APAC Beer Market by Distribution Channel, Packaging and Geography - Forecast and Analysis 2023-2027

APAC Beer Market Forecast 2023-2027

The APAC Beer market size is projected to increase by USD 59.9 billion and the market size is estimated to grow at a CAGR of 4.5% between 2022 and 2027. Market momentum is fueled by various factors, including the increasing appetite among Millennials, the rise of low-ABV cocktails, and the introduction of innovative new products. The surge in demand from millennials is fueling the growth of the APAC beer market. As one of the largest demographic segments in the region, millennials exhibit a growing preference for a diverse range of alcoholic beverages, with beer being a prominent choice. Notably, millennials in APAC display a heightened interest in various beer categories, including both value and premium options. This trend is further amplified by the region's expanding multicultural consumer base and the widespread use of social media platforms. Additionally, the prevalence of pubbing, nightlife activities, and social gatherings among millennials contributes significantly to increased beer consumption. With millennials driving higher spending on beer across the APAC region, the market is poised for substantial growth in the foreseeable future.

Beer Market in APAC: Overview

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Segmentation by Packaging

The beer market in APAC is segmented based on distribution channels (on-trade and off-trade) and products (bottles and cans).

The bottles segment accounted for the largest share of the beer market in APAC in 2022.  The consumption of bottled beer in APAC countries such as China, Japan, and South Korea is accountable for the rising demand for bottled beer in the region. Other countries like Vietnam, Thailand, and Indonesia are also witnessing growth in their beer markets. This rising demand is predicted to continue due to factors such as a growing population and higher consumer disposable income in the region.

The canned beer segment is known for its ability to retain its temperature and freshness for longer periods of time when compared to bottled beer. Moreover, canned beer is preferred by those people with limited storage space due to it being easier to store and transport as well as costing less than beer bottles. Canned beer is also viewed as a more practical and efficient storage method in social settings, which will also drive the APAC beer market growth during the forecast period. 

Segmentation by Distribution Channel

The market share growth by the on-trade segment will be significant during the forecast period. This segment includes establishments like bars, pubs, clubs, restaurants, and hotels where consumers can consume beer on-premises. This segment is especially popular among the millennial section of the population, driving beer market growth through bars and pubs. Additionally, the popularity of nightlife and pubbing among millennials in APAC is also predicted to further on-trade beer expenditure.

The on-trade segment was valued at USD 133.85 billion in 2017 and continued to grow until 2021.

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Market Segmentation

The expanding number of bars, pubs, and restaurants will result in increasing sales through on-trade distribution channels. However, the high price of on-trade products compared to beer products sold in retail outlets is likely to pose a challenge to market growth. This increased price is due to trade channels like pubs, restaurants, clubs, and bars, incurring licensing fees, excise duties, and service charges. Additionally, the limited seating capacity of on-premise establishments will also hinder the market growth of this segment of the market during the forecast period.

The off-trade segment includes individual retailers, supermarkets, hypermarkets, and online platforms. They offer greater varieties of choices and have certain sections dedicated to the sales of different brands. Additionally, they do incur seating costs, resulting in lower prices for their products. Some of the largest hypermarkets and supermarkets which offer several brands include Tesco Plc (Tesco), Carrefour SA (Carrefour), and Target Corp. (Target). Moreover, online channels are also gaining popularity due to various advantages like convenience, easy delivery and a wide range of product offerings, which will contribute to further growth of this segment of the market during the forecast period. 

Market Dynamics and Customer Landscape

The surge in demand for craft beer, fueled by the preferences of consumers seeking unique and flavorful experiences, is a driving force in the APAC beer market. This trend is particularly evident in the growing popularity of small, independent breweries and their emphasis on producing premium offerings such as Bollywood IPA, Kokum Sour, and Brown Ale. Consumers are increasingly drawn to craft beer for its diverse flavors, regional influences, and artisanal brewing techniques, aligning with their desire for quality, individuality, and authentic experiences. As fine dining establishments and consumers embrace the craft beer movement, there is a notable shift towards locally sourced ingredients and traditional brewing methods, further enhancing the appeal of craft beer in the APAC region.

Significant Market Trends 

The increasing number of M&As is a key trend in the market. Vendors are increasingly adopting mergers and acquisitions (M&As) to expand their market shares and gain access to new products and technologies. Major vendors can utilize M&As to acquire smaller vendors, consolidate market power and expand their customer base which also helps them capitalize on the regional market growth potential.

Moreover, there has been a rising number of major beer vendors in APAC investing in smaller regional breweries and distributors. For instance, Budweiser Brewing Company APAC Limited, and BrewDog decided to form a joint venture for the manufacturing and distribution of BrewDog beer brands in February 2023. This included beer brands like Punk IPA, Hazy Jane, and Elvis Juice which all operate under BrewDog. Such ventures will help vendors to offer a wider range of beer products and will propel the growth of the APAC beer market during the forecast period.

Challenge 

Campaigns against alcohol consumption are challenging market growth. Various health impacts can be caused by excess alcohol consumption such as alcohol-related accidents and alcohol abuse. Hence numerous global campaigns and initiatives are spreading awareness of this to help prevent alcohol consumption, especially among the millennial population. This has negatively impacted the APAC beer market with some vendors even facing lawsuits that harm their reputation.

Additionally, there are numerous regulatory compliances vendors must adhere to. They must also conduct social responsibility programs, particularly to address issues like drunken driving and abuse and underage drinking. There is also awareness generated from government bodies across the world such as the Department of Health of Hong Kong which launched the Young and Alcohol-Free campaign in December 2016 to target excessive alcohol consumption among the youth. Hence such campaigns that are launched to reduce alcohol consumption will hamper the market growth of the APAC beer market. 

