Beer kegs Market

 Global Beer kegs Market Size (2024 to 2029)

The global beer kegs market size is expected to be worth USD 2,672.70 Million in 2024. It is expected to grow at a CAGR of 13.8% during the forecast period and reach a value of USD 5,101.07 Million by 2029.

The kegs are large utensils like barrels designed to store liquids in the beverage industry. The beer kegs are made to store and dispense beer. These beer kegs are mostly made of stainless steel, plastic, and aluminum. A keg has a single opening, a bung, on one end. From the aperture to the opposite end, a spear-shaped tube is present. When the keg is tapped, a connected self-closing valve is opened by the coupling fitting. There is a gas-allowing opening at the tip of the spear, too. The connection fitting contains one or two valves that regulate the gas flow into the keg and beer out of it. The keg must be upright with the opening on top for the beer to be poured. These containers allow and maintain the good quality of beer. These kegs help maintain the same beer flavor for a long period. In kegs, beer is thoroughly conditioned before sale. Beer meant for local consumption can be kegged without sterilization as long as it stays chilled.

The cost efficiency of beer kegs is creating opportunities in the beer keg market growth over the forecasting period. The beer keg provides cost advantages for breweries and also to the customers buying beer in huge amounts. The beer kegs are less expensive when compared to single-use bottles or cans. These kegs are especially used for larger production volumes of beer. Also, it is possible to reuse these kegs, while the bottles and cans can not be reused. Hence, these are the factors that are advantageous when kegs are used instead of bottles and cans. Additionally, the kegs are air-tight containers, hence helping to store the beer easily and also helping to maintain the flavor of the beer throughout storage. As these containers are reusable and environmentally friendly, they are preferred by the consumers and the breweries. This helps the companies to participate in recycling programs to keep up with the changing policies to maintain the environment. For instance, to create one-way PET beer kegs for the Japanese market, Mitsubishi Chemical Corporation, KHS GmbH, and Petainer partnered together in January 2018. Similar to this, in December 2018, Firstmile.com collaborated with One Circle, BV, and KeyKeg to develop a circular program for recycling plastic kegs. These are the factors that are creating opportunities in the beer keg market growth over the forecasting period.

Global Beer kegs Market Drivers:

 The increase in beer consumption across the globe is one of the major driving factors in the beer keg market growth. This is due to the increase in consumer preference towards the consumption of various types of beverages, including beer. For instance, according to the study, global beer consumption stood at approximately 185.60 million kiloliters in 2021. In addition to this, the increase in consumption of beer in developed and developing countries drives the beer keg market growth. This is due to the increase in consumption of beer by the millennial generation. For instance, Overall U.S. beer consumption per adult aged 21 and over is around 28.2 gallons per person per year. Also, a study of Americans' drinking patterns by Gallup, Inc., previously known as the American Institute of Public Opinion, revealed that about 70.0% of men between the ages of 18 and 29 chose beer over other alcoholic beverages.

 The increase in consumer preference towards flavored beverages is prompting the growth of the beer keg market. This is due to the kegs helping to maintain the flavor of beer while it is being stored. Additionally, the increase in demand for craft and draught varieties of beer is fueling the growth of the beer keg market. Furthermore, the increase in the adoption of sedentary lifestyles and busy schedules is leading to an increase in demand for beer kegs across the globe. The increase in per capita income also helps to boost the market growth for beer kegs. Additionally, these kegs help in preserving the true flavor and quality of alcoholic beverages for extended periods. Since kegs are typically used to serve draught beer to maintain pressure, on-trade sales make up a bigger portion of the product's demand. These are the factors that are helping to boost the beer keg market growth.

Global Beer kegs Market Restraints:

 The increase in uncertainties about the price of beer kegs is one of the major factors restraining the beer kegs market growth. This is due to the variations in the cost of raw materials used in manufacturing, resulting in increasing the price of the beer kegs. It is anticipated that global economic downturns and inflation will restrict the expansion of the beer keg market. Additionally, the increase in the prevalence of diseases such as liver cirrhosis, alcoholic hepatitis, etc., caused by the consumption of alcoholic beverages, including beer, is hindering the beer kegs market growth. The increase in awareness among the population regarding the hazardous health effects of the consumption of beer is decreasing the demand for beer. This, in turn, results in a decrease in demand for beer kegs across the globe. These are the factors that are restraining the growth of the beer keg market.

