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The craft beer market size is projected to increase by USD 102.87 billion, at a CAGR of 12.96% between 2023 and 2028.
The market in the US exhibits robust diversity, fueled by various brewing companies catering to both domestic and export demand. The country's substantial annual production volume and high consumption patterns propel the demand for this product, fostering significant growth. The market sees a surge in new entrants, particularly small-scale setups focusing on the microbrewery segment, contributing to the overall expansion. The proliferation of microbreweries across North America positively influences the market. Globally, craft brewers, exemplified by Anheuser Busch InBev SA NV, introduce innovative products, fostering growth through experimentation with novel processes and ingredients, evident in their diverse brand offerings like Budweiser, Bud Light, Corona, and others, thereby shaping the dynamic landscape of the market.
The market shows an accelerated CAGR during the forecast period.
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New product launches in the craft beer market are notably driving market development. Successful new product launches help to increase the revenue flow and, hence, will increase the market share of the players during the forecast period. New product launches also help to sustain the interest of the players alive in the market. For instance, in April 2022, Bell's Brewery Inc. launched its new specialty beer, SMaSH and Sparkle, a Belgian triple-brewed blend of single malt and hops, to celebrate women in this community.
Similarly, in March 2022, Modelo Company, a subsidiary of AB InBev, launched new products in addition to an expansion on their successful flavour-forward Cheladas and new test offerings. The new product launches include Modelo Oro, Modelo Chelada Limon y Sal, Modelo Chelada Naranja Picosa, Modelo Cantarito-Style Cerveza, and Modelo Ranch Water. Therefore, an increase in new product launches is expected to drive the market during the forecast period.
Increasing export of craft beer is an emerging trend shaping market growth. The demand for American craft beer is increasing among consumers in Europe and APAC, and it is one of the major reasons behind the increase in the demand for this product in both regions. These products face successful competition with other alcoholic products in European countries, and the demand for exotic, rare, and innovative flavors has increased. The domestic production of this product is not able to meet the rising demand for this product in various European countries, and hence, they depend on imported craft beer products to meet the growing demand.
Moreover, the rising demand for this product is from emerging countries and the launch of beer in different flavors and types is expected to increase the export of beer during the forecast period. The rising demand for beer such as craft, low-alcohol, and flavoured will increase exports and drive the market. The increasing export of these products to meet the growing demand for this product among consumers will help in the growth of the market during the forecast period.
Campaigns against alcohol consumption are a significant challenge hindering market growth. Another challenge to the development of the market is the increasing number of campaigns against the consumption of alcohol. The growing incidence of alcohol abuse and alcohol-related accidents, especially among the younger population, has led to many regulatory and social organizations launching campaigns against alcohol consumption and players to prevent this. For instance, many foundations, such as Mothers Against Drunk Driving (MADD), Students Against Destructive Decisions (SADD), the American Medical Association, and the National Center on Addiction and Substance Abuse, are engaged in discouraging alcohol consumption in the US.
Moreover, awareness about health and the inclination of people toward healthy lifestyles have encouraged the consumption of healthy drinks and beverages. The growing preference for non-alcoholic beverages, such as health drinks, is negatively affecting the growth of the market. Globally, the consumption of alcohol has witnessed a steady decline, owing to the changing consumer preference for healthier, non-alcoholic beverages because of advertisements and awareness campaigns related to the adverse effects of alcohol on health. The increasing campaigns against alcohol consumption in various countries will hamper the market during the forecast period.
The off-trade segment of the market refers to the distribution and sale of this product through channels such as supermarkets, liquor stores, and online retailers, where consumers purchase beverages for consumption off-premises. This segment is characterized by the growing demand for premium and artisanal beer offerings, driven by shifting consumer preferences towards unique flavors and high-quality brews. Additionally, the convenience and accessibility offered by off-trade channels appeal to consumers seeking wider options without the need to visit breweries or specialty bars. Furthermore, the expansion of distribution networks, coupled with effective marketing strategies by craft breweries targeting off-trade channels, has further fueled the growth of this segment. Overall, these factors will drive the expansion of the off-trade segment to win the market during the forecast period.
The market share growth by the India pale ale segment will be significant during the forecast period. India pale ale can be defined as a stronger variant of pale ale in which more hopping is done. It also has a high alcohol content. Traditionally, it was carried by the British colonists to India, which is how it got its name. However, this beer style had largely vanished. That is, until the late twentieth century when the American product of this had a revival. India Pale Ales are now the flagship beer for craft brewers worldwide and are extremely popular.
