The craft beer industry is currently experiencing a significant surge across the globe as an increasing number of beer drinkers are shifting their preferences from mass produced beer brands towards craft beer for its unique taste. Unlike the big beer brands with mass production lines, craft beer is normally brewed using traditional, non-mechanized methods in small breweries, allowing the outcome to have experimental or distinct taste for each brewery. This increasing consumer preference for exotic beer flavours will act as a primary driver for the global craft beer market over the next five years.
Global Craft Beer Market Size
According to the latest market research from Technavio, the global craft beer market size is projected to grow more than USD 35.8 billion from 2018 to 2022, registering an impressive CAGR of nearly 12% during the forecast period. This growth in market size will be attributed to consumers in the beer market becoming increasingly experimental in their consumption habits, looking for new experiences and new beer styles. Meanwhile, the rising population of millennials, who are the major consumer group for craft beers, is also resulting in an increased demand for craft beer. These factors will act as the primary growth drivers expected to increase the global craft beer market size in the coming years.
In terms of regional market share, the US is currently the largest craft beer consuming country. The growth of the craft beer market in the US has also increased the number of craft brewers across various states in the US. The rapid expansion of craft beer breweries in the US has contributed to an increase in the availability of craft beers in the market across the region. Most of the breweries have introduced their own and unique craft beers. This has given customers increased opportunity to try new beer flavors, therefore, driving the growth of the craft beer market in the US.
Europe is another top regional market for craft beers, after the US. The rising number of microbreweries and craft breweries in Europe is one of the critical reasons that will propel the craft beer market in Europe over the next five years. High consumer’s interest facilitated by labelling and packaging innovations will drive the craft beer market in Europe to grow at a CAGR of nearly 13% during the forecast period.
However, the Asia Pacific is expected to witness the highest growth rate in the craft beer market over the next five years, owing to the rising purchasing power and changing consumer lifestyles. A considerable rise in the consumption of craft beer by young generations has been observed in China and India in recent years. The growing demand for craft beers in countries like China and India is the main reason fuelling this regional market.
Future Trends for the Craft Beer Industry
The introduction of new craft beer flavors is one of the key emerging trends within the global craft beer industry. Flavors set a beer apart from one another and act as a point of differentiation for the consumers. The millennials are a main targeted consumer group of breweries in regions like the US, Europe and Asia Pacific. The preference of millennials towards flavored beers has seen breweries adopting and incorporating newer flavors in their beer offerings.
Along with the introduction of new beer flavors, another major factor boosting the demand for craft beer is multicultural millennials. These millennials are open to experimenting with new beer products and flavors. This trend has also seen more craft beer companies across the globe launch different beer styles and flavors, specifically for millennials in recent years.
Check Technavio’s Global Craft Beer Market Report 2018-2022
Check Technavio’s Global Craft Beer Market Report 2018-2022 for more craft beer insights. This market research report provides the latest market size and market development for major market segments in terms of product types and regional market landscape. The report contains detailed market trends, market drivers, market challenges and key opportunities. In-depth market analysis such as Porter’s five force model, and comprehensive competitive landscape including detailed profiles of top companies are also included in the report.