Beer Market By Type (Lager, Ale, Stout & Porter, Malt, and Others), By Packaging (Glass, Metal Can, and Others), By Production (Macrobrewery, Microbrewery, and Craft Brewery), By Region, By Competition Forecast & Opportunities 2018-2028F

Market Overview

The Global Beer Market has valued at USD659.01 billion in 2022 and is anticipated to project robust growth in the forecast period with a CAGR of 9.3% through 2028. The global beer market is a dynamic and ever-evolving industry that holds a special place in cultures around the world. With its rich history, diverse range of products, and an extensive global footprint, the beer market continues to be a significant player in the alcoholic beverage industry.

The global beer market is substantial in terms of both production and consumption. Factors contributing to this growth include a rising global population, urbanization, and an increasing middle-class segment with higher disposable incomes.

The beer market exhibits significant regional variations in consumption patterns and preferences. Traditional beer-producing countries like Germany, Belgium, and the Czech Republic maintain strong beer cultures and export their products worldwide. In recent years, emerging markets in Asia-Pacific and Latin America have experienced remarkable growth due to increasing urbanization and changing consumer preferences.

The craft beer movement has made a profound impact on the global beer market. Craft breweries, known for their artisanal and unique beer offerings, have gained popularity, particularly in North America and Europe. Consumers are increasingly seeking out craft beers for their quality, flavor diversity, and support for local businesses.

Changing consumer attitudes toward health and wellness have influenced the beer market. Some consumers are shifting away from traditional beer in favor of low-alcohol or alcohol-free options. Health-conscious consumers are also exploring beers made from organic ingredients or with fewer additives.

Premium and specialty beers have gained traction in the market. These include specialty styles, limited-edition releases, and beers with unique flavor profiles. Brewers are continuously innovating to meet the demands of adventurous consumers seeking novel taste experiences.

Sustainability is becoming a central concern in the beer industry. Breweries are adopting eco-friendly practices, such as reducing water usage and carbon emissions, and sourcing ingredients locally to minimize their environmental footprint. Consumers are increasingly gravitating toward brands that prioritize sustainability.

The beer market also faces challenges, including competition from other alcoholic beverages like wine and spirits, regulatory hurdles, and changing consumption patterns, particularly among younger consumers who may prefer alternatives to traditional beer.

Key Market Drivers

Changing Consumer Preferences and Craft Beer Movement

One of the primary drivers of the global beer market is the shifting preferences of consumers towards craft beer and innovative, unique beer offerings. Craft beer, characterized by its small-scale production, focus on quality, and diverse flavor profiles, has experienced explosive growth in recent years. This movement has been driven by consumers' desire for variety, authenticity, and premium products.

The craft beer revolution has not only reshaped the beer market but has also created opportunities for small and independent breweries globally. Consumers are increasingly seeking out locally brewed, artisanal beers, which has led to a surge in the number of craft breweries worldwide. This trend has fostered a vibrant beer culture, with consumers willing to pay a premium for craft beer experiences.

In response to this demand, even major breweries have diversified their product portfolios by acquiring or launching their craft beer brands. This competition and innovation within the industry have driven growth and kept the beer market dynamic.

Expansion in Emerging Markets

Another significant driver of the global beer market is the expansion into emerging markets, particularly in Asia and Africa. These regions have experienced rapid urbanization, a burgeoning middle class, and increasing disposable incomes. As a result, beer consumption in these markets has been on the rise, and multinational beer companies are eager to tap into this potential.

In Asia, for example, countries like China and India have witnessed a surge in beer consumption as younger populations embrace beer as a popular alcoholic beverage. These markets are seen as the next frontier for global beer brands, leading to substantial investments in production facilities, marketing, and distribution networks.

Moreover, cultural shifts and evolving consumer lifestyles in emerging markets have further fueled the demand for beer. Beer is often associated with social gatherings, and as these markets experience urbanization and globalization, the consumption of beer in social settings has become more prevalent.

Health and Wellness Trends and Low-Alcohol Options

While beer is often associated with indulgence and celebration, health and wellness trends have begun to influence the industry, driving the development and popularity of low-alcohol and non-alcoholic beer options. This shift reflects consumers' growing concerns about the negative health effects of excessive alcohol consumption and a desire for healthier alternatives.

Low-alcohol and non-alcoholic beers offer a way for consumers to enjoy the taste and experience of beer without the intoxicating effects of higher alcohol content. These products have gained traction as consumers seek balance between their social lives and their commitment to healthier lifestyles. Additionally, they appeal to a broader demographic, including those who may have avoided beer in the past due to health or dietary concerns.