The India pale ale segment was the largest and was valued at USD 27.68 billion in 2018.
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Further, one factor driving the popularity of India pale ale craft beer is its compatibility with the country's vibrant culinary scene. The bold flavours and aromatic complexity of Indian pale ale pair well with a wide range of Indian dishes, from spicy curries to rich meats and hearty vegetarian fare. As a result, India's pale ale has found prominence not only among beer enthusiasts but also among food aficionados seeking complementary beverage options to enhance their dining experiences. Furthermore, the movement in India has been buoyed by a sense of experimentation and collaboration within the brewing community. Indian brewers are constantly exploring new hop varieties, brewing techniques, and flavor combinations to push the boundaries of India pale ale innovation. Collaborative brewing projects, beer festivals, and tasting events provide platforms for brewers to showcase their creations and engage with consumers, fostering a vibrant and dynamic culture across the country. These factors will drive the India pale ale segment of the market during the forecast period.
North America is estimated to contribute 35% to the growth of the global market during the forecast period
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Technavio's analysts have provided extensive insight into market forecasting, detailing the regional market trends and drivers influencing the market's trajectory throughout the forecast period. The companies in the market have strong access to distribution channels across platforms. Many vendors sell their products through hypermarkets, supermarkets, online retail, and delivery stores. For instance, Target, one of the largest discount retailers in North America, offers various brands, including Miller Lite Beer American Lager 24-pk/12 fl. oz. cans, Stella Artois Premium Lager 6-pk/11.2 fl. oz. bottles, Bud Light Beer 12-pk/12 fl. oz. cans, and others. Improved channels for distribution, rising disposable incomes, and a growing preference will drive the market in North America during the forecast period.
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 forecasting growth and analysis.
The market growth and forecasting report also includes detailed analyses of the competitive landscape of the market and information about 20 market companies, including Anheuser Busch InBev SA NV, Asahi Group Holdings Ltd., Brasserie De La Senne, BrewDog Plc, Buxton Brewery Co. Ltd., Carlsberg Breweries AS, Cloudwater Brew Co., D.G. Yuengling and Son Inc., Diageo Plc, Duvel Moortgat NV, Heineken NV, Kirin Holdings Co. Ltd., Magic Rock Brewing Co. Ltd., Mikkeller APS, Palm Belgian Craft Brewers, Stone Brewing Co. LLC, Swinkels Family Brewers, The Boston Beer Co. Inc., and United Breweries Ltd.
The market analysis and report of 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.
The market research and growth report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2018 to 2028.
The Craft Beer Market is experiencing significant growth, driven by evolving consumer preferences and trends. On-trade channels and off-trade distribution segments are crucial for reaching consumers, especially health-conscious individuals seeking low-ABV beers. Key players are introducing new products with 2.8% ABV, targeting a wider audience including wine enthusiasts. Independent microbreweries are thriving, attracting the younger generation with their variety and flavor-forward approach. Quality is paramount in this market, with a focus on both no-alcohol and low-alcohol. Health-conscious customers are driving product innovation, pushing for differentiation in packaging, price, and production techniques. Disposable income plays a role in consumer choices, especially regarding flavors and brand loyalty. This market continues to evolve, catering to diverse tastes and preferences while emphasizing quality and innovation.
Industry Scope |
|
Report Coverage |
Details |
Page number |
168 |
Base year |
2023 |
Historic period |
2018-2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 12.96% |
Market Growth 2024-2028 |
USD 102.87 billion |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
11.72 |
Regional analysis |
North America, Europe, APAC, South America, and Middle East and Africa |
Performing market contribution |
North America at 35% |
Key countries |
US, Canada, China, Germany, and UK |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
Anheuser Busch InBev SA NV, Asahi Group Holdings Ltd., Brasserie De La Senne, BrewDog Plc, Buxton Brewery Co. Ltd., Carlsberg Breweries AS, Cloudwater Brew Co., D.G. Yuengling and Son Inc., Diageo Plc, Duvel Moortgat NV, Heineken NV, Kirin Holdings Co. Ltd., Magic Rock Brewing Co. Ltd., Mikkeller APS, Palm Belgian Craft Brewers, Stone Brewing Co. LLC, Swinkels Family Brewers, The Boston Beer Co. Inc., and United Breweries Ltd. |
Market dynamics |
Parent market analysis, 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 the 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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1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Product
7 Market Segmentation by Distribution Channel
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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