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16
Jul-2019
Future Perspective of Craft Beer Market
In the Craft Beer Market, Germany and the United Kingdom account for 25% of the revenues generated.
Craft beer Introduction:
Craft beer is also known as Draft beer or Draught beer, which is served from cask or keg in place of a container, i.e. can or bottle. Craft beers are independently brewing, and as it is all about the independence of Thoughts and Action as its process is versatile, it allows us to do the experiment with different styles and to make improvements and changes for the new ideas and flavors of the brewery. It is an individual brewed batch of beer which is processed with the finest of ingredients, Skill, Knowledge, and Care. Generally, they are made in small batches and have bolder, hoppier flavors which are led by their hop character and emphasis on flavor and quality. It has many differences, but there are 3 Keys - Flavor, Creativity, and Ownership. It has a huge technology and range to suit any taste, i.e., 'NOTES.'
Recent Trends to Keep Your Eye On:
Increasing Consumption of Low-Alcohol by Volume:
Nowadays, consumers are health-conscious, due to which there is a rise in the sales of no-alcohol and low-alcohol beers, and also it provides consumers a more extensive choice of new ranges with improved taste. Due to the trend of low-alcohol beer and ciders, there is more awareness of alcohol unit consumption in the customers, which is creating more interest in the consumers to try new beverages. Cost reduction is the driving factor of craft beer as low-alcohol beers are cheaper than the high alcoholic equivalents, for those of 2.8% ABV and less.
Ales Remains the Fastest-Growing Segment:
Over the decade, Ales style craft beer is mostly preferred by the customers. World widely there is a major increase in the opening of craft beer breweries and microbreweries as they have their range of craft-style beers which involves natural ingredients in the production process such as water, barley, yeast, and hops, since its outset. In the market, consumers are ready to drink less-but-better' beer with a higher barley and malt content.
Use of tin Cans than/instead glass bottles:
There is an enormous growth of beer in cans. As it is not going to be out of fashion at any time. As they are easily portable and to store and keeps the beer fresh. Therefore, Cans are in trend and is going to maintain its position in the market the same way it is now.
Future Perspective of Craft Beer Market:
In the first quarter of 2015, the growth of craft beer was bright, i.e., 17.1% by its volume. There are many industries that are looking forward to a 20% market share by 2020, from 11% mark in 2014. India holds a sale of 26% share volume of all craft beer and 3% on other alcohol beverage sales.
By the end of the decade 6,000, craft breweries are expected. Last year, less than 50, the closing of breweries was low in percentage. In 2015, there will be 4,000 operating breweries in America. Craft breweries are opening with a rate of 1.7 per day.
Upcoming Challenges:
As there is a continuous increase in the growth of craft beer, they will be speed bumps. If there will be quality in the production of beer, then only the new craft breweries can sustain in the market. Therefore, the market includes On-Trade (offering drinks in pubs, bars, restaurants, clubs, etc.) and Off-Trade. Hence, increase the growth of pubs and bar globally, strengthen the growth of craft beer. In the 70s, the microbrewery movement has expanded the market and will continue to grow during the assessment period. Therefore, after Tea and Water, Beer is the beverage, which is the highest consumed across the world. New technologies are adopted in the brewing process, which has a highly positive impact on the global craft beer market.
Leading Region, Segmentation, and Key Players:
Craft Beer Market is estimated to be growing at a CAGR of 21.51%. In terms of value as well as volume, Europe is expected to be the largest market share. Germany and the U.K. cover 25% of the overall revenue share and are the largest consumers of this spirit. The fastest-growing region is Middle East & Africa and Central & South America. The market growth in these countries is due to a wide range of flavors. In the region, the fastest growing country with a market share in the U.S. and Mexico.
Several Key Regions:
North America, Europe, Asia Pacific, China and Japan, and more. The craft beer market has been segmented based on type (stouts & porters, ale, lager, and others), ingredients (yeast, enzymes, cereal grain, hops, and others).
Some of the Market Key Players:
D.G. Yuengling and Son, The Boston Beer Company, The Gambrinus Company, Chimay Beers and Cheeses, Stone & Wood Brewing Co., Vagabund, Lagunitas Brewing Company, and New Belgium Brewing Company and More.
Conclusion:
Nowadays, drinking craft beer is just like a ritual, apart from having a good time. But Craft beer is something which has changed the entire perception and experience of the customer, which is surprising and making the customers curious due to its new and changing taste. This is the major reason for the booming culture of the Craft beer day by day.
WRITTEN BY: Himani Kathal
Himani Kathal is a management student at RIIM Pune. She worked as a Research Associate (intern) in Market Data Forecast, one of the world’s leading research and consulting for various business domains, individuals and corporate clients
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