Craft Beer Market

Global Craft Beer Market Size (2024 to 2032)

The global craft beer market is expected to be worth USD 141.66 Billion in 2024 and grow at a CAGR of 14.0% from 2024 to 2029 to reach a value of USD 404.10 Billion by 2032.

The interest in low-alcoholic beverages has increased with the developing enthusiasm of well-being-conscious customers. Craft beer is generally favored due to its credibility, taste, and brand. As a result of the expanding interest in such brews, merchants offer exceptional assortments of lager. For example, A.B. InBev offers premium specialty brews, such as Stella Artois, Leffe, Hoegaarden, and ShockTop, a home-style specialty lager.

CURRENT SCENARIO OF THE GLOBAL CRAFT BEER MARKET

The global craft beer market has witnessed notable growth in the past few years and is anticipated to grow considerably during the forecast period. Craft beers are generally made with traditional ingredients like malted barley. Craft beer is more popular than beer as it is produced in limited quantities, and the manufacturers highly focus on the taste. Craft beer offers more health benefits than the average red wine. Craft beers contain more alcohol content compared to regular domestic beers. Craft beer comprises about 5-10 percent alcohol, whereas domestic beers have 3.5 percent ABV. The escalating demand for unique flavors and artisanal brewing processes are majorly driving the market growth of craft beer. The rising number of microbreweries worldwide will accelerate the market growth opportunities.

MARKET DRIVERS

The growing awareness among consumers regarding microbreweries and craft beer bars and the rising popularity of beer tourism propel the global craft beer market growth.

The expanded buying intensity of buyers searching for increasingly inventive items in the food and beverage industry has brought about more appeal for craft beer items. In addition, the significant increase in customer consumption in the planet's most crowded nations also impacts the worldwide craft beer market. The medical advantages of craft beer, in contrast to mass-created beer combined with extra flavors, have made craft beer famous at a young age. Besides, there is a generously high number of recent college graduates worldwide, and they need to indicate more brand reliability and readiness to try different things with new and complex flavors. The presentation of top-notch assortments of craft beer, such as IPA, pale beer, and heavy, by worldwide and local full-scale distilleries and microbreweries will drive the development of the market.

The growing number of product launches by the key market players with improved taste and low alcoholic substance in the brew for those of 2.8% ABV and less is contributing to the growth of the craft beer market. Expanding the adoption of craft beer among Asian shoppers is supposed to stimulate the worldwide market. In any case, danger from other alcoholic drinks, like wine, is one of the significant factors in the global craft beer market.

There is a developing inclination for low liquor-by-volume drinks, and the deals of no-liquor and low-liquor brews have been ascending with the developing enthusiasm from well-being cognizant buyers and a more extensive decision of new ranges with improved taste. There is a pattern toward low-liquor brews and juices, ascribed to developing attention to liquor unit utilization and the client's readiness to attempt new beverages. This move-in pattern is seen in the interest for low liquor drinks by volume in the United Kingdom, where the deals of off-licenses and general stores have risen to a record high. The low-liquor beer is presently less expensive than their high alcoholic reciprocals, for those of 2.8% ABV and les, further favoring the global market growth.

MARKET RESTRAINTS

Many craft beer players utilize the cash premise method for speaking to obligation purposes.

Under the past rules, associations were generally allowed to use this technique if their yearly gross receipts didn't outperform certain levels (mainly, a restriction of $10 million). As the quantity of craft beer developed, they were limited in using the cash premise technique for accounting as they outperformed the gross receipts test. The U.S. government is applying tops on numerous brewers for the creation and is enforcing additional obligations and charges if the number of barrels created outperformed the cutoff. There are already enough brewers in the domain, and adding another would be contrary to the zone's bit of leeway, morals, prosperity, or government assistance. Steve Hindy, the organizer of Brooklyn Brewery, expresses that some little brewers will only enter specific business sectors if the nearby wholesalers' notoriety is present. That is terrible for these organizations and the economy; however, it is incredibly awful for buyers who wanted to attempt the most recent well-known craft beer yet couldn't discover them in their state. The top measures of liquor utilization can likewise prompt diabetes. In general, numerous dangerous issues are hampering the development of the global craft beer market.

The availability of other crafted alcoholic beverages such as gin, rum, and whiskey is expected to hamper the growth of the global craft beer market. The presence of stringent regulations for the approval of alcoholic beverages and the limitations of the alcohol content in the beverages for various regions will make it challenging for manufacturers to expand their geographical reach as the regulations vary according to the regions. The rising health consciousness among people is escalating them towards non-alcoholic beverages and other soft drinks, restraining the market growth. The expensiveness in the brewing processes restricts the expansion of small-scale brewers, limiting the market growth rate.

 REPORT COVERAGE

SEGMENTAL ANALYSIS

Global Craft Beer Market Analysis By Product Type

Of these, the ale segment registered the highest share in the worldwide craft beer business. In recent years, several customers have preferred conventional beers like pale ale, porters, and stout. This has driven chiefly some of the key players in the global market to reinstate different types of traditional beers into the marketplace. Ales are known for their unique and deep flavors, aroma, and complex nature, which fuels the segment growth rate. Most consumers seek a wide range of varieties, artisanal, and distinctive beer experiences where the ales are a perfect fit. This is enhancing the demand for ales, leading to an expansion in market size.

Lagers are also popular among a wide range of customers and are expected to grow considerably during the forecast period. Due to low-temperature fermentation, lagers have a smoother and milder flavor than ales.

