March 1, 2024
Beer Market

The Growing Demand For Craft Beer Is Projected To Boost The Growth Of The Global Beer Market

Beer is one of the most popular alcoholic beverages consumed worldwide. It is brewed from cereal grains—most commonly from malted barley, though wheat, maize (corn), and rice are also used. Beer has a golden or brown appearance and is carbonated and bitter in taste due to hops addition. It comes in several varieties based on alcohol by volume such as regular, strong, light, non-alcoholic, among others. The demand for craft beer is increasing rapidly, as consumers are getting attracted towards unique flavors, tastes and enthusiasm for independently brewed alcohol products.

The global Beer Market is estimated to be valued at US$ 821.36 Bn in 2023 and is expected to exhibit a CAGR of 3.4% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.

Market key trends:

The global beer market is witnessing significant growth, owing to increasing demand for low-alcohol and no-alcohol beers. Changing lifestyle and health awareness among consumers is propelling the demand for low-alcohol beers. Moreover, increasing demand for craft and specialty beers is also contributing to the market growth. The craft beer segment is growing at a higher rate compared to regular beer, primarily in North America and Europe. Manufacturers are coming up with innovative packaging solutions and unique flavors to attract more consumers. Furthermore, the rising number of brewpubs, craft breweries, and aggressive marketing strategies by key players are boosting the beer market growth globally. However, stringent government regulations regarding alcohol consumption and campaigns against alcoholism by various healthcare organizations may hamper the market expansion over the forecast period.

Porter’s Analysis

Threat of new entrants: The Global Beer Market Size requires high capital investments and established distribution networks. This poses significant barriers for new entrants.

Bargaining power of buyers: Buyers have moderate bargaining power due to the availability of substitutes and variety of product options from existing players.

Bargaining power of suppliers: Suppliers of raw materials like hops, malt, and barley have moderate bargaining power.

Threat of new substitutes: Substitutes like spirits, wine, and other alcoholic beverages pose threats to the beer market.

Competitive rivalry: The market is highly competitive with the presence of global and local players competing on the basis of offerings, pricing, and promotion.

Key Takeaways

The global beer market is expected to witness high growth, exhibiting CAGR of 3.4% over the forecast period due to increasing social gatherings and recreational activities. The market size is projected to reach US$ 1.14 tn by 2030 from US$ 821.36 bn in 2023.

Regionally, Asia Pacific dominates the global beer market and is expected to grow at the highest CAGR during the forecast period. Increasing disposable incomes and growing socialization in countries like China and India are driving the regional market. Europe is also a key region where Germany accounts for the largest share.

Key players operating in the beer market are Anheuser-Busch InBev, Beijing Enterprises Holdings Limited, Carlsberg Group, Diageo PLC, Dogfish Head Craft Brewery, Inc, Heineken Holding NV., Squatters Pubs and Craft Beers, Sierra Nevada Brewing Co., The Boston Beer Company, Inc, and United Breweries Limited. Players compete on the basis of product quality, variety, production capacity, distribution network, and promotional activities.

*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it