Impact of COVID-19 on the Beer kegs Market:

The pandemic adversely impacted the Beer kegs market. This is due to the lockdown imposed by the government to avoid the spread of the pandemic. This resulted in a decrease in sales of beer kegs. Additionally, during the pandemic, the majority of consumers were focusing on boosting their immunity and hence avoided the consumption of beer. Because of the lockdown, all the manufacturing industries were closed as there was a lack of workers and less economic balance. In addition, people were only buying essential items during the pandemic as they avoided the chances of getting infected by the virus. This resulted in a fast reduction in demand and supply of beer kegs. The restriction while traveling resulted in a lack of supply of raw materials during the pandemic. However, after the initial phase of the pandemic, the increase in vaccination drives helped to lift the lockdown, which led to a slight increase in the growth of the beer keg market.

REPORT COVERAGE:

This research report on the global beer kegs market has been segmented and sub-segmented based on material, & region.

Global Beer Kegs Market - By Material

• Stainless Steel
• Plastic
• Tin

Among these, the Stainless-steel segment dominates the market. The Stainless-steel segment is expected to show its dominance in the beer keg market over the forecasting period. Mainly, this is due to many manufacturers emphasizing environmentally friendly methodologies. Stainless steel requires less amount of energy. The high durability and recyclability of steel increase the production in the company. These stainless steels are used for transportation as they are easy to transport in kegs. The stainless-steel kegs help block gases and keep UV rays away, hence helping to maintain the flavor and aroma of the beer. These kegs are available from 2 liters to 5 liters. They come in a variety of tapping kits, such as the Nitro tapping kit, Party tapping kit, Amateur tapping kit, and Pro tapping kit. The Steel Keg Association, a marketing-focused non-profit to expand the number of beer and other beverages sold in stainless steel kegs, was established in April 2022 by a group of six international keg supply chain firms. The plastic segment is expected to show the fastest CAGR growth in the beer kegs market growth over the forecasting period. 

Global Beer kegs Market – By Region:

• North America
• Europe
• Asia-pacific
• Middle East and Africa
• Latin America

Regionally, the European region dominates the Beer kegs Market. The European region is expected to show dominance in the Beer kegs market over the forecasting period. This is due to an increase in the consumption of beer in the European region. The increase in the use of steel kegs for secondary cask fermentation increases the demand for beer kegs. Additionally, there is an increase in the number of craft breweries in the European region. For instance, according to a study from the Brewers of Europe Report 2020, there were only 1,992 microbreweries in 2008; by 2020, there were more than 9,500, and the number is still increasing. These breweries are using kegs while distributing across the region. This increased demand for beer kegs across the region. These kegs are used to maintain the aroma and flavor of craft beers and also to maintain any type of contamination.

The Asia Pacific region is expected to show the fastest CAGR growth in the beer keg market over the forecasting period. This is due to an increase in the consumption of beer across the Asia Pacific region. For instance, approximately 35.6 billion liters of beer were produced in China in 2021, up from approximately 34.11 billion liters in 2020, according to the National Bureau of Statistics of China. This increased the demand for beer kegs across the region. Additionally, the increase in the number of bars, pubs, etc., increased the demand for beer kegs across the region. In addition, various companies are focusing on the proper storage of alcohol to maintain the flavor and to avoid contamination by external factors. Beer kegs maintain the flavor and also protect from contamination. Also, these beer kegs are environmentally friendly; hence, companies are demanding kegs to store the beer.

Hence, there is an increase in demand for beer kegs across the region.

KEY MARKET PLAYERS:

Major Players in the Beers Kegs Market are American Keg Company, LLC.,, NDL Keg Inc., Shinhan Industrial Co., Ltd., Ningbo BestFriends Beverage Containers Co. Ltd., Blefa GmbH, Schaefer Container Systems, Petainer UK Holdings Ltd, Ardagh Group S.A., Julius Kleemann GmbH & Co KG, The Metal Drum Company Ltd.

RECENT HAPPENINGS IN THE MARKET:

In May 2023, Australian IoT innovator Binary Beer launched its latest generation KegLink sensor – the 5G Smart Keg – tailored for the US market in partnership with Kegshoe, and which aims to streamline the sales, quality, and supply chain of draught beer.