Major beer producers have recognized this trend and have invested in the development of low-alcohol and non-alcoholic beer varieties. This diversification of product offerings aligns with the industry's response to changing consumer preferences and health consciousness.

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Key Market Challenges

Changing Consumer Preferences and Health Consciousness

As consumer preferences evolve, a notable challenge in the global beer market is the shift towards healthier lifestyles. Increasing health consciousness, particularly among younger consumers, has led to a decline in beer consumption in some regions. Many individuals are opting for lower-alcohol options, non-alcoholic beer, or alternatives such as craft beers and spirits. This shift has forced traditional beer companies to diversify their product portfolios to cater to these changing preferences.

Additionally, the rising popularity of health and wellness trends has raised concerns about the calorie content and potential health risks associated with excessive beer consumption. Regulatory measures and public health campaigns promoting responsible drinking further contribute to this challenge. Beer manufacturers must adapt by developing innovative, lower-calorie, and non-alcoholic beer options to remain relevant in a changing market.

Competitive Landscape and Craft Beer Revolution

The global beer market is highly competitive, with numerous established multinational beer corporations alongside a booming craft beer industry. The craft beer revolution, driven by consumer demand for unique and artisanal brews, presents both opportunities and challenges. Smaller craft breweries are gaining market share, often at the expense of larger, traditional beer producers.

Craft breweries are known for their quality, variety, and localization, which appeals to consumers seeking distinct flavors and experiences. This challenge forces large beer companies to innovate, acquire craft breweries, or develop their craft-style brands to remain competitive. Additionally, the craft beer industry faces its own set of challenges, including scalability issues, distribution challenges, and maintaining consistency while scaling up production.

Regulatory and Taxation Hurdles

The beer industry is subject to complex and varied regulatory frameworks and taxation policies worldwide. These regulations can significantly impact the production, distribution, and marketing of beer products. Challenges include:

High excise taxes on alcoholic beverages can lead to increased product prices, reducing consumer affordability and potentially limiting sales. Tax structures can vary significantly from one country to another, making it challenging for multinational beer companies to navigate.

Regulations on labeling, packaging, and advertising of alcoholic beverages can be strict and differ from region to region. Ensuring compliance with these regulations while maintaining brand identity can be challenging for beer manufacturers.

Many countries have government-controlled distribution systems and licensing requirements for alcohol sales. Navigating these systems can be cumbersome and costly, especially for smaller craft breweries looking to expand internationally. Some regions impose limits on the alcohol content of beer, which can impact the market for high-alcohol or specialty beer products.

Key Market Trends

Craft Beer Revolution

The global beer market has been witnessing a remarkable trend in recent years: the craft beer revolution. Craft beer refers to beer produced by small, independent breweries that focus on quality, flavor, and unique brewing techniques. This trend has gained significant traction worldwide and is reshaping the beer industry.

Craft breweries have been sprouting up across the globe, offering consumers a wide variety of beer styles and flavors. This trend is driven by consumers seeking more personalized and unique taste experiences. Craft breweries often experiment with ingredients, brewing methods, and flavors, resulting in a diverse range of beer options.

The craft beer movement challenges the dominance of large, traditional breweries, encouraging innovation and competition in the market. It appeals to a growing segment of consumers who prioritize quality, authenticity, and supporting local businesses. As a result, craft beer has seen impressive market growth, with sales surging in both established markets like the United States and emerging markets in Asia and Latin America.

Furthermore, craft beer has also sparked trends like beer tourism, with enthusiasts visiting breweries and brewpubs to taste fresh, locally brewed beer. The craft beer revolution is expected to continue evolving, with craft brewers pushing the boundaries of beer styles, flavors, and sustainability practices.

Health and Wellness in Beer Consumption

Another significant trend in the global beer market is the increasing focus on health and wellness. Consumers are becoming more health-conscious, and this shift in lifestyle choices is impacting their beer preferences.

Low-alcohol and non-alcoholic beer options have gained popularity as people seek beverages with fewer calories and lower alcohol content. These options cater to consumers who want to enjoy the taste of beer without the associated health risks or hangovers. Brewers have responded by developing a wide range of non-alcoholic and low-alcohol beer varieties that mimic the flavors of traditional beer.

Additionally, there is a growing demand for beers with perceived health benefits. Functional beers infused with ingredients like probiotics, vitamins, and antioxidants are emerging as a niche market segment. These beers aim to provide health-conscious consumers with added nutritional value while enjoying their favorite beverage.

Furthermore, the use of natural and organic ingredients in beer production aligns with the health and wellness trend. Brewers are incorporating organic grains and botanicals to create beers that are not only enjoyable but also perceived as healthier options.