Company Overview

Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.

• Key Offering - Anheuser Busch InBev SA NV - The company offers beer under the brands Aguila, Brahma, and Budweiser.
• Key Offering - Asahi Group Holdings Ltd. - The company offers beer under the brands Super Dry, Pilsner Urquell, and Kozel.
• Key Offering - Beijing Yanjing Beer Group Corp. - The company offers beers such as draft beer, refreshing beer, and crystal draft beer.

The market report also includes detailed analyses of the competitive landscape of the market and information about 15 market companies, including:

• Anheuser Busch InBev SA NV
• Asahi Group Holdings Ltd.
• Beijing Yanjing Beer Group Corp.
• Carlsberg Breweries AS
• Constellation Brands Inc.
• Coopers Brewery Ltd.
• D.G. Yuengling and Son Inc.
• Diageo Plc
• Heineken NV
• Kirin Holdings Co. Ltd.
• Lion Pty. Ltd.
• Molson Coors Beverage Co.
• Sapporo USA Inc.
• Sierra Nevada Brewing Co.
• Squatters Pub Brewery
• Stone and Wood Brewing Co.
• The Boston Beer Co. Inc.
• The Gambrinus Co.
• Tsingtao Brewery Co. Ltd.
• Vam Distilleries and Beverages

Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.

Segment Overview

The market in APAC report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2017 to 2027. 

• Distribution Channel Outlook (USD Billion, 2017 - 2027)
  • On-trade
  • Off-trade
• Packaging Outlook (USD Billion, 2017 - 2027)
  • Bottles
  • Cans

Market Analyst Overview

The Beer Market is not only about traditional offerings but also about innovation and creativity. Craft breweries like Square44 and BentSpoke Brewing are pushing boundaries with unique brews such as Gose style beer and Kokum Sour, appealing to adventurous drinkers seeking new taste experiences. Furthermore, the beer industry is adapting to changing consumer preferences, with a rising demand for low-sugar and gluten-free craft beers to accommodate health-conscious consumers. As the drinking and dining culture evolves, premium beverages like Uptown Craft Lager are gaining traction among affluent consumers looking for high-quality options. With its diverse range of products and evolving trends, the beer market continues to captivate consumers worldwide.

The market is witnessing a dynamic shift driven by various factors, including the rise of craft brewers challenging traditional norms. However, some regions face outright bans, impacting the craft beer market differently. Industrial beer producers are also innovating to meet changing consumer preferences, notably amid the ongoing epidemic. Health consciousness is driving demand for low-alcohol and alcohol-free craft beers, catering to lifestyle diseases and fostering the adoption of healthier drinking choices. This trend is particularly evident among the millennial generation, known for their diverse tastes and interest in low-sugar and low-alcohol content options. As hospitality facilities adapt to these trends, the market continues to evolve with an expanding range of alcohol-free and low-sugar craft beer offerings.

Also, the market is a vibrant landscape shaped by diverse elements, including the emergence of small, independent breweries alongside established giants like Asahi Breweries and Budweiser APAC. Craft breweries, like Putian Craft Brewery in Fujian province, are revolutionizing the industry with premium offerings such as Bollywood IPA and Brown Ale, catering to evolving consumer tastes in fine dining and hospitality sectors. Brands like Goose Island, Boxing Cat, and Far Yeast Brewing Company lead the way in crafting innovative flavors, reflecting a creative culture and responding to the adoption of beer in various lifestyles. With a growing demand for low-alcohol and alcohol-free options, the market is witnessing a surge in low-sugar craft beers, addressing health concerns and regulatory challenges posed by excise tax systems.

Beer Market In APAC Scope
Report Coverage	Details
Page number	145
Base year	2022
Historic period	2017-2021
Forecast period	2023-2027
Growth momentum & CAGR	Accelerate at a CAGR of 4.5%
Market growth 2023-2027	USD 59.9 billion
Market structure	USD Fragmented
YoY growth 2022-2023(%)	4.09
Key countries	China, Japan, India, Australia, and Rest of APAC
Competitive landscape	Leading Vendors, Market Positioning of Vendors, Competitive Strategies, and Industry Risks
Key companies profiled	Anheuser Busch InBev SA NV, Asahi Group Holdings Ltd., Beijing Yanjing Beer Group Corp., Carlsberg Breweries AS, Constellation Brands Inc., Coopers Brewery Ltd., D.G. Yuengling and Son Inc., Diageo Plc, Heineken NV, Kirin Holdings Co. Ltd., Lion Pty. Ltd., Molson Coors Beverage Co., Sapporo USA Inc., Sierra Nevada Brewing Co., Squatters Pub Brewery, Stone and Wood Brewing Co., The Boston Beer Co. Inc., The Gambrinus Co., Tsingtao Brewery Co. Ltd., and Vam Distilleries and Beverages
Market dynamics	Parent market analysis, Market forecasting, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, Market condition analysis for forecast period.
Customization purview	If our market report has not included the data that you are looking for, you can reach out to our analysts and get segments customized.

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What are the Key Data Covered in this Regional Market Research Report?

• CAGR of the market during the forecast period
• Detailed information on factors that will drive the market growth and forecasting of the market between 2023 and 2027
• Precise estimation of the size of the market size and its contribution to the parent market
• Accurate predictions about upcoming market trends and analysis and changes in consumer behavior
• Growth of the market industry across APAC
• Thorough market growth analysis of the market’s competitive landscape and detailed information about companies
• Comprehensive market analysis and report on the factors that will challenge the market research and growth of market companies

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