Craft Beer Market - Forecast(2024 - 2030)

Craft Beer Market Overview:

As indicated by the Brewers Association in 2018, overall sale of beer in the United States witnessed a decline by 1% as compared to 2017, whereas craft beer scored voluminous trade and an upsurge in sales by 4%. When it comes to beverages, consumers are always on a quest for variety to slake their thirst. Owing to the ‘what’s new’ trend among beverage consumers, brewers are always focused towards innovations and quality production. A craft beer brewery is a microbrewery that produces lesser quantity of beer (or sometimes root beer), characteristically much lesser than large-scale commercial breweries, and is independently owned and focused towards quality, flavor and brewing technique. Hence with the entire production focused towards quality and novelty as beverages consumers always ready to invest on quality-enhancement, global craft beer market size has gained tremendous momentum in beverages domain and is estimated to be $33.38 billion as of 2018. Supportive trends among millennial such as ‘weekend’ and ‘party-culture’ has enabled the opportunities in the market to be catapulting at a global CAGR of 15.87% during the forecast period 2019-2025.

Craft Beer Market Outlook:

Craft beer market demand is gaining impetus globally, but North America with the United Sates being the largest importer of beer ($5.14 billion, 2017 OEC) capitalizes its existing beverages consumption trend and market blueprint. This region with majority of its population falling under working class with sufficient disposable income, accounted for a hefty share of 58.40% in global craft beer market size in 2018. As per the Brewers Association, the contribution of craft brewing industry to the U.S. economy in 2017 was $76.2 billion along with more than 500,000 jobs in 2017. With a total of 7450 breweries and impactful presence in all the 50 states, craft brewers are vibrant and flourishing economic force in the United Sates. California, Pennsylvania and Texas are the leading states in craft beer output with $8.2 billion, $6.3 billion, and $5.3 billion respective values.

In terms of distribution channel, the global craft beer market is segmented into off-trade and on-trade distribution. Analyzing the revenue generated by the type of distribution, on-trade is evaluated to be the fastest growing segment, progressing with a CAGR of 13.82% going through 2025. On-trade refers to business with hotels, bars and restaurants, whereas off-trade means sales to food retailers like supermarkets. Owing to the upsurge in the number of brewpubs with on-site production and sales, on-trade distribution is gaining substantial traction. For instance, in the United Sates the number of brewpubs escalated from 1053 in 2010 to 2594 in 2018 adding on-trade opportunities in the global craft beer market.

Craft Beer Market Growth Drivers and Trends:

· Government in the countries such as New Zealand, Australia, Belgium, Mexico, China, and the UK are indorsing the production of craft beer and establishment of novel and innovative breweries. It is due to the optimistic influence of craft beer market towards economic development and occupation generation coupled with the enthusiasm of the consumer to pay extra for better tasting brews. Hence, the federal support amalgamated with enthusiastic consumers is a major diver for the expansion of craft beer market share.

· Craft beer festivals are a major trend positively influencing the opportunities in market. Such avenues accolades the key players and provides a platform for novel entrants to showcase their product, offer trial, get instant reviews and market their merchandise to live audience. Some of the upcoming craft beer festivals in 2019 are Carolina Brewfest, Maryland Craft Beer Festival, and Surf ‘n’ Suds Beer Festival Ventura.

· Craft beer market size is brewing and moving towards cementing itself as a profitable sector. Leveraging the undying demand for different flavors, Bell’s Brewery has announced its upcoming series named ‘Leaves of Grass’, inspired by Walt Whitman’s literary classic “Leaves of Grass.” Craft beer market being a budding sector, its manufacturers are unable to employ mainstream and expensive mode of advertisement such as television and print. Hence, such releases and product innovations targeting various sources from music to literature acts an imperative advertising tool.

·Nutrition and beer are highly contrasting, but increasing health awareness among consumers regarding F&B nutritional constituent had uplifted the brewers to add a nuance of nutrition in their production. As modern and label conscious consumers are more conscious now than ever regarding their intake. Many breweries have recently released low-cal options and by composition these are lower-ABV as well. The Lagunitas Brewing Company just came out with DayTime IPA, a 4%-ABV, 98-calorie beer.

Craft Beer Market Challenges:

Variety allows customers to make a choice and has a higher potential of meeting a match than a solitary product, leveraging this trend craft beer market is gaining traction, and unfortunately this a major factor causing failure for brand establishments in the craft beer market. Loaded with innovations and frequent launches, the market is under unprecedented turbulence of novel entrants disturbing the establishment of any particular brand. However, the entire setting can be capitalized as an opportunity for fresh entities to try a venture.

Craft Beer Market Players Perspective:

Some of the key players holding substantial grounds in the global craft beer market are Bell's Brewery, Inc., Deschutes Brewery, D. G. Yuengling & Son, Boston Beer Co., New Belgium Craft Brewery, The Gambrinus Company, Sierra Nevada Brewing Co., Stone & Wood Brewing Co., The Lagunitas Brewing Company and Feral Brewing Co.

Craft Beer Market Research Scope:

The base year of the study is 2018, with forecast done up to 2025. The study presents a thorough analysis of the competitive landscape, taking into account the market shares of the leading companies. It also provides information on unit shipments. These provide the key market participants with the necessary business intelligence and help them understand the future of the craft beer market. The assessment includes the forecast, an overview of the competitive structure, the market shares of the competitors, as well as the market trends, market demands, market drivers, market challenges, and product analysis. The market drivers and restraints have been assessed to fathom their impact over the forecast period. This report further identifies the key opportunities for growth while also detailing the key challenges and possible threats. The key areas of focus include the various types of innovations in craft beer market, and their specific advantages to the market.

The Craft Beer Market report also analyzes the major geographic regions for the market as well as the major countries for the market in these regions. The regions and countries covered in the study include:

•           North America: The U.S., Canada, Mexico

•           South America: Brazil, Venezuela, Argentina, Ecuador, Peru, Colombia, Costa Rica

•           Europe: The U.K., Germany, Italy, France, the Netherlands, Belgium, Spain, Denmark

•           APAC: China, Japan, Australia, South Korea, India, Taiwan, Malaysia, Hong Kong

•           Middle East and Africa: Israel, South Africa, Saudi Arabia