Lager Market – Global Industry Size, Share, Trends, Opportunity, and Forecast, Segmented By Product Type (Standard, Premium), By Sales Channel (Supermarkets and Hypermarkets, Specialist Retailers, Convenience Stores, Online, Others), By Region, By Competition, 2018-2028

Market Overview

Global Lager Market has valued at USD 342.4 Billion in 2022 and is anticipated to project robust growth in the forecast period with a CAGR of 2.9% through 2028. The global lager market continues to be a prominent and influential sector within the broader beer industry. Lager, a type of beer characterized by its cold fermentation and crisp taste, maintains a strong and stable demand worldwide. It is particularly popular in regions like Europe, North America, and parts of Asia, where it is often the beer of choice for many consumers.

One notable trend in the global lager market is the influence of craft beer. Craft breweries, known for their emphasis on quality, unique flavors, and small-scale production, have introduced innovative lager variations, offering consumers a wider range of options. This trend has encouraged established breweries to diversify their lager offerings and experiment with new flavors and brewing techniques to compete effectively.

Regional preferences continue to shape the market, with different countries having their own distinctive lager styles. For instance, the Czech Republic is famous for its Pilsner lagers, while Germany is known for its Bock and Helles lagers. The United States, on the other hand, has seen a surge in the popularity of light lagers, driven by large-scale breweries.

In conclusion, the global lager market remains a robust and dynamic segment within the brewing industry. Consumer demand, craft beer influence, and regional variations contribute to the ongoing competitiveness and innovation in the lager market. As the beer industry evolves, lager continues to hold its place as a staple choice for beer enthusiasts worldwide.

Key Market Drivers

Changing Consumer Preferences

One of the primary drivers of the global lager market is evolving consumer preferences. Lager is known for its crisp, refreshing taste and wide appeal. Consumers often choose lager as their preferred beer style due to its approachability and relatively low bitterness compared to ales and other beer types. However, consumer tastes are continually evolving. With a growing interest in diverse flavor profiles and craft beer, consumers are increasingly seeking unique and innovative lager variations. Breweries are responding by experimenting with different ingredients, such as fruits, spices, and aging processes, to cater to these changing preferences.

Craft Beer Influence

The craft beer movement has made a profound impact on the global lager market. Craft breweries, characterized by their small-scale, artisanal approach to brewing, have challenged the dominance of major lager producers by offering consumers a wide range of high-quality lagers. These craft lagers often emphasize unique flavors, locally-sourced ingredients, and traditional brewing techniques. Craft brewers are known for their willingness to experiment with lager styles, leading to the creation of innovative and exciting options that cater to a niche market seeking more complexity in their lager choices. This influence from craft beer has encouraged established breweries to diversify their lager offerings and engage in creative brewing practices to stay competitive in the market.

Regional Variations and Preferences

Lager, like many other beer styles, exhibits significant regional variations and preferences. Different countries and regions have developed their own distinct lager styles that cater to local tastes and traditions. For example, the Czech Republic is renowned for its Pilsner lagers, which are known for their pale, golden color and balanced bitterness. Germany is famous for Bock and Helles lagers, offering a range from strong, malty Bocks to the light and refreshing Helles. The United States, on the other hand, has seen a surge in the popularity of light lagers, driven by large-scale breweries. These regional preferences play a vital role in shaping the global lager market, with breweries adapting their offerings to appeal to local tastes and cultural nuances.

Marketing and Branding Strategies

Effective marketing and branding strategies play a significant role in driving the global lager market. Large breweries often invest heavily in marketing campaigns and brand development to maintain and expand their market share. These strategies include sponsorships of sports events, music festivals, and other cultural activities, as well as creating distinct brand identities and memorable packaging. Marketing efforts also extend to digital platforms, where breweries engage with consumers through social media, e-commerce, and online advertising. In contrast, craft breweries leverage their smaller, more personal scale to develop authentic and engaging branding, emphasizing their commitment to quality and uniqueness. The way lager brands are presented to consumers has a direct impact on their popularity and sales.

Health and Wellness Trends

In recent years, health and wellness trends have affected consumer choices and, consequently, the lager market. As consumers become more health-conscious, they are looking for alcoholic beverages that align with their well-being goals. This trend has led to the emergence of low-alcohol and non-alcoholic lagers, which provide the familiar lager taste without the associated alcohol content. Breweries have responded to this demand by developing a range of non-alcoholic lagers that cater to consumers seeking to enjoy the flavor and experience of lager while avoiding the effects of alcohol. This trend is likely to continue influencing the global lager market, as breweries explore ways to create lagers with reduced calorie and carbohydrate content to meet the demands of health-conscious consumers.

