The global craft beer market size is projected to reach USD 210.78 billion by 2028, exhibiting a CAGR of 10.83% during the forecast period. The evolving consumer lifestyle and growing consumer preferences towards CBD are likely to fuel market progress. Fortune Business Insights™ mentions this information in its report titled "Craft Beer Market, 2021-2028." The market size stood at USD 95.23 billion in 2020 and is expected to reach USD 102.59 billion in 2021.
Craft beer's demand is expected to rise rapidly because of the rising demand for the product from several consumers. The rising popularity of the product is expected to bolster market progress. Evolving lifestyles and rising socializing trends have led to the adoption of craft beer. It is a pleasing and relaxing drink that is consumed in pubs and houses. The incorporation of several flavors and improvement in taste is expected to lead the market progress during the upcoming years. Further, the incorporation of a cannabis plant variant named CBD is expected to boost industry progress. The incorporation of CBD reduces the bitter taste and attracts consumers. These factors are likely to fuel industry progress.
Information Source: https://www.fortunebusinessinsights.com/industry-reports/craft-beer-market-100736
COVID-19 Impact
Sudden Decline in Sales to Negatively Affect Market Growth
This market is expected to be negatively affected by the market growth because of the halt on production activities and lack of resources required for the production of craft beer. The rising COVID-19 patients have led to the imposition of stringent lockdown regulations, which, in turn, may negatively affect the product's sales. As per the study published by the Brewers Association, U.S. brewery sales slumped to 30.5% in May in comparison with the previous year. However, post lockdown relaxations lead to the adoption of reduced capacities and technologically advanced production techniques. This factor is likely to fuel market growth.
Segments
By type, the market is segmented into pilsner, lager, ale, and others. By distributional channel, it is classified into off-trade and on-trade. Geographically, it is clubbed into North America, Europe, Asia-Pacific, South America, and the Middle East & Africa.
Highlights of the Report
The report provides a detailed analysis of the top segments and the latest trends in the market. It comprehensively discusses the driving and restraining factors and the impact of COVID-19 on the market. Additionally, it examines the regional developments and the strategies undertaken by the market's key players.
Drivers and Restraints
Emergence of Strong Beers and Incorporation of Flavors to Facilitate Market Progress
Rising popularity regarding strong beers and the adoption of flavors is expected to boost the drink's adoption. Manufacturers focus on incorporating several flavors such as malty & sweet, tart & funky, sour, fruit & spice, and others are expected to attract consumer demand. The rising socialization among the population is expected to boost the product's demand. Further, the emergence of several breweries is expected to boost the production of beers and enhance sales. Breweries focus on boosting their production to solve supply chain problems and cater to consumer's needs. As per the Brewers Association, independent and small brewers in the U.S. produced approximately 26.3 million barrels of beer in 2019. These factors are likely to drive the craft beer market growth.
However, the availability of alternative drinks such as whiskey, rum, wine, and gin is expected to hinder market progress.
Regional Insights
Rapid Urbanization and Increasing Disposable Incomes to Boost Market Growth in Asia Pacific
Asia Pacific is projected to dominate the craft beer market share because of rapid urbanization and rising disposable income among the population. The Asia Pacific market stood at USD 39.78 Billion in 2020 and is expected to grow positively during the upcoming years. Evolving consumer lifestyles and rising per-capita income may propel market progress. These factors are likely to propel market progress.
In North America, the expansion of several breweries in the U.S. is expected to boost craft beer's adoption. Further, increasing socialization trends and the rising popularity of beers are expected to boost industry progress.
In Europe, a sudden spike in craft ale's consumption and strong demand for premium beers are likely to boost craft ale's demand. These factors are likely to fuel industry progress.
Competitive Landscape
Prominent Companies operating in the Market Announce Novel Products to Boost Brand Image
The prominent companies operating in the market launch novel products to satisfy consumer demand and boost their brand image. For example, B9 Beverages Pvt. Ltd. launched their limited edition craft beers under their Bira91 brand in April 2021 to satisfy consumer's demand for exquisite and bold flavors. This strategy may enable companies to boost their brand image. Further, the adoption of technologically advanced production technologies may enable companies to reduce labor costs, boost productivity, enhance operational efficiency and satisfy organizational goals.
Industry Development
- February 2020: B9 Beverages Pvt. Ltd. launched 3 beers under its brand Bira91 in the U.K. The company aims to augment its market reach with this launch.
Key Players Profiled in the Craft Beer Market Report:
- G. Yuengling& Son, Inc. (Pennsylvania, U.S.)
- Heineken N.V.(Amsterdam, Netherlands)
- The Boston Beer Company, Inc. (Massachusetts, U.S.)
- Constellation Brands, Inc. (New York, U.S.)
- Anheuser-Busch InBev (Leuven, Belgium)
- New Belgium Brewing Co. (Colorado, U.S.)
- Sierra Nevada Brewing Co. (California, U.S.)
- DuvelMoortgat NV (Puurs, Belgium)
- Bell's Brewery, Inc. (Michigan, U.S.)
- Dogfish Head Craft Brewery Inc. (Delaware, U.S.)
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