According to the Straits Research, Brewery Equipment Market size is growing at a higher CAGR 6.1 %during the forecast period.
The demand for spirts has been increasing gradually, and the growth rate of alcohol consumption has, more or less, been steady over the past several years. Alcohol has held significant importance in social engagement and bonding over several eras. Beer, wine, ale, lager, and other forms of alcohol have become popular beverages served at social gatherings. An increase in the number of alcohol consumers has seen manufacturers/brewers ramp up their production to cater to the increasing demand, especially for beer and wine.
Several breweries have come up in the last decade, especially in developing economies, to serve the emerging urban middle class that has developed a lifestyle where alcoholic beverages play an integral role. The emergence of breweries has, in turn, accelerated the demand for high-quality brewing equipment at a reasonable price. The presence of a variety of beverages and beverage manufacturers makes the brewery equipment market one of the most lucrative markets to invest in.
The rising consumption of alcohol is also likely to positively affect the growth of the brewery equipment market in years to come. As per the Our World in Data, the global annual average consumption of alcohol was estimated to be 6.4 liters in 2016. The number of alcohol manufacturers, especially beer brewers, has been growing rapidly, making the brewery equipment market even more competitive.
The brewery equipment market is currently in the mature stage; however, brewery equipment manufacturers are likely to invest more in upgrading their existing models and focus a significant amount of time in manufacturing automated machines. Furthermore, companies are expected to work closely with microbreweries and brewpubs. Unlike large and regional breweries, smaller breweries, though low in market share, are growing at a considerable pace. Working closely with them will give the company access to a niche but a loyal clientele. It will also aid the company in achieving higher market penetration in the regions where these breweries are located.
The global economy, despite being in turmoil for some time, has experienced exponential growth over the last decade. This has led to the premiumization of several alcoholic beverages. Brewers are bringing in significant changes in their brewing processes and operations to either differentiate their products in terms of taste or packaging. This has kept brewery equipment manufacturers on their toes, compelling them to offer customized services to several large breweries.
Regulatory hurdles differ region to region in terms of either tariffs or alcohol consumption and may hinder market growth to a small extent. In addition to this, companies are investing a significant amount of time in product developments that offer considerable improvements in separator and heat transfer operations. However, the market is largely dominated by large-scale breweries that do not invest in new machinery that often, which is slowing down the growth rate to some extent. The advent of small breweries and the growing preference of consumers towards craft beers will likely offset this slowdown and act as tailwinds for the brewery equipment market.
Players in the brewery industry are progressing toward automating their production processes to achieve precise levels of graining and filtration in order to obtain that authentic taste of the beverage. For instance, producing beers containing properly milled malt at specific mash temperatures is found to be more efficient, as a lesser amount of grain is required to produce the same amount of beer.
Brewery equipment manufacturers are thus looking to integrate internet-of-things (IoT) and artificial intelligence (AI) in their products, which will enable brewers to program automatic mashing and even set up precise temperatures at every step during the course of the entire brewery operation. There are even machines that enable remote operators to set up the specific degree to which they want their grain to be mashed. Technological applications such as these reduce the tediousness involved in brewing without replacing the art of brewery altogether. Thus, they are expected to provide a fillip to the growth of the brewery equipment market in years to come.
| Study Period | 2020-2032 | CAGR | 6.1% |
| Historical Period | 2020-2022 | Forecast Period | 2024-2032 |
| Base Year | 2023 | Base Year Market Size | USD XX Billion |
| Forecast Year | 2032 | Forecast Year Market Size | USD XX Billion |
| Largest Market | Europe | Fastest Growing Market | North America |
Europe accounts for the largest value share in the global brewery equipment market. The presence of premier large-scale manufacturing companies such as Heineken N.V. (the Netherlands), SABMiller (Belgium), Anheuser-Busch InBev (Belgium), and Carlsberg A/S (Denmark) among others, drives the market growth in the region. Germany, Russia, and the U.K. were among the foremost consumers of beer in 2017, with a consumption of around 8,218, 8,008, and 4,405 thousand kilo-liters, respectively.
Several economies in Asia-Pacific have a relatively lenient stance on regulations pertaining to alcoholic beverages. Economies such as India, which are majorly viewed as conservative, are likely to drive the brewery equipment market during the forecast period. These developments are expected to fetch more investments from key brewers in these economies, which will drive the demand for brewery equipment in the near future.
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The brewery equipment market has been segmented into automatic, semi-automatic, and manual on the basis of operation mode. The automatic segment is expected to register the highest CAGR during the forecast period, complemented by the expansion strategies adopted by breweries to increase their production.
On the basis of equipment, the brewery equipment market has been segmented into control and monitoring, dispensing and packaging, filtration, cooling, malting, and others. The fermentation segment is expected to dominate the market due to the widespread adoption of fermentation equipment by large breweries. The fermentation process involves keeping the wort in the tanks for a certain week. The acid released as a by-product considerably increases the chances of tank deterioration. Large breweries and regional breweries that have high production output face a higher deterioration rate, which further propels the demand for fermentation equipment.
On the basis of equipment, the brewery equipment market has been segmented into a microbrewery, large brewery, brewpub, and regional brewery. Large-scale breweries and regional breweries are anticipated to hold the highest market shares due to the sheer volume of the beverages they produce, which ranks them as the largest buyers in the brewery equipment market. However, microbreweries and brewpubs are likely to have significantly higher growth rates compared to the other segments.
Millennials are inclined toward craft beers and small and local brands owing to the quality of beer they get. Furthermore, competitive pricing, attractive seating inside the brewery, and targeted marketing through influencers are some of the key driving factors behind the success of microbreweries.
Unlike all other industries that had adverse effects of the Covid-19 pandemic, the IR camera market has seen significant growth in the said period. The growth was due to the increased use of thermal imaging devices to scan for elevated body temperatures of people during the Covid times.
In mid-2020, Infrared cameras Inc. (ICI) announced that the thermal imaging system that utilizes IR cameras is the best and safer way to get highly accurate data regarding surveillance and the temperature checks of a person for elevated body temperature. This is the only market segment that has been on the positive quadrant of the graph, even in the toughest time for the entire world. The major use of these IR cameras was made in the medical and healthcare industry during the Covid times, which contributed to a significant revenue generation.
The expanding millennial population is driving considerable growth in the demand for beer, wine, whiskey, and other alcoholic beverages. To further fuel consumption and capture larger shares of the pie, alcoholic beverage manufacturers are bringing considerable changes to packaging, providing attractive labeling and re-branding their products. For instance, to cater to the changing consumer dynamics of being eco-friendly and woo consumers who prefer drinking better, but less, wine producers have started packaging their wine in cans. This has managed to bring in new consumers of wine.
These developments highlight that such marketing gimmicks have worked positively, attracting new users, which is compelling beverage producers to invest generously in expanding their existing production capacities, which includes, among other things, investments in procuring machinery. Ireland, Russia, and the U.S. hold significant value shares in terms of alcohol consumption.
Prominent players in the brewery business are expanding their facilities, and investors of large breweries are pushing towards portfolio expansion, which has led to the installation of new brewery plants in an effort by companies to scale-up their operations.