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Key Market Challenges

Competition from Craft Beer

One of the most significant challenges facing the global lager market is the relentless competition posed by the craft beer movement. Craft breweries, often defined by their smaller scale, emphasis on quality, and commitment to innovation, have gained substantial market share over the past few decades. Craft brewers are known for their ability to produce unique, flavorful lagers that cater to the evolving tastes of discerning consumers. As a result, many beer enthusiasts are shifting their preferences from mass-produced lagers to the craft alternatives, seeking variety and distinctive taste experiences.

This competition has compelled major lager producers to adapt and innovate. Large breweries are now exploring ways to capture the craft beer ethos by developing specialty lagers with unique flavors and ingredients. They have also engaged in mergers and acquisitions, acquiring craft breweries to extend their product portfolios and access niche markets. Despite these efforts, the challenge of competing with craft beer's authenticity, creativity, and loyal following persists, forcing traditional lager producers to continually reinvent their strategies.

Health and Wellness Trends

Health and wellness trends have become increasingly influential in shaping consumer preferences, and they pose a significant challenge to the global lager market. With more individuals focusing on their well-being, there's a growing demand for low-alcohol and non-alcoholic beverage options. As a result, traditional lagers, which typically have moderate to high alcohol content, face competition from these emerging categories.

The demand for non-alcoholic and low-alcohol lagers is growing steadily, driven by consumers who seek the flavor and experience of beer without the associated effects of alcohol. To address this challenge, breweries have begun to develop and market non-alcoholic and low-alcohol lagers that cater to this health-conscious segment. While this diversification is essential, it requires breweries to invest in research and development to create products that maintain the taste and quality of traditional lagers. The challenge lies in striking a balance between offering healthier options while preserving the essence of lager.

Changing Consumer Preferences

Consumer preferences are continually evolving, driven by a variety of factors, including taste trends, cultural shifts, and socioeconomic influences. These changing preferences challenge lager producers to adapt to shifting market dynamics. For example, consumers are increasingly seeking more diverse and unique flavors in their beer choices, driven in part by the popularity of craft beer. They are also showing interest in international beer styles, such as IPAs and stouts, further diversifying their beverage options.

Additionally, the rise of health-conscious consumers has resulted in the demand for lighter and lower-calorie lagers. This trend encourages breweries to innovate by creating new lager styles that align with the evolving preferences. The challenge for lager producers is to keep up with these dynamic changes and develop products that resonate with an increasingly diverse customer base. Meeting these shifting preferences often requires substantial investments in research, development, and marketing to maintain market share and customer loyalty.

Sustainability and Environmental Concerns

The global beer industry, including the lager market, is facing growing scrutiny and challenges related to sustainability and environmental concerns. Brewing beer requires substantial resources, including water, energy, and raw ingredients, making breweries significant contributors to environmental impacts. Many consumers are now more conscious of these issues and are seeking out eco-friendly and sustainable products.

The challenge for lager producers is to address these concerns by implementing sustainable practices in their production processes. This may include reducing water usage, energy consumption, and greenhouse gas emissions, as well as using environmentally responsible packaging materials. Breweries that prioritize sustainability and communicate their efforts to consumers can gain a competitive edge in a market increasingly focused on environmental responsibility.

Moreover, breweries must also adapt to changing regulations related to environmental sustainability. In some regions, governments are imposing stricter environmental regulations on brewing operations, necessitating investment in equipment and processes that reduce their ecological footprint. These adjustments can pose financial challenges for breweries and may impact pricing and profitability.

Key Market Trends

Craft Lager Revolution

The craft beer movement, which has been transforming the global beer industry, is making a significant impact within the lager market. Craft breweries, known for their focus on quality, small-scale production, and creative flavor profiles, are increasingly turning their attention to lagers. While ales have traditionally dominated the craft beer scene, craft brewers are now experimenting with lager styles, offering a wider range of choices to consumers who prefer the clean, crisp profile of lagers. This trend has led to the creation of unique and innovative craft lagers, using unconventional ingredients and aging processes, challenging the dominance of mass-produced lagers. As craft breweries continue to diversify their lager offerings, they are likely to capture a more significant share of the lager market.

