The Growth of the Craft Beer Market
The market for craft beers is growing in popularity because of the increased consumer interest in quality beers. This category of beverages offers a wide range of flavors. Incorporating floral flavors into craft beers offers a subtle and smooth taste. Market growth is expected be further fueled by innovative flavors that appeal to people from all over the world. Read on to learn more about the growth potential of this market. Here are the main factors that are driving the market. Here are some important factors that will help you determine whether this is the right category for you.
Market growth for craft beers
The increasing popularity of non-alcoholic or mildly alcohol-free versions is driving the growth of craft beer. A growing number of customers especially those of a younger age are opting for craft beer in preference to mass-produced beers. Craft beer sales have grown due to increasing awareness about the health benefits. E-commerce platforms have helped the market for craft beers to expand by mixing traditional distribution with online sales. This trend is expected to last for the next several years.
Millennials are the main driver of craft beer's growth. This generation is the main reason for the growth in the bar and pub culture in America. Young people are exploring different flavors and experimenting with new beverages, which is encouraging the craft beer industry to expand. Craft beer is not just delicious, it's healthy for you as well. Craft beer is not just better tasting than its mass-produced counterparts however, it also offers positive health benefits.
Multinational companies dominate the craft beer market in the world. Anheuser-Busch InBev SA/NV and Asahi Group Holdings Ltd. are the main players. A majority of the market is controlled by independent and small brewery. They are focused on incorporating flavors and other ingredients to boost their sales.
The market for craft beer in the world is segmented according to product type and distribution channel, region, age, and region. This report analyzes the market for craft beer in North America, Europe, Asia-Pacific, and LAMEA. The North American region is the market top craft beer producer however the European region is expected to be to the European region. This is due to the presence of numerous major craft beer producers. The region's rising disposable income is another factor that has contributed to the rise of the craft beer industry.
Microbreweries are expected to drive the European craft beer market to its highest growth rate. There are more than seven thousand microbreweries in operation across the continent, providing both traditional and innovative craft beers. The value chain is also included in the report which provides a competitive advantage to both new and established craft beer producers. industry. It also includes profiles of key players in the craft beer market and an analysis of the competitive landscape.
People are increasingly opting for drinks with low alcohol content to quench their thirst. Craft beers have expanded to include many flavors including floral ones that balance the taste and give them a smooth texture. Consumers are more open to exploring new flavors, and a trend towards innovation will help to boost market growth. CANarchy is a brand owned by Anheuser-Busch has recently launched Liberte, a beer that isn't alcoholic. It will be available across the country in 2021.
The trend towards better-quality craft beers is evident in the Asia-Pacific region. Generation Y, for instance, are increasingly stopping by pubs and taprooms to meet and increase the demand for craft beer in this region. The breweries in Europe that are small and independent produced more than 26.3 million barrels of beer in the year 2019 which translated to a market size that was greater than 3.4 billion liters. These figures suggest that the demand for craft beers is increasing across the region and is aided by the growth of urban centers.
Sours are popular in the United States, attracting a large number of drinkers. In 2021 the number of people who want sweet and sour tastes will rise. While the quality of European-style beer has improved and the newer craft drinkers are moving away from the easy-to-drink obscure styles and toward more sophisticated, complex flavors. The old-school crowd still enjoys lagers, which will continue to gain popularity in the U.S.
Trends in the craft beers market report analyzes national and regional market conditions. The report examines emerging trends and the competitive trends. It also provides information on product launches and regulatory changes. It also analyzes the impact of local market players trade routes, product approvals. The report offers qualitative insights into the potential regions and segments. The report outlines opportunities and challenges for brewers.
Low-ABV beers are another trend to be on the lookout for. These beverages have long been in the spotlight but have recently improved in terms of quality. While they are lower in alcohol content than their high-ABV counterparts, they lack the full flavor of beer. The trend towards lower-ABV beverages is expected to continue until 2021. Craft beer producers will have to adjust to these new trends.
Major players on the market
The global market for craft beers is segmented into various segments, including Food Service, Bar, and Personal Buyer. This report examines the current and future market trends and provides detailed information on the key factors that affect the market. This report offers a comprehensive analysis of market's top players and a forecast for the region. The report also provides detailed information about recent developments, like new product approvals, as well as geographic expansions.
Gen-Xers and Boomers who make up the majority of the craft beer market tend to prefer higher-priced brands. They are also more likely to take home their purchase , rather than drinking it immediately. They also are more loyal to brands than millennials, who are less likely to try new beers. 75% of the younger generation admitted that they had purchased beers they'd never had before. They also tend to purchase craft beer at brewpubs.
Other notable players in craft beer industry include Anheuser-Busch InBev SA/NV Constellation Brands Inc., D.G. Yuengling & Son Inc. and Molson Coors Beverage Company are also prominent players in the craft beer market. While some regional breweries represent a significant portion of the market, the larger players are also trying to up their game. They can compete with established brands by expanding their global reach.
In addition to Australia, Belgium, Germany as well as the U.S. are the largest craft beer-producing countries. In these countries, Belgian beer is the most sought-after type of craft beer, and consumers are looking for rich flavor, top quality, and a refreshing taste. The number of craft beer brewers is rising as well as the demand. However, rising demand is lowering bargaining power for brewers, as the number of brewers grows.
The craft beer market in the world will be worth USD 502.9 billion by 2025. It is predicted that it will grow at a rate of around 8.0 percent annually. Many small breweries have sprung up because of the increasing popularity of socializing. Many breweries are enhancing their craft brewing methods in order to meet the demands of their customers. In the year 2019, U.S.-based independent breweries produced 26.3 million barrels of beer. Craft beer was responsible for 25.2 percent of the volume.
Market Impact of COVID-19 pandemic
The COVID-19 virus has had a significant impact on the craft beer market. The disease has not affected the production or consumption of major beer companies like Anheuser-Busch InBev or Molson Coors but it has caused significant damage to the craft-brewing industry. Many breweries, particularly small ones, have shut down and many have converted to carryout or delivery operations. These initiatives have helped a few brewery owners, but they aren't going to make up for lost sales.
The craft beer market is projected to grow at a 14.1 percent CAGR between 2022 and 2027. The pandemic affected on-premise brewing, as it limited the functions of pubs and cafes. These restrictions were removed by the end of 2020 and these channels were opened to the general public. In addition the off-trade distribution segment experienced a significant increase during the COVID-19 outbreak, with sales of alcohol at the store soaring in many countries.
Retail sales are also affected by the COVID-19 pandemic. People are more inclined to buy national brands and famous brands than independent, craft-brewed brands. National breweries have a strong brand name and distribution channels, and could be the leading market player in craft-brewing. A few smaller breweries have started to investigate home delivery options. This lets consumers taste new brews in their homes.
A COVID-19 pandemic may result in a dramatic decline in sales of craft beer. As a result, disruptions to the economy and lockdowns could stall the growth of the craft beer industry. In the meantime, the craft beer industry is already suffering from the shifting consumer preferences of consumers and is at an "make-or-break" point. The virus could force states to enforce lockdowns on brewery owners.