The size of the Europe craft beer market is estimated to grow at a CAGR of 13.12% from 2024 to 2029 and be worth USD 73.58 billion by 2029 from USD 42.95 billion in 2024.
Craft beer is a traditional beer produced in a small brewery. Ale, lager, and specialty beers are some of the common types of craft beers. Craft beers are the kind of beers that are processed using traditional or non-traditional mechanisms. Craft Beer is small breweries that produce significantly less beer than large commercial breweries, independently owned and focused on quality, taste, and brewing skills.
With the growing interest of health-conscious consumers, the demand for low-alcohol beverages such as craft beer is increasing in Europe and is driving the European craft beer market. Growing consumer awareness of low alcohol content based on the availability and volume ratio of different styles and flavors of craft beer will drive the growth of the European Craft Beer market for years to come. There has also been a shift in consumer preferences, and it is now leaning more towards regular beer. The governments of European countries are promoting the production of craft beer and the integration of new breweries, considering the positive contribution of the industry to economic development and job creation, together with the willingness of consumers to pay more for a better-tasting beer.
The growth of the European craft beer market is further driven by the growing number of breweries, lounges, and bars. The growth of millennials is expected to create favorable opportunities for the European Craft Beer market during the forecast period. The significant growth of the European Craft Beer market has increased the availability of technical equipment and capital, allowing for small-scale brewing. In the early stages, entrepreneurs had great difficulty finding the right equipment to finance the brewery and regularly using capital equipment designed for other craft beer industries. However, over the years, the Craft Beer sector has witnessed an increasing adoption of improved technologies and equipment specifically designed for Europe Craft Beer. Beer consumption per person is quite high, and craft beers cannot be expected. Furthermore, consumers, mainly in Europe, prefer fine craft beers. The growing populations of Generation X and Generation Y also drove the demand for European Craft Beer. To provide a decent pale ale, manufacturers are focusing on hops. The constant change in the lifestyle around the world offers numerous opportunities in the European Craft Beer market. This brings good news to the main market players in the business sector. A growing young population and a growing number of female drinkers are driving the growth of the European craft beer market.
In addition, the consumption of these beverages has exploded as the number of restaurants and bars has exploded because people prefer to drink on the premises rather than on the premises. Growing consumer preference for ABV (low alcohol) beer is driving the European Craft Beer market. Demand is expected to increase over the forecast period as consumer awareness of the different flavors and styles of craft beer paired with a low alcohol content (ABV) increase. More and more craft beer enthusiasts from the UK, Spain, Germany, and France are also expected to have a positive impact on the European craft Beer market. The growing popularity of organic alcoholic beverages and the growing millennial population is expected to drive the growth of the European Craft Beer market. Some of the other factors, such as the increase in disposable income, the increase in female drinkers, the increase in social media marketing, and changes in consumer lifestyles and preferences, are expected to drive the European craft beer market growth.
Fluctuations in raw material costs, high craft beer costs, and high excise duties are expected to hamper the European Craft Beer market growth during the mentioned forecast period. The threat from other alcoholic beverages like wine is one of the biggest impediments to the European Craft Beer market.
Regarding global restrictions imposed on functional cafes and pubs, the craft beer mass consumer sector (for example, commercial channels) expanded the decline during 2020. However, as the COVID-19 situation gradually improved, restrictions were lowered. The European Craft Beer market imposed on catering channels is expected to rebound from rising consumption levels this year. During the epidemic, as the "Sit Home and Booze" culture grew, sales of spirits in stores and online increased worldwide, resulting in significant growth in the out-of-trade distribution sector.
This research report on the Europe craft beer market has been segmented and sub-segmented based on the following categories.
Europe Craft Beer Market – By Product Type:
Europe Craft Beer Market – By Distribution Channel:
Retail distribution refers to the sale of alcoholic beverages in restaurants, clubs, bars, pubs, and other distribution channels in the hotel industry. Commercial craft beer is more expensive than commercial beer. As a result, the craft beer market in developed countries is growing significantly due to the high growth of the hotel industry coupled with the high spending capacity of consumers. The on-trade distribution market is expected to show significant growth in developing and emerging economies due to the purchasing power of low to medium-priced consumers.
Europe Craft Beer Market – By Age Group:
On the basis of age-group, the 21-35 years segment is projected to hold the highest shares of the European craft beer market.
Europe Craft Beer Market – By Country:
Europe Craft Beer is expected to have the largest market share in terms of value and volume. Major companies are planning to expand in Europe due to the growing demand for craft beer in the region, which is expected to play an important role in the growth of the regional craft beer market in the future. Craft beer consumption is high in European countries such as the UK, Belgium, Germany, and the Czech Republic. This is due to the variety of flavors of the product due to the premium spirits made in Belgium and Germany. Belgium is the beer of choice among major craft beer consumers due to its superior quality, clean taste, rich flavor, and aroma. High consumption combined with consumer preference for flavored beer is expected to drive growth in the craft beer market over the forecast period. The German craft beer market holds the dominating share of the European market currently. United Kingdom craft beer market shares are propelled by increasing consumers of this spirit, accounting for more than 25% of their share of total revenue. It is also expected to have a positive impact on the European market as consumer awareness of different styles of beer increases and the penetration rate increases in countries such as Spain and France. The Spain craft beer market accounted for a substantial share of the European market in 2023 followed by UK. France is anticipated to hit the highest CAGR in the coming years.
KEY MARKET PLAYERS:
Companies playing a major role in the Europe craft beer market include Carlsberg Group, Anheuser-Busch InBev, Heineken N.V., Diageo PLC, Lasco Brewery, Erdinger Brewery, Radeberger Brewery, Oettinger Brewery, and BAVARIA N.V.
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