Globalization of Lager Styles

Lager, like other beer styles, is experiencing globalization. With the increasing accessibility of information and international travel, consumers are exposed to various lager styles from around the world. Regional lager styles, such as Pilsner, Bock, Helles, and Vienna lagers, are becoming popular in countries where they were once unfamiliar. For instance, American craft breweries have embraced traditional European lager styles and added their own twists to create unique lager variations. This trend promotes a diverse range of lager options for consumers and encourages breweries to experiment with global beer traditions, fostering cross-cultural influence within the market.

Innovation in Flavor Profiles

Lager, often associated with a clean and refreshing taste, is not immune to the demand for innovative flavor profiles in the beer industry. While traditional lagers remain popular, consumers are increasingly seeking unique and flavorful experiences. To meet this demand, breweries are experimenting with a wide range of ingredients, from fruits and spices to unconventional grains and hops, to create lagers with distinctive tastes. These flavored lagers offer a departure from the traditional, mild lager profile, appealing to consumers looking for a more complex and adventurous beer experience. The innovation in flavor profiles is not limited to craft breweries; even major lager producers are launching specialty lagers to stay competitive and cater to evolving consumer preferences.

Sustainability and Environmental Responsibility

Sustainability is an overarching trend in the beverage industry, and the lager market is no exception. Breweries are increasingly focusing on reducing their environmental impact by implementing sustainable practices in their operations. This includes reducing water usage, adopting energy-efficient brewing methods, and using eco-friendly packaging materials. Sustainability efforts are not only driven by consumer demand but are also influenced by tightening regulations and the industry's commitment to reducing its ecological footprint. Breweries that prioritize sustainability not only benefit from a positive public image but also reduce operational costs in the long run. This trend is likely to persist and grow as more breweries recognize the importance of environmental responsibility.

Health and Wellness-Focused Lagers

Health and wellness trends are shaping consumer preferences in the global lager market. An increasing number of consumers are looking for lower-calorie, low-alcohol, and non-alcoholic beverage options. This trend has led to the development of non-alcoholic and low-alcohol lagers that cater to those who want to enjoy the flavor of lager without the effects of alcohol. Breweries are investing in the creation of such products, often through innovative brewing methods that preserve the taste and quality of traditional lagers. This segment is growing steadily, offering breweries an opportunity to tap into the health-conscious market and provide a wider range of choices for consumers who are seeking balanced lifestyles.

Premiumization and Craft Lager Pricing

The premiumization trend in the beer industry has extended to the lager market. Consumers are willing to pay more for lagers with perceived higher quality and unique characteristics. Craft lagers, in particular, are often associated with premium pricing due to their focus on quality, small-batch production, and distinctive flavors. This trend has encouraged traditional lager producers to create premium lagers by incorporating innovative brewing techniques, using premium ingredients, and enhancing their branding. While the mass-produced lagers remain popular due to their affordability and wide availability, premium lagers have found their niche among consumers who are willing to invest in a more unique and exclusive beer experience.

Segmental Insights

Product Type Insights

The premium segment in the global lager market is experiencing significant growth and has become a noteworthy trend in recent years. Consumers are increasingly willing to pay a premium for lagers that offer distinct characteristics, higher quality, and a unique beer-drinking experience.

Craft breweries, in particular, have played a pivotal role in driving the premiumization trend. Craft lagers, characterized by their artisanal production methods, creative flavors, and a commitment to quality, are often priced at a premium compared to mass-produced lagers. These craft lagers have found a dedicated following among consumers seeking a more elevated and distinctive beer experience. They are willing to invest in these premium products as a reflection of their appreciation for craftsmanship and their desire for a more refined taste.

The premiumization of lagers has also influenced established breweries, encouraging them to develop premium offerings. These lagers may incorporate innovative brewing techniques, use high-quality ingredients, and have more sophisticated packaging and branding. By elevating their product lines, traditional lager producers can appeal to consumers who are willing to explore premium options.

As the premium lager segment continues to grow, it not only caters to consumers' demand for quality and unique beer experiences but also fosters innovation and diversity within the lager market. Breweries are keen to tap into this trend by offering a broader range of premium lagers, ensuring that the premiumization of lagers remains a significant and evolving aspect of the global beer industry.

Sales Channel Insights

The online segment is rapidly emerging as a pivotal and fast-growing dimension within the global lager market. Accelerated by the widespread adoption of e-commerce and shifting consumer behaviors, online sales of lagers have seen a notable upswing. This trend is characterized by the convenience and accessibility that online platforms provide to consumers, allowing them to explore and purchase a diverse range of lagers from the comfort of their homes.

The online lager market is particularly advantageous for smaller and craft breweries, providing them with a virtual storefront to reach a broader audience beyond their local markets. Craft lagers, with their emphasis on unique flavors and limited production runs, have found a receptive audience online, allowing these breweries to connect with consumers seeking variety and niche options.

Major lager producers are also leveraging e-commerce platforms to extend their reach and accessibility. Online sales not only cater to a growing segment of tech-savvy consumers but also offer a channel for breweries to showcase their entire product range, including specialty and premium lagers.

Moreover, the online segment allows for direct-to-consumer sales, enabling breweries to establish a more intimate connection with their customer base. Online platforms facilitate the sharing of information about the brewing process, the story behind each lager, and even virtual tastings, fostering a sense of community among beer enthusiasts.

As technology continues to reshape the retail landscape, the online segment in the lager market is poised to expand further, driven by the convenience-seeking behaviors of consumers and the increasing digitalization of commerce. Breweries that strategically navigate this digital landscape stand to benefit from the broader market reach, direct consumer engagement, and the overall growth potential that the online segment presents within the global lager market.

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Regional Insights

Europe is emerging as a significant and growing segment within the global lager market. The continent boasts a rich beer heritage, with a long-standing tradition of lager production, making it a focal point for the industry's development.

One notable trend is the resurgence of craft lagers throughout Europe. Craft breweries, often characterized by their small-scale production and emphasis on unique flavors and high-quality ingredients, have gained traction in the region. This craft lager movement is driven by a desire for diverse and distinctive beer options, which aligns with the evolving preferences of European consumers. As a result, craft lagers have carved a niche for themselves in a market traditionally dominated by mass-produced lagers.

Additionally, premium lagers have gained popularity in Europe. Consumers are increasingly willing to invest in lagers that offer superior quality, innovative flavors, and refined drinking experiences. This premiumization trend has created opportunities for breweries to develop high-end lagers that cater to the demand for sophistication and distinctiveness.

The sustainability movement is another driving force in the European lager market. Eco-friendly brewing practices, reduced carbon footprints, and sustainable sourcing of ingredients have become focal points for both craft and established breweries. The emphasis on environmental responsibility resonates with European consumers who value ecological and ethical considerations in their purchasing decisions.

In conclusion, Europe is not only embracing the craft lager revolution but also showcasing a preference for premium and sustainable lagers. These trends reflect the continent's dynamic beer culture and the evolving demands of its consumers. As Europe continues to play a pivotal role in the lager market, breweries are well-positioned to innovate and respond to these trends, ensuring the growth and diversification of the European segment within the global lager market.

Recent Developments

• In 2022, Bira91 recently announced the launch of Rise, India’s first-ever premium rice strong lager, made in the Asian tradition. Elevated with local rice from India, the beer is dry, light on the palate and has a brilliant sparkle.
• In 2023, Craft beer maker Lone Wolf expands portfolio, launches two new variants.

Key Market Players

• Anheuser-Busch Companies LLC
• Asahi Breweries Ltd.
• Carlsberg Breweries A/S
• China Resources Beer (Holdings) Company Limited
• Diageo Plc
• Heineken N.V.
• Kirin Brewery Company Limited
• Molson Coors Beverage Company
• Tsingtao Brewery Company Limited
• United Breweries Holdings Limited

Report Scope:

In this report, the Global Lager Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

• Lager Market, By Product Type:

o   Standard

o   Premium

• Lager Market, By Sales Channel:

o   Supermarkets and Hypermarkets

o   Specialist Retailers

o   Convenience Stores

o   Online

o   Others

• Lager Market, By Region:

o   North America

§  United States

§  Canada

§  Mexico

o   Europe

§  France

§  United Kingdom

§  Italy

§  Germany

§  Spain

o   Asia-Pacific

§  China

§  India

§  Japan

§  Australia

§  South Korea

§  Indonesia

o   Middle East & Africa

§  South Africa

§  Saudi Arabia

§  UAE

§  Turkey

o   South America

§  Argentina

§  Colombia

§  Brazil

Competitive Landscape

Company Profiles: Detailed analysis of the major companies present in the Global Lager Market.

Available Customizations:

Global Lager 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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