Global Statistics Representing Beer Market Trend
Making beer at a residential scale in a home is known as home brewing while commercial production is known as a brewery. Beer is a widely preferred alcoholic beverage around the world and thus, breweries witness significant investments. Major players in the beverages industry are rapidly penetrating in developing countries to gross high market share. Additionally, the availability of different types of beer with variation in taste and alcohol content drives its consumption, globally. Emerging markets such as China, India, Brazil, Mexico, and others have significant growth potential in the beer market.
In recent years, the beverages industry has been witnessing sound growth on account of a growing young population and increasing demand for alcohol products. Among the different alcohol-based products, beer accounts for a massive share as it is one of the oldest preferred drinks in the world. It is majorly produced from malted barley, wheat, maize, and rice. Production of beer involves the fermentation process, which produces ethanol and further leads to carbonation in the beer. In modern beer production, hops are used as one of the ingredients to add bitterness and other flavors as well as act as a preservative. The production process involves various stages such as malting, mashing, boiling, and fermentation. Growing development of local beers that have a domestically preferred taste is a further impetus to market growth across regions.
The global beer market was valued at USD 620,120 billion in 2018 and is expected to reach a value of USD 743842 billion with an anticipated CAGR of 2.3% during the forecast period, 2019–2026.
The global beer market has been segmented on the basis of product, category, packaging, and production.
By product, the beer market has been segmented into light beer and strong beer. Strong beer is preferred over light beer, especially by millennials. Light beer is expected to gain traction with people becoming more and more health-conscious as light beer contains only 110 calories and its alcohol percentage is generally 3 to 4.5% lower than strong beer.
On the basis of category, the beer market has been segmented into normal, premium, super premium.
Normal beer is expected to gain traction, owing to its reasonable price point, and global players are developing normal beers for lower income groups, which likely to open a new market for them. For instance, SABMiller, the world's second largest brewing company, is targeting low-income consumers to tap the bottom of the pyramid consumers by creating a differentiated pricing model to protect the affordability of lower income group people.
Based on packaging, the beer market has been segmented into canned, drought, bottled. Bottled beers are expected to contribute to the largest market share during the forecast period, 2019–2026. This can be attributed to the benefits associated with bottling beer; it avoids the risk of the flavor being impacted by its container, helps keep beer refreshingly chilled for a longer time, and adds to the aesthetic appearance as glass bottles are available in various shapes and colors. Moreover, bottling beer is a tradition that many authentic brewers have not strayed from.
In terms of production, the market has been segmented into microbreweries and macro breweries. The microbreweries segment is expected to witness prominent growth in the global beer market. A microbrewery can be described as a beer production unit that can produce not more than 15,000 barrels a year. Mostly, microbreweries produce specialty beers