Global Craft Beer Market Analysis By Distribution Channel

The on-trade segment held a significant share in the craft beer market. The on-trade distribution segment often comprises bars, restaurants, coffee shops, clubs, and hotels. The distribution and sales of products in this segment differ entirely from the approach and practices in the off-trade sector. Consumers are looking for a more comfortable and stylish experience, which resulted in an increased number of brewpubs, tasting rooms, and tiki bars. This factor stimulates the rise in the pub and bar culture among millennials, which promotes the growth of the global craft beer market.

The off-trade segment, which includes supermarkets, liquor stores, and online platforms, is estimated to have a steady growth rate in the coming years. The ease of availability, rising private parties at home, and exploration of diverse brands through online platforms, which involve domestic and international brands, are primarily driving the segment's growth rate.

Global Craft Beer Market Analysis By Age Group

People aged 21–35 years, often referred to as millennials, have been detrimental to the surge of different industries based on product offerings and services. They have been the prime customers in the international marketplace. Craft beer brewers have continuously implemented new product offering strategies to meet the millennial segment's changing preferences. Thus, an upsurge in millennials is anticipated to provide lucrative global craft beer market opportunities in the forecast period.

The 40-54 years segment is estimated to have a considerable market share during the forecast period. The people of this segment highly prefer the quality and flavors of craft beers rather than quantity, and the higher disposable incomes will accelerate the segment's growth. These people are expected to seek regional breweries such as classic, authentic flavors, which enhance the manufacturer's brewing methods. The people of this age mostly appreciate the craftmanship and brewing processes, which positively impact market size expansion.

REGIONAL ANALYSIS

Europe dominated the craft beer market in 2023 and is anticipated to register promising growth during the forecast period. The growth of the European region is majorly attributed to the increased intake of different craft beers. With the augmenting demand for these beers, Europe comprises regional and international players that play a pivotal role in the growth of the global craft beer market in terms of value. European region consists of a long history of brewing and a strong beer culture, notably in countries like Germany, Belgium, and the United Kingdom, which boosts the expansion of market revenue in the region. The region offers various types of traditional ales and lagers to experimental brews, marking modern innovations with old brewing processes fueling the regional market growth. Craft beers are considered the cultural aspect escalating the local demand, contributing to the expansion of market size in the European region.  

For example, China and India, nations of the Asia-Pacific region, have seen the fastest development in the market because of their expanding interest in a more extensive, urbanized populace, an extension of crucial organizations in numerous nations, and expanding creation of bottling works across the area are augmenting the market growth. In China, a progression of studies has been directed to survey and improve the viability, adequacy, and possibility of the catalysts utilized in preparing, which results in created and defined items, hence boosting the craft beer market. The increasing number of microbreweries across the region and the growing interest in craft beer culture in various countries like China, Japan, and Australia are accelerating regional market growth.

The North American region is estimated to grow at a steady rate in the coming years due to rising demand for craft beer in the United States and Canada. The region is escalating due to its innovative brewing techniques and the availability of different types of craft beers, fueling market share growth.

The Middle East, Africa, and Latin America are projected to grow considerably during the forecast period. The major factor driving the market in these regions is the rising demand for low ABV in a wide range of flavors.

KEY PLAYERS IN THE GLOBAL CRAFT BEER MARKET

Anheuser-Busch InBev, Heineken NV, The Boston Beer Company Inc., D.G. Yuengling& Son Inc., Sam Adams, Constellation Brands, Sierra Nevada, The Gambrinus Company, Chimay Beers and Cheeses, Stone & Wood Brewing Co. and Vagabund are some of the major players in the global craft beer market. Some prominent names in the industry dominating revenues with their innovative flavors and packaging are A.B. In Bev, Heineken NV, The Boston Beer Company, Constellation Brands, Sierra Nevada, and others. In the earlier days, low-ABV beers used to be tasteless, but they are now replaced with craft beers.

RECENT HAPPENINGS IN THE MARKET

• In April 2023, Bell's Brewery Inc. announced expansion into Alaska, Idaho, Oregon, Utah, and Washington, among the other five states.
• In March 2023, New Belgium Brewing Company Inc. agreed to acquire Constellation Brands' 259,000 sq. ft—brewing plant in Daleville, Virginia.
• Sierra Nevada Brewing Co. just released its first-ever line of non-alcoholic brews in the United States in December 2023.  
• In October 2022, Budweiser Asia Pacific launched a new brewery in Putian, China, as part of Anheuser-Busch InBev's aim to quicken economic growth in China and better match customer needs. Budweiser's most prominent craft brewery in the Asia Pacific is in the Fujian province.
• In April 2022, Bell's Brewery Inc. introduced Aparkel & Smash, a Belgian Tripel brewed with a blend of single malt and hops, to honor women in the craft beer industry.
• In May 2022, Vir Das, an Indian actor, launched his own craft beer, Faaakit, which is being brewed and distributed by Great State Aleworks.
• Anheuser-Busch, a Belgium-based organization, has consented to sell their auxiliary Carlton and United Breweries to Asahi Group Holdings Ltd. The Aashi Group will help commercialize the arrangement of A.B. InBev and its related brands in Australia.

DETAILED SEGMENTATION OF THE GLOBAL CRAFT BEER MARKET INCLUDED IN THIS REPORT

This research report on the global craft beer market has been segmented and sub-segmented based on product type, distribution channel, age group, & region.

By Product Type

• Ale
• Lagers

By Distribution Channel

• On-Trade
• Off-Trade

By Age Group

• 21–35 years
• 40–54 years
• 55 years and above

By Region

• North America
• Europe
• Asia-Pacific
• South America
• Middle East & Africa