Craft Beer Market

Craft Beer Market Size, Growth, Forecast (2023-2028)

The Global Craft Beer Market Size is evaluated at USD 109 Billion out of 2022 and anticipated to develop at a CAGR of 14.0%, to reach USD 187 billion by 2028.

Market Overview:

The interest in low-alcoholic beverages has been ascending with the developing enthusiasm from wellbeing conscious customers. The more extensive decision of new items offered by key players with improved taste and low alcoholic substance in the brew for those of 2.8% ABV and less is driving the market. Expanding the adoption of craft beer among Asian shoppers is supposed to stimulate the worldwide market. In any case, danger from other alcoholic drinks, similar to wine, is one of the major thwarting elements to the global craft beer market.

Key Market Trends:

Developing Preferences for Low Alcohol by Volume (ABV)

There is a developing inclination for low liquor by volume drinks, and the deals of no-liquor and low-liquor brews have been ascending with the developing enthusiasm from wellbeing cognizant buyers and a more extensive decision of new ranges with improved taste. There is a pattern toward low-liquor brews and juices, which is ascribed to developing attention to liquor unit utilization and the clients' readiness to attempt new beverages. This move-in pattern is seen in the interest for low liquor drinks by volume at the United Kingdom, where the deals of off-licenses and general stores have taken off to a record high. Another driving component is that the low-liquor beer is presently less expensive than their high alcoholic reciprocals, for those of 2.8% ABV and less. The cost decrease would drive the market for low-liquor lagers, for example, craft beer.

Recent Developments in the Craft Beer Industry:

• Anheuser-Busch, a Belgium based organization, has consented to sell their auxiliary Carlton and United Breweries to Asahi Group Holdings Ltd. The Aashi Group will help in commercializing the arrangement of AB InBev's and the brands related to it in Australia.

REPORT COVERAGE:

Drivers and Restraints in Craft Beer Market:

The expanded buying intensity of the buyers that are searching for increasingly inventive items in the food and beverage industry has brought about a more appeal for craft beer items. In addition, the significant ascent in customer consumption on the planet's most crowded nations is additionally impacting the worldwide Craft Beer Market. The medical advantages of craft beer contrasted and mass-created beer, combined with extra flavors, have made craft beer famous among the young age. Besides, there are generously a high number of recent college grads in the world, and they have indicated less brand reliability and readiness to try different things with new and complex flavors. Craft beer is generally favored due to its credibility, taste, and brand. As a result of the expanding interest for such brews, merchants offer the exceptional assortments of lager. For example, AB InBev offers premium specialty brews, Stella Artois, Leffe, Hoegaarden, and ShockTop, a home-style specialty lager. The presentation of the top-notch assortments of craft beer, for example, IPA, pale beer, and heavy, by worldwide and local full-scale distilleries and microbreweries, will drive the development of the market.

The top measures of liquor utilization can likewise prompt diabetes. In general, there are numerous dangerous issues that are hampering the development of the global craft beer market.

Many craft beer players utilize the cash premise method for speaking to obligation purposes. Under the past rules, associations were generally allowed to use this technique if their ordinary yearly gross receipts didn't outperform certain levels (for the most part a restriction of $10 million). As the quantity of craft beer developed, they wound up limited in using the cash premise technique for accounting as they outperformed the gross receipts test. The US government is applying tops on numerous brewers for the creation and is enforcing additional obligations and charges if the quantity of barrel creation outperformed the cutoff. There are starting at now enough brewers in the domain, and adding another would be contrary to the zone's bit of leeway, morals, prosperity or government assistance. Steve Hindy, the organizer of Brooklyn Brewery, expresses that some little brewers will not enter specific business sectors on account of the nearby wholesalers' notoriety. That is terrible for these organizations and awful for the economy, however especially awful for buyers, who couldn't want anything more than to attempt the most recent well-known craft beer yet can't discover them in their state.

Craft Beer Market Segmentation Analysis:

Based on the product type, the global craft beer market is segmented into Ale and Lagers. Of these, ale segment registered the highest share in the worldwide craft beer business. In recent years, several customers have developed a particular preference for conventional beers like a pale ale, porters, and stout. This has mostly driven some of the key players in the global market to reinstate different types of traditional beers into the marketplace. For example, Heineken launched a new line of craft beer in 2019 for the market in the UK.

Based on the distribution channel, the global craft beer market is bifurcated into on-trade and off-trade. The on-trade segment held the lion's share in the craft beer business. The on-trade distribution segment often comprises bars, restaurants, coffee shops, clubs, and hotels. The distribution and sales of products in this segment are entirely different from the approach and practices in the off-trade sector. Consumers are looking for a more comfortable and stylish experience, which resulted in an increased number of brewpubs, tasting rooms, and tiki bars. This factor stimulates the rise in the pub and bar culture among millennials, which promotes the global craft beer market growth.

Depending on the age group, the global craft beer industry is divided into 21–35 years, 40–54 years, and 55 years and above. The people in the age group 21–35 years, often referred to as millennials have been detrimental in the surge of different industries, based on product offerings and services. They have been the prime customers in the international marketplace. The craft beer brewers have been continuously implementing new strategies in terms of their product offerings to meet the changing preference of the millennial segment. Thus, upsurge in a number of millennials is anticipated to provide lucrative opportunities for the global craft beer market in the forecast period.

Craft Beer Market Geographical Segmentation Analysis:

• North America - the United States and Canada
• Europe - United Kingdom, Spain, Germany, Italy, and France
• The Asia Pacific - India, Japan, China, Australia, Singapore, Malaysia, South Korea, New Zealand, and Southeast Asia
• Latin America  - Brazil, Argentina, Mexico, and Rest of LATAM
• The Middle East and Africa - Africa and Middle East (Saudi Arabia, UAE, Lebanon, Jordan, Cyprus)

Region-wise Analysis:

Europe craft beer market dominated the global business. The growth in this region is due to the increased intake of different types of craft beers. With the augmenting demand for these beers, Europe comprises both regional as well as international players that play a pivotal role in the growth of the global craft beer market size, in terms of value.

Asia-Pacific to be the Fastest Growing Region

Nations of the Asia-Pacific area, for example, China and India have seen to have the fastest development in the market because of its expanding interest for larger, extra cash of the individuals, urbanized populace, extension of crucial organizations in numerous nations and expanding create bottling works across the area. In China, a progression of studies have been directed to survey and improve the viability, adequacy and possibility of the catalysts utilized in preparing which results in created and defined items, hence boosting the craft beer market.

Competitive Landscape:

Some of the prominent names in the industry that are dominating revenues with their innovative flavors and packaging are AB In Bev, Heineken NV, The Boston Beer Company, Constellation Brands, Sierra Nevada, and others. In the earlier days, low ABV beers are used to be tasteless, which are now replaced with the craft beers.

Key Players in the Market:

Major Key Players in the Global Craft Beer Market are

• Anheuser-Busch InBev
• Heineken NV
• The Boston Beer Company Inc.
• D.G. Yuengling& Son Inc.
• Sam Adams
• Constellation Brands
• Sierra Nevada
• The Gambrinus Company
• Chimay Beers and Cheeses
• Stone & Wood Brewing Co.
• Vagabund