Sustainable Brewing and Eco-Friendly Packaging

The global beer market is witnessing a significant shift towards sustainability and eco-friendliness. Brewers are increasingly adopting sustainable practices throughout the production process, from sourcing ingredients to packaging.

Sustainable brewing practices involve reducing water and energy consumption, minimizing waste, and sourcing ingredients responsibly. Breweries are investing in energy-efficient equipment, water recycling systems, and environmentally friendly brewing methods to reduce their carbon footprint.

Eco-friendly packaging has also become a prominent trend. Brewers are transitioning away from single-use plastic packaging towards more sustainable options like aluminum cans and glass bottles. Some breweries are even exploring innovative packaging materials such as biodegradable six-pack rings and cardboard packaging.

Consumer awareness of the environmental impact of their choices is driving the demand for sustainable beer products. Brands that prioritize sustainability and transparency in their operations are gaining favor among environmentally conscious consumers. This trend is not limited to the beer itself but extends to the entire supply chain, including transportation and distribution.

Segmental Insights

Type Insights

Lager, a type of beer characterized by its bottom-fermentation process and crisp, clean taste, holds a substantial share in the global beer market. Its popularity can be attributed to several factors that have contributed to its enduring presence and growth.

First and foremost, lager's global prominence is a testament to its versatility and wide-ranging appeal. Lager's relatively mild and refreshing flavor profile makes it accessible to a broad spectrum of consumers, from seasoned beer enthusiasts to occasional drinkers. This universality allows lager to cater to diverse tastes and preferences, positioning it as a go-to choice for many.

Furthermore, lager's production process, which involves cold fermentation and extended maturation periods, results in a consistently high-quality product. This quality assurance has made lager a reliable choice for consumers who seek a consistent and dependable beer experience. Breweries worldwide have mastered the art of producing lagers that consistently meet the expectations of their customer base.

Lager's success also stems from its adaptability to different regional and cultural contexts. It has proven to be a versatile canvas for innovation, with various substyles and regional variations emerging over the years. For instance, the light and crisp American lager differs from the malty and robust Märzen lager of Germany. These diverse interpretations allow brewers to tailor their lagers to local preferences, ensuring a strong market presence wherever they are sold.

Marketing and branding have played a pivotal role in lager's market share. Many iconic beer brands, both international and domestic, have built their reputations around lager offerings. These brands have invested heavily in marketing campaigns that emphasize the refreshing and sociable nature of lager, making it synonymous with relaxation, camaraderie, and good times. As a result, consumers often turn to lager when seeking an enjoyable and sociable drinking experience.

Production Insights

Macrobreweries, also known as large-scale breweries, undeniably hold a substantial share in the global beer market. Their dominance in this industry is a result of several key factors that have shaped the beer landscape on a global scale.

One of the primary reasons for macrobreweries' significant presence is their extensive production capacity. These breweries are equipped with large-scale facilities and advanced technology, allowing them to produce beer in massive quantities. This high production capacity enables them to meet the substantial demand for beer, both domestically and internationally. It also allows them to distribute their products efficiently to a wide range of markets, from local to global.

Furthermore, macrobreweries benefit from economies of scale, which gives them a competitive edge in terms of production costs. They can source ingredients, such as malt, hops, and water, in bulk, often at lower prices, leading to cost savings. This advantage allows them to offer beer at competitive prices, making it accessible to a broader consumer base.

Marketing and brand recognition play a crucial role in macrobreweries' success. These companies invest heavily in advertising and promotion, creating iconic brands that resonate with consumers worldwide. The power of their branding and marketing campaigns extends beyond national borders, giving them a strong presence in multiple countries. Iconic brands like Budweiser, Heineken, and Corona have become household names globally, contributing significantly to their market share.

Another factor contributing to the dominance of macrobreweries is their ability to adapt to changing consumer preferences. These breweries often introduce a wide range of beer styles, including lagers, ales, and specialty beers, ensuring they cater to diverse tastes. They also explore trends such as low-alcohol and non-alcoholic options, responding to consumers' increasing health-consciousness and preference for alternative beverages.

Additionally, the global distribution network of macrobreweries is a key driver of their market share. Their ability to export products efficiently to different regions and establish distribution partnerships worldwide allows them to tap into emerging markets with growing demand for beer.

Despite their dominance, macrobreweries face challenges, such as increased competition from craft breweries and changing consumer preferences toward locally produced and artisanal beers. However, these large-scale breweries continue to adapt and diversify their portfolios, acquiring craft breweries and expanding their offerings to maintain their share in the dynamic global beer market.

