What? When? Why?
Latest Happenings in Business World
22
Nov-2019
Noteworthy types and trends in the Craft Beer Market
Craft Beer Market By Production (Amber Ale, Amber Lager, Indian Pale Ale And Others), By Segments (Brewpubs, Microbreweries, Regional Craft Breweries And Contract Brewing Companies), By Distribution (On-Trade And Off-Trade) And By Region
Craft Beer Introduction:
Beer, in general, has been subject to numerous government regulations. The regulation meets several objectives, such as increasing public revenues through beer taxes, protecting the health of the consumer, protecting society from alcohol abuse, reducing the price of bread and the limitation of market power. Similarly, as demand for craft beer has increased, governments have supported two-way interaction with standards and regulations.
On the one hand, regulations have stimulated or limited the production of craft beer compared to breweries. On the other hand, the growth of the craft brewery led to regulatory changes that facilitated the subsequent entry of craft breweries.
Craft beer, although it existed for decades (even centuries), it has only recently become a real phenomenon and an essential part of the cultures around the world. With the emergence of new craft breweries every day, it has never been easier to drink quality, well-made beer from around the world.
Market Trends:
Growth preferences for low alcohol by volume (ABV)
There is a growing preference for low-alcohol beverages by volume, and sales of non-alcoholic and low-alcohol beers have increased with the increasing interest of health-conscious consumers and a greater variety of new lines of tastier products. There is a trend towards low-alcohol beers and ciders, which is attributed to increasing awareness of alcohol consumption and the willingness of customers to try new drinks. This shift in direction is reflected in the volume demand for low-volume beverages in the United Kingdom, where license and supermarket sales have reached record levels. Another determining factor is that low-alcohol beers are now cheaper than their high alcohol counterparts, for those with 2.8% or less. Cost reduction would stimulate the market for low-alcohol beer, such as craft beer.
Ales remains the fastest-growing segment
Many microbreweries of craft beer have opened worldwide, especially in the last decade, and large breweries also produce their range of craft beers. Natural ingredients, such as water, barley, yeast and hops have been involved in the production process since its inception. In more mature markets and some emerging markets, consumers are starting to drink "less but better" beer, usually with higher barley and malt content. Ales-style craft beer has maintained its position in the craft beer market for decades. The rapid growth of American craft beer has displaced some of the demand for beer and brown beers brewed in the UK, Ireland and Germany.
Types:
There are six distinct segments of the craft beer market: microbreweries, breweries, taverns, regional breweries, contract breweries and alternative owners.
Microbrewery
A brewery produces less than 15,000 barrels of beer a year and sells 75% or more of its off-site beer. Microbreweries sell to the public in one or more of the following ways: the traditional three-tier system (wholesaler to retailer to consumer); the two-tier system (brewer who acts as a wholesaler for a mainstream retailer); and directly to the consumer through transfers and sales in the on-site tavern or restaurant.
Brewpub
A restaurant brewery that sells 25% or more of its beer on-site and operates extensive food services. The beer is mainly for sale in restaurants and bars and is often shipped directly from the brewery's storage tanks. Where permitted by law, breweries often sell takeaway beer or distribute it on off-site accounts.
Taproom Brewery
A professional brewery that sells 25% or more of its beer on-site and does not perform any significant catering service. Beer is made primarily for sale indoors and is often distributed directly from the brewery's storage tanks.
Contract Brewing Company
A company that hires another brewery to produce beer. It can also be a brewery that employs another brewery to produce extra beer. The contract beer company manages the marketing, sale and distribution of its beer, generally leaving the brewery and packaging to its brewery.
Alternate owner
Brewery with a licensed tenant who physically takes possession of a shared brewery during the brewing phase. Unlike contract brewers, alternative owners are the registered brewery for all obligations of the licensed brewery, including record keeping, paying taxes and approving the label or formula.
Regional Analysis:
On a regional level, Europe dominates the craft beer market. The region has seen an increase in the consumption rate of different types of craft beers. Due to the growing demand for this type of beer, Europe includes regional and international players who play a central role in increasing the size of the craft beer market in terms of value.
WRITTEN BY:
CATEGORY
RECENT POST
CLIENTS
.png)
.png)
