Craft Beer Market

Craft Beer Market Size

The global craft beer market size was valued at USD 107.28 billion in 2024 and is projected to grow from USD 117.47 billion in 2025 to reach USD 242.79 billion by 2033, exhibiting a CAGR of 9.5% during the forecast period (2025-2033).

The global market is experiencing significant growth, driven by the increasing youth population and their strong inclination towards party culture. Young consumers are also showing a growing preference for unique and innovative flavors in their beverages, and concerns over high alcohol content in traditional liquor are encouraging them to explore craft beer options. This shift in consumer preferences is expected to continue fueling the demand for craft beer in the coming years.

In the U.S., the craft beer market reached USD 28.9 billion in 2023, with the number of craft breweries growing steadily. The Brewers Association reported an increase in the number of breweries from 178 in 2015 to 261 in 2022, reflecting the rising popularity and demand for craft beer. These breweries are known for their creativity, using traditional ingredients like malted barley while also experimenting with non-traditional ingredients to produce distinctive and innovative brews.

This trend of innovation, coupled with the growing regional craft brewery movement, positions the U.S. as a key market in the industry.

Fig: U.S. Brewery Count, 2015-2023

Source: Brewers Association

Craft Beer Market Trends

Increasing number of microbreweries

The global craft beer market is witnessing a significant surge in the number of microbreweries, driven by growing consumer preferences for local and unique products. For example, in North America, the Breweries Association reported an increase in microbreweries from 1,500 in 2000 to over 8,000 by 2023. This growth reflects a rising demand for authentic and distinctive flavors that only small-scale operations can provide.

Microbreweries are not just diversifying offerings but also strengthening community ties through local events and collaborations. This trend is particularly fueled by younger consumers who prioritize unique experiences over mass-produced alternatives. Their preference for quality, creativity, and personalized connections is shaping the global market, making microbreweries a key driver of industry growth.

Craft Beer Market Growth Factors

Rapidly health-conscious consumer behavior

The global market is experiencing a notable shift towards low-alcohol and non-alcoholic options, driven by the rising health consciousness among consumers. This trend is particularly evident in Europe, where breweries are innovating to improve the flavors of low-alcohol beers, which are traditionally perceived as bland.

• For instance, the demand for beers with an alcohol by volume (ABV) of 2.8% or less has grown significantly, enabling consumers to enjoy craft beer without the drawbacks of high alcohol content.

This has spurred an increase in sales of low-alcohol craft beers, supported largely by Millennials and Gen Z. These younger demographics prioritize health while showing a strong inclination to explore unique and diverse flavors, further propelling the market’s growth.

Craft Beer Market Restraining Factors

Increasing threat of substitution

The global market is facing intensifying competition from other craft beverages such as whiskey, gin, rum, and wine, which are increasingly becoming popular substitutes. This growing trend is limiting the growth potential of craft beer as consumers explore a wider variety of artisanal alcohol options.

• For example, craft distilleries are leveraging advanced distillation techniques to create high-quality spirits that appeal to consumers who value craftsmanship, similar to the appeal of craft beer.

Moreover, the rise of innovative flavors in craft spirits and wines—such as plum-infused whiskey, lemon gin, raspberry rum, and grapefruit wine—has further attracted consumers who seek unique and bold taste experiences. These flavor advancements are diverting attention from craft beer, increasing the competitive pressures on the market, and challenging its growth.

Craft Beer Market Opportunities

Innovative offerings by the breweries

The shift in consumer preferences toward low-alcohol and non-alcoholic craft beers presents a significant growth opportunity for breweries worldwide. By catering to health-conscious and diverse audiences, breweries can expand their market reach while maintaining the craft beer essence through innovation.

• Athletic Brewing Company, a leader in the craft beer space, offers a variety of non-alcoholic options like Upside Dawn Golden Ale and Run Wild IPA, targeting traditional beer enthusiasts with rich flavors and balanced profiles.
• Established brands are also venturing into the non-alcoholic segment. For instance, Guinness 0.0 replicates the iconic stout’s deep coffee-like richness without alcohol, while Heineken 0.0 mimics the classic lager experience, making it widely popular and accessible.
• In Europe, traditional breweries like Germany’s Weihenstephaner and Clausthaler maintain a reputation for producing high-quality non-alcoholic beers, combining centuries-old brewing standards with modern consumer demands.

This emphasis on innovation enables breweries to tap into an expanding global audience, reinforcing craft beer’s reputation for quality and creativity while meeting evolving consumer preferences.

Regional Insights

Asia Pacific is a Dominant region with a 40.45% market share

The Asia-Pacific region is leading the global market, fueled by changing consumer preferences and a growing inclination towards beverages with lower alcohol content. In countries like India and China, the demand for craft beer is expected to rise further due to the expansion of the young population.

According to the World Health Organization, India, with a population of 1.43 billion people, represents a massive market opportunity for craft beer manufacturers. As younger generations in these countries increasingly seek out unique and flavorful alcoholic beverages, the market for craft beer is poised for substantial growth, driven by evolving tastes and a shift toward more artisanal and locally produced drinks.