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Regional Insights

The Asia Pacific region has emerged as a significant player in the global beer market, and its share continues to grow steadily. The Asia Pacific region boasts a rapidly expanding middle-class population, primarily in countries like China and India. This demographic shift has led to increased consumer spending on discretionary items like alcoholic beverages, including beer. As more people in the region achieve higher disposable incomes, they are more inclined to explore different types and brands of beer, thereby driving market growth.

The Asia Pacific beer market is witnessing a shift in consumer preferences. While traditional beers still hold a significant share, there is a growing interest in craft and premium beers. This shift is driven by a desire for unique flavors and high-quality brews. As a result, craft breweries and international premium beer brands are gaining traction in the region. The rapid urbanization of many countries in the Asia Pacific has led to changes in lifestyle and social habits. Urban dwellers often have access to a wider variety of beer options, including bars, pubs, and restaurants that serve an array of domestic and imported beers. Social gatherings and nightlife have become more popular, contributing to increased beer consumption.

Both local and global beer producers are investing in expanding their distribution networks across the Asia Pacific. This includes establishing partnerships with local distributors, opening new retail outlets, and leveraging e-commerce platforms to reach a broader consumer base. These efforts have made a diverse range of beers more accessible to consumers in the region. Beer plays a significant role in the cultures and traditions of many Asia Pacific countries. Festivals and celebrations often involve the consumption of beer, further driving demand. For example, during the Chinese New Year or Diwali in India, beer sales typically surge as people gather to celebrate.

With a growing emphasis on health and wellness, there is also a rising interest in low-alcohol and non-alcoholic beer options. Many consumers are looking for alternatives that align with their health-conscious lifestyles. This trend has encouraged breweries to introduce new products catering to this demand.

Recent Developments

• In 2022, Fever-Tree launched Fever-Tree Blood Orange Ginger Beer, a new product within the Fever-Tree brand. Fever-Tree's Blood Orange Ginger Beer is crafted using carefully sourced natural ingredients, combining the delightful sweetness of Italian blood oranges with the robust, fiery flavor of their signature ginger beer, complemented by a proprietary blend of three distinct gingers.
• In 2022, VictoriaTM introduced Vicky Chamoy, a flavor-infused beer that tantalizes the palate with notes of sweetness, saltiness, spiciness, and sourness, to the United States. This Mexican-inspired beer, imported from Mexico, is conveniently available in a single-serve 24-ounce can.
• In 2022, Heineken Group, United Breweries, announced the launch of Heineken Silver, a distinguished addition to the renowned Amsterdam-based Heineken group of brands. Expertly brewed by seasoned master brewers, Heineken Silver embodies the finest natural ingredients, including A-yeast and pure malt.
• In 2022, Anheuser-Busch InBev introduced Seven Rivers, an exciting new beer, to the Indian market. This brand shares the same pedigree as Budweiser, Corona Extra, and Hoegaarden. Initially available in select regions of Karnataka and Maharashtra, this innovative product is poised to expand its presence to states such as Delhi, Goa, Haryana, and Uttar Pradesh in the near future.

Key Market Players

• Asahi Group Holdings, Ltd.
• Beijing Yanjing Beer Group Corporation
• Carlsberg Group
• Diageo plc
• Dogfish Head Craft Brewery Inc.
• Heineken N.V.
• Sierra Nevada Brewing Co.
• Grupo Modelo
• United Breweries Limited (UBL)
• Kirin Holdings Company Limited

Report Scope:

In this report, the global beer market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

• Global Beer Market, By Type:

o   Lager

o   Ale

o   Stout & Porter

o   Malt

o   Others                                  

• Global Beer Market, By Packaging:

o   Glass

o   Metal Can

o   Others                                                     

• Global Beer Market, By Production:

o   Macrobrewery

o   Microbrewery

o   Craft Brewery                                                                                                                      

• Global Beer Market, By Region:

o   North America

§  United States

§  Canada

§  Mexico

o   Asia-Pacific

§  China

§  India

§  Japan

§  South Korea

§  Australia

o   Europe

§  Germany

§  France

§  United Kingdom

§  Italy

§  Spain

o   South America

§  Brazil

§  Argentina

§  Colombia

o   Middle East & Africa

§  Saudi Arabia

§  UAE

§  South Africa

§  Turkey

Competitive Landscape

Company Profiles: Detailed analysis of the major companies present in the global beer market.

Available Customizations:

Global Beer Market report with the given market data, Tech Sci Research offers customizations according to a company's specific needs. The following customization options are available for the report:

Company Information

• Detailed analysis and profiling of additional market players (up to five).

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