The global craft beer market is expected to be worth USD 141.66 Billion in 2024 and grow at a CAGR of 14.0% from 2024 to 2029 to reach a value of USD 272.75 Billion by 2029.
The interest in low-alcoholic beverages has been ascending with the developing enthusiasm from well-being-conscious customers. Craft beer is generally favored due to its credibility, taste, and brand. As a result of the expanding interest in such brews, merchants offer exceptional assortments of lager. For example, AB InBev offers premium specialty brews, Stella Artois, Leffe, Hoegaarden, and ShockTop, a home-style specialty lager.
The expanded buying intensity of the buyers who are searching for increasingly inventive items in the food and beverage industry has brought about 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 with mass-created beer, combined with extra flavors, have made craft beer famous at a young age. Besides, there is a generously high number of recent college graduates in the world, and they have indicated less brand reliability and readiness to try different things with new and complex flavors. 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 growing number of product launches by the key market players with improved taste and low alcoholic substance in the brew for those of 2.8% ABV and less is contributing to the growth of the craft beer 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, like wine, is one of the major factors in the global craft beer market.
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 well-being 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 client's readiness to attempt new beverages. This move-in pattern is seen in the interest for low liquor drinks by volume in the United Kingdom, where the deals of off-licenses and general stores have taken off to a record high. The low-liquor beer is presently less expensive than their high alcoholic reciprocals, for those of 2.8% ABV and les, which is further favouring the global market growth.
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 number of barrels created outperformed the cutoff. There are already 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, it is especially awful for buyers, who couldn't want anything more than to attempt the most recent well-known craft beer yet couldn't discover them in their state. The top measures of liquor utilization can likewise prompt diabetes. In general, numerous dangerous issues are hampering the development of the global craft beer market.
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REPORT METRIC |
DETAILS |
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Market Size Available |
2023 to 2029 |
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Base Year |
2023 |
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Forecast Period |
2024 to 2029 |
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CAGR |
14% |
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Segments Covered |
By Product Type, Distribution Channel, Age Group, & Region |
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Various Analyses Covered |
Global, Regional and Country Level Analysis; Segment-Level Analysis; DROC; PESTLE Analysis; Porter’s Five Forces Analysis; Competitive Landscape; Analyst Overview of Investment Opportunities |
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Regions Covered |
North America, Europe, APAC, Latin America, Middle East & Africa |
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Market Leaders Profiled |
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. and Vagabund |
Of these, the 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 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 UK market.
The on-trade segment held the lion's share in the craft beer market. 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 growth of the global craft beer market.
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. Craft beer brewers have been continuously implementing new strategies in terms of their product offerings to meet the changing preferences of the millennial segment. Thus, an upsurge in the number of millennials is anticipated to provide lucrative opportunities for the global craft beer market in the forecast period.
Europe dominated the craft beer market in 2023 and is anticipated to register promising growth during the forecast period. The growth in of the European region is majorly attributed 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.
Nations of the Asia-Pacific area, for example, China and India, have seen the fastest development in the market because of their expanding interest in larger, extra cash the individuals, urbanized populace, extension of crucial organizations in numerous nations, and expanding creation bottling works across the area. In China, a progression of studies has 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.
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. and Vagabund are some of the major players in the global craft beer market. 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 used to be tasteless, but they are now replaced with craft beers.
By Product Type
By Distribution Channel
By Age Group
By Region
Frequently Asked Questions
The Challenges in the craft beer market are Competition with more giant beer corporations, Distribution challenges for small breweries, Fluctuations in raw material costs, Regulatory hurdles, and compliance issues.
The factors contributing to the growth of the craft beer market are Increasing consumer demand for diverse and unique beer flavors, growing interest in supporting local and independent breweries, the rising popularity of beer culture and craft beer festivals, and Innovation in brewing techniques and ingredients.
Craft beer festivals provide a platform for breweries to showcase their products, connect with consumers, and build brand awareness. These events contribute to the overall growth of the craft beer culture.
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