As per the MRFR analysis, Global Craft Beer Market is projected to witness at the CAGR of 7.02 % and it is projected to reach USD 135.54 Billion during the period of 2017 to 2023.
Craft beer market holds huge opportunity with the increasing popularity of craft beer as one of the famous beverages, the number of breweries have increased to meet the increased demand from consumer’s side. Craft beer is found to be the third most popular drink after water and tea and its consumption is found to be high especially amongst the population of youth. Craft beer has gained its popularity as consumers want to keep experimenting with the various available flavours of beer. High focus on R & D sector has led to innovations in product line of the craft beer. New varieties and product development have attracted more consumers towards the craft beer and its sale surged globally. For instance, coffee flavoured beer and blended beer are found to have high popularity in the Europe. In addition, since the blending tend to lower the shelf-life of the product, they are manufactured and retailed under the craft beer verities. U.S., U.K., Germany and France are amongst the major developed countries holding a major share in the craft beer market. Branding and promotion of flavoured variety of craft beer is supporting its sale on a global level. Market Research Future, a firm which specializes in market research reports related to the Food, Beverages & Nutrition sector among others, recently forecasted in its report on Global Craft Beer Market Research Report- Forecast to 2022 that the market will demonstrate an exceptional CAGR % while achieving billion dollar growth readily in the forecast period.
Due to the various health benefits associated to Craft Beer consumption over traditional beers, the market is growing at an incremental pace of development globally. With growing consumers’ health awareness and pursuit of healthy attributes along with demographic trends in high growth markets where youth is primarily interested and attracted to spend on craft beer consumption owing to higher disposable income , market players keeping their focus to tap the unexplored market horizons and leverage on these market opportunities. Globalization and urbanization has significantly affected the composition of human diets and this urban life with major influence of western culture encourages the consumption and use of goods with nutritional benefits. Changing lifestyle and evolving dietary pattern acting as by-products of globalization and urbanization, will support the growth of craft beer during the forecast period 2017 to 2023.
International retailers are attracted to enter and expand in regions such as India, China, Brazil and Mexico and gain strong foothold in the market owing to major factors such as cheap labor, ease of doing business, proactive policies and regulations further trigger the sales of craft beer. However, Rising prices of Craft Beer due to Brexit and Close competition with other drinks such as hard ciders, beer, and fruity malt alcoholic beverages are the major challenges in the market.
Local flavors, innovation in product & packaging, growing number of nanobreweries, sustainable & environmental responsible production and hit on established traditional beer brands are the major trends in the market. The demand for unusual varieties of yeast strains and aromatic flavored hops is growing in parallel with the rising demand for specialty beers. Europe is recommended as the best sourcing region for yeast and with the abolition of the EU’s sugar production quota, the supplies of both sugar and its by-product molasses are expected to be high leading to decreased cost of production of yeast. Having wine business could result in significant bargaining edge to any large brewery as against its yeast suppliers.
Latest Industry Updates
Craft beer hold phenomenal growth potential given the fact that the beer industry leader, Anheuser-Busch InBev had spent an estimated USD 162 million to buy three craft breweries in 2015. Also, May 2017, the company vowed to spend USD 2 billion over the next four years to boost American brewing capabilities. Following the drift, in May 2015, world’s second largest brewer, SAB Miller bought UK-based craft brewery, “Meantime” to enter Europe’s booming craft beer movement. In September 2016, Anheuser-Busch InBev and SAB Miller merged to become the world’s largest brewery.
February 2017: Duvel Moortgat Inc. launched new limited-edition dark ale, brewed with figs and raisins under the brand name of Ommegang which will strengthen its market share.
Global Craft Beer Market - Competitive Analysis
With the entry of industry players in the Craft Beer segment, a trend of solid, volume-driven growth has been observed in the market with the development of different product varieties with better formulation. Industrial players are extensively investing on marketing activities in order to make strong brand image of their products and also to create an awareness along with keeping strong focus on product packaging creating brand value. Anheuser-Busch InBev, Boston Beer, D.G. Yuengling & Sons, Sierra Nevada, and New Belgium Brewing are the prominent market players.
With manufacturers aiming to capture a considerable share of the market segment as early as possible, they are competing and experimenting with various advantage points from both supply and demand side. The best long-term growth opportunities for this sector can be captured by ensuring ongoing process improvements and financial flexibility to invest in the optimal strategies. The key market players profiled in Craft Beer are The Boston Beer Company, Inc., D.G. Yuengling & Sons, Inc., New Belgium Craft Brewery, Deschutes Brewery, Bell's Brewery Inc., Duvel Moortgat brewery, Sweetwater Brewery and few others.
Craft Beer Market – Segments
The global Craft Beer market has been divided into raw material, type, and region.
• On The Basis Of Raw Material: Malt, Yeast, Enzymes, Hops, and Others
• On The Basis Of Type: Ale, Lager, Stouts & Porters and Others
• On The Basis Of Region: North America, Europe, Asia Pacific and ROW.
Global Craft Beer Market - Regional Analysis
The global Craft Beer market is segmented into North America, Europe, APAC, and Rest of the World (RoW). Global craft beer market is highly dominated by North America due to increasing number of breweries in that region. APAC is fastest growing region due to changing lifestyle, changing demographic trends, and improved disposable income in that region. The consumption of Craft Beer in developing counties like Mexico, India, Brazil and China is expected to grow in upcoming years.
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