The global craft beer market size is anticipated to reach USD 502.9 billion by 2025, according to a report by Grand View Research, Inc. The industry is projected to advance at a CAGR of 19.9% during this period. This growth is expected to be aided by the rising demand for low alcohol by volume (ABV) and flavored beer across the world. The governments in a number of countries such as Australia, New Zealand, Belgium, Mexico, China, and the UK are promoting craft beer production, along with the incorporation of new breweries, which has created a positive outlook for the market. Furthermore, the craft beer industry plays a significant role in the economic development and employment generation in a country. The growing awareness among the consumers with respect to the wide range of flavors and styles of the craft beer has created numerous growth avenues for the industry players in recent years.
Australia, Belgium, Germany, the U.S. and New Zealand are the major craft beer producing countries with over 65% of the overall production, in terms of value as well as volume. Belgian beer is the most preferred among the major craft beer consuming countries owing to the premium quality, clean taste, and rich flavor & aroma of the brews. The number of brewers in the global market is growing significantly on account of the rising product demand. This has resulted in a substantial increase in demand for grains such as barley, wheat, yeast, sugar, and hops. However, the alternative applications of these raw materials are expected to lower the bargaining power of the brewers. The demand for pale ale, IPA, and amber ale is growing as these three craft products are widely preferred by the consumers due to the balanced composition of the raw materials in the product.
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Further key findings suggest:
1 On-trade distribution of craft beer, which includes sales in bars, restaurants, clubs, and pubs, among others, accounted for over 50% of the overall volume share in the craft beer market in 2015, spearheaded by developed economies such as the UK, Australia, and Belgium
2 Europe is expected to account for the largest share in the craft beer market over the forecast period in terms of volume, owing to the high consumer preference for flavored beer over other alcoholic spirits
3 Middle East & Africa is projected to advance at a substantial CAGR of 28.9% owing to the increasing penetration of craft beer in South Africa, on account of growing consumer awareness about the wide range of product flavors and styles
4 Sales of craft beer showed positive trends in the US in 2019, as per data from Brewers Association. Craft brewer sales accounted for 13.6% of the US beer market in terms of volume, with the total number of craft breweries in 2019 (8275) increasing by 9.1% from 2018 (7594)
5 Key players in the craft beer industry such as The Boston Beer Company, The Gambrinus Company, D.G. Yuengling and Son, Stone & Wood Brewing Co. and Chimay Beers and Cheeses compete through acquisitions and increasing their product portfolio
6 The coronavirus pandemic had a telling impact on the craft beer market, as government-imposed lockdowns led to major loss of revenue for the beer industry; for instance, the Boston-based Harpoon Brewery lost 35% of its production volume due to curtailment of physical operations. Industry players have tried to navigate through this period by utilizing online platforms and virtual innovations, which is expected to add another aspect to market growth
7 In March 2020, New Belgium Brewing released the New Belgium Sour IPA, which involves a hazy IPA base with the addition of a 20-percent blend of a wood-aged golden sour from the company’s traditional foeders
Grand View Research has segmented the global craft beer market on the basis of distribution and region:
Craft Beer Distribution Outlook (Volume, Billion Liters; Revenue, USD Billion, 2014 - 2025)
Craft Beer Region Outlook (Volume, Billion Liters; Revenue, USD Billion, 2014 - 2025)
o New Zealand
Central & South America
Middle East & Africa
o South Africa
About Grand View Research, Inc.:
Grand View Research is a U.S. & India-based market research and consultancy firm. It is headquartered in San Francisco. We provide business insights, syndicated research reports, and customized research reports to large as well as small and medium-scale enterprises. Our database features thousands of statistics and in-depth analyses on more than 45 industries. Grand View Research’s extensive database is used by Fortune 500 companies to understand the regional as well as the global business environment.