North America has Rapid growth in the U.S & Canada

In North America, the market is experiencing rapid expansion, particularly in the United States and Canada. The U.S., as a key driver, has seen a surge in craft beer consumption, prompting both established players and new entrants to ramp up production capacity to meet growing demand. Many breweries are also innovating with unique flavors and styles to differentiate themselves in an increasingly competitive market.

As a result, the North American market continues to thrive, with craft beer becoming an integral part of the region's drinking culture. With rising consumer interest in premium, locally sourced beers, the region is expected to maintain strong growth in the coming years.

Countries Insights

• United States:The U.S. holds the largest share of the global craft beer market, thanks to the presence of both established major manufacturers and a growing number of small-scale craft breweries. For instance, the number of breweries in the U.S. has risen dramatically from 4,847 in 2015 to 9,906 in 2023, reflecting the growing consumer demand for diverse, locally-produced craft beers.
• United Kingdom:Over the past 15 years, the UK's craft beer production has seen explosive growth, with revenue increasing from almost non-existent levels to over USD 1.53 billion by 2022, according to Brewer’s Journal. A study by Brewhouse and Kitchen revealed that more than 65% of beer drinkers in the UK now prefer craft beers over mainstream options. Craft beer sales in the country have surged by 48% in the past year, outpacing other beer categories.
• Germany:Germany boasts one of the oldest and most continuous brewing traditions globally, with Munich being the epicenter of craft beer production. The country is home to approximately 1,300 breweries producing over 5,000 beer brands. Nearly half of all German breweries are concentrated in Bavaria, where seven major breweries account for producing 158 million liters of beer annually.
• India:Craft beer sales in India have skyrocketed in recent years, driven by changing consumer tastes. Indian beer drinkers are increasingly seeking fresh flavors and unique ingredients, moving away from the traditional mainstream bottled beers.

Moreover, craft beer sales are growing at an estimated annual rate of 20% to 30%. The growing influence of Western culture, particularly trends from Europe and the U.S., has played a significant role in fostering this shift in consumer preferences.

Segmentation Analysis

By Product Type

Lager Product Segment Dominated the Market with the Largest Market Revenue

In 2024, the lager segment leads the global market in terms of revenue, largely due to its crisp, refreshing taste and lower alcohol content, making it more appealing to a broad consumer base. The advanced brewing process allows lager to retain its flavor even during transportation, making it convenient for both consumers and manufacturers.

In contrast, ales, while increasingly popular in the US since the 1980s, take longer to produce and often require more specialized processes. Therefore, craft breweries are innovating within the lager segment, creating unique American-style variations using local ingredients like US malts, hops, and fruits, adding flavor complexity and distinctiveness.

By Distribution

On Trade Segment Accounted for the Largest Market Revenue

The on-trade segment, comprising sales in bars, restaurants, pubs, and clubs, holds the largest market share in 2024. This channel is vital for brand building and generates higher revenue due to added service charges. Craft beer's growing popularity in social venues contributes to its dominance in the on-trade market, driven by increasing socializing trends.

However, the off-trade segment, which includes supermarkets and specialty stores, offers a wider product selection and has a more extensive reach, appealing to a broad customer base. Despite its efficiency, the off-trade channel faces competition from the high-touch, experience-driven on-trade segment.

Company Market Share

Key craft beer market players are adopting strategies like collaborations, acquisitions, and partnerships to enhance their product offerings and expand their market presence. The market remains highly fragmented, with both local and international players vying for consumer attention. To differentiate themselves, many players are experimenting with new flavors and brewing techniques, aiming to attract a wider range of consumers who seek unique and innovative beer experiences.

One notable example is D.G. Yuengling & Son, Inc., located in Pottsville, Pennsylvania. As the oldest brewery in America, Yuengling has a strong foothold in the market, offering a wide range of craft beer options, including light and premium beers, lagers, light lagers, porters, and seasonal offerings like bock. The company continues to innovate by introducing new products and expanding its distribution, reinforcing its position in the competitive craft beer landscape.

Recent Developments

• August 2024 -Tilray Brands, Inc. entered into a definitive agreement to acquire four prominent craft breweries from Molson Coors Beverage Company. This acquisition includes Hop Valley Brewing Company, Terrapin Beer Co., Revolver Brewing, and Atwater Brewery, further expanding Tilray's footprint in the craft beer market and enhancing its product portfolio.
• February 2024 - American Brew Crafts launched Flying Monkey, a Belgian-style craft beer, in Hyderabad. This hazy amber beer features a creamy head, bold and robust flavors, and a smooth texture. Flying Monkey offers a unique flavor profile designed to elevate the craft beer experience and appeal to adventurous beer drinkers in the Indian market.

Analyst Opinion

As per our analysis, the global craft beer market is experiencing significant growth, driven by rising automotive production and sales, as well as the increasing industrial development in rapidly growing economies across the Asia Pacific region, such as India, China, Japan, and South Korea. These regions are witnessing a shift in consumer preferences, with a growing demand for unique and locally produced beverages, including craft beer.

Moreover, the expansion of disposable income and the rising popularity of premium, artisanal products are contributing to the growing craft beer consumption. This combination of economic growth, evolving tastes, and increasing production capacity is expected to fuel the continued expansion of the craft beer market in the coming years.