?

During the forecast period, the CAGR of the market is expected to be 18.2%.

What are the key drivers of the market?

The market's growth is attributed to the growing population, increase in social trends for different flavors, rising demand for low alcohol by volume (ABV), and the medical advantages of craft beer.

What segments are covered in the global craft beer report?

The segments covered in the report are product type (lagers, ale, specialty, and others), and distribution channel (off-trade and on-trade).

Mention which region is expected to hold the highest share in the global craft beer market.

The Europe region is expected to hold the highest share of the global craft beer market.

Which segment holds the largest market share in global craft beer by 2031?

The ale segment holds the largest market share in global craft beer by 2031.