Lager Market

Global Lager Market Size (2024 to 2029)

As per our analysis report, the global lager market is expected to reach USD 351.69 billion by 2029 from USD 297.55 billion in 2024, growing at a compound annual growth rate (CAGR) of 3.4 % during the forecast timeline.

Lager is a type of beer marked by its crisp, clean flavor and pale, golden color. It is brewed at low temperatures with bottom-fermenting yeast strains. In comparison to ales, this cold fermentation process of producing lager creates a smoother, less fruity flavor profile. Lagers are known for their balanced flavors that are both a little bitter from the hops and slightly sweet from the malt. Pilsner, Marzen, and Helles are among the varieties, each with unique and special qualities. Lager's worldwide appeal can be attributed to its accessibility and adaptability, which make it a preferred beverage for both regular beer drinkers and enthusiasts. It is usually drunk chilled and goes well with any sort of dish.

The growing innovation and the demand for health-conscious varieties offer demand-influencing opportunities for the lager market. Lager producers can take advantage of these opportunities by developing unique lager flavors using innovative ingredients and methods, attracting novel taste experiences. Also, the making of lagers with low calories, low alcohol content, and no alcohol appeals to people seeking healthy or alcohol-free beer options and is in sync with current wellness trends. Lagers' appeal to health-conscious consumers can be boosted by clear nutritional labeling and educational initiatives, and their market presence can be further increased by collaborations with wellness organizations or the addition of beneficial ingredients. Health-conscious consumers are also drawn to sustainability projects, making eco-friendly lagers a better choice for both people and the environment. Hence, lager manufacturers can diversify their product lines, pull in a new consumer base, and stay competitive in the ever-changing beer industry by taking into consideration these developments.

Global Lager Market Drivers:

The lager market growth is significantly influenced by shifting consumer preferences. A rise in demand for these alternatives is likely attributed to consumers' increased health consciousness and preference for lower-calorie and lighter beer varieties like lagers. Breweries have adopted eco-friendly practices in response to sustainability concerns and public concern for the environment. Additionally, the digital age has changed how people purchase lager through e-commerce, providing ease and a wider selection. These shifting preferences demonstrate the need for lager manufacturers to innovate, adapt, and align their offers with consumers' shifting preferences and values to stay competitive in this dynamic market. This attribute is majorly influencing the market demand.

Another important factor driving lager market growth is the rising beer consumption among females. This trend can be connected to changing social norms, developing promotional strategies that cater to female tastes, health-conscious preferences for lower-calorie options, the inclusion of beer in cultural events, educational initiatives, and increased awareness of beer varieties. While this development offers opportunities for market demand, it also highlights the need to promote responsible drinking practices and take into account any potential health and societal effects of increased alcohol use among females across all age groups. Hence, there is a boost in the market size expansion as the demand for beers among females grows.

Global Lager Market Restraints:

The surging competition from other beverages available on the market is a notable restraint to the lager market demand. Consumers today have a wide variety of alternatives beyond lagers because of their more diverse and health-conscious tastes, including spirits, craft cocktails, non-alcoholic alternatives, and drinks with a focus on well-being. The increased competition makes it difficult for lagers to hold onto their market share and credibility. Some drinkers have switched to non-alcoholic and low-alcoholic beverages in addition to creative cocktails and spirits, which have become increasingly popular. This factor highly restricts the market demand and hence contributes to the decline in the shares of the market.

The growing health concerns among consumers further raise the challenges for the lager market expansion. As consumer wellness becomes more important, they may restrict their consumption of lager or choose other lower-calorie and lower-alcohol substitutes. Due to the numerous health concerns associated with excessive alcohol consumption, people are being more careful about choosing beverages these days. People are additionally looking for clear product labels and healthier ingredients, which could have an impact on traditional beers like lagers. Overall, these rising health concerns are limiting market demand.

Impact of COVID-19 on the Lager Market:

Several markets faced challenges during the COVID-19 pandemic, including the lager market. Due to lockdowns and various restrictions during this period, bars and restaurants closed, which led to a decline in the market demand as they are one of the major distribution channels. Also, the economic uncertainty during the pandemic harmed the consumption of lager among many people. Further, the disruptions in the production and distribution networks due to the limited availability and supply of raw materials influenced the market growth negatively during the pandemic.

REPORT COVERAGE:

This research report on the global lager market has been segmented and sub-segmented based on price point, packaging type, distribution channel, and region.

Global Lager Market - By Price Point:

• Popular Priced
• Premium
• Luxury

By type, the premium segment is ruling the larger market share during the forecasted period. Premium lagers are of high quality as they are made with high-quality ingredients, specific flavor characteristics, and sometimes traditional or artisanal brewing processes. Premium lagers cater to customers who seek a more refined and unique beer experience by providing numerous flavors, tastes, and qualities beyond what regular lagers generally offer. This attribute creates a higher demand for this segment. However, the luxury segment is expected to grow quickly during the projected period.

Global Lager Market - By Packaging Type:

• Glass
• Metal Cans
• Others

By Packaging, the glass segment is anticipated to rule the lager market share during the projected period. Lagers are typically packed in glass bottles due to various benefits, including preserving the flavor of the lager, avoiding light exposure, and offering a pleasing display. Glass bottles of lager are available in a variety of sizes, from standard 12-ounce bottles to bigger dimensions, to meet diverse consumer preferences. These attributes are pushing the demand for this segment. At the same time, the metal cans segment is expected to gain significant market share in the upcoming years. Owing to their portability, convenience, and protection from light and oxygen, they can help maintain lager quality. Lagers in cans are often associated with outdoor activities, picnics, and other occasions where it might not be possible to carry around glass bottles. Cans are also lightweight and recyclable, following up with current trends of environmentally friendly practices. These factors are boosting the shares of the market.

Global Lager Market - By Distribution Channel:

• On-trade
• Off-trade

By distribution channel, the off-trade segment dominates the larger market share during the anticipated period. This includes supermarkets, liquor stores, convenience stores, and online retailers. Consumers can choose from a wide variety of lager options in this market, whether in bottled, canned, or bulk formats, to enjoy at home or in places other than typical pubs, bars, and restaurants. This attribute is majorly contributing to an increase in sales for this segment. At the same time, the on-trade segment is deemed to grow at the fastest rate during the forecasted period. In this segment, lagers are distributed and sold in places like bars, restaurants, pubs, and clubs where alcoholic beverages are in great demand, influencing the market expansion.

Global Lager Market - By Region:

• North America
• Europe
• Asia-Pacific
• Latin America
• Middle East and Africa

By region, Europe region is anticipated to dominate the lager market share during the projected period. With an extended brewing tradition and a variety of lager methods, this is a significant region for the lager demand. Lager production is prevalent in countries like Germany, France, Italy, and the UK, each of which offers unique varieties, including Pilsner, Helles, and Witbier. This factor is promoting market expansion in this region. However, the Asia Pacific region is expected to grow at a healthy CAGR during the forecasted period. To satisfy the growing demand, both local and international beer brands have increased their market share in this region. The large customer base and the emergence of novel beer trends, such as the rising appeal of craft lagers, significantly contribute to market growth. This region continues to offer major opportunities for lager producers as urbanization and disposable incomes rise.

KEY MARKET PLAYERS:

Major Key Market Players in the global lager market are Heineken N.V., Carlsberg Group, Anheuser-Busch Companies, LLC, China Resources Snow Breweries Limited, Diageo, Molson Coors Brewing Company, Tsingtao Brewery Company Limited, ASAHI BREWERIES, LTD., Castel Group, and Kirin Brewery Company.

RECENT HAPPENINGS IN THE MARKET:

• In 2021, Heineken 0.0, a non-alcoholic lager that offers the same taste and quality as its alcoholic equivalent, was introduced by Heineken N.V. It was introduced to meet the rising demand among health-conscious consumers for low- and non-alcoholic beers.
• In 2020, Tsingtao Brewery Co. Ltd. introduced Tsingtao Pure Draft, a brand-new lager with a smooth, energizing flavor to meet the rising customer demand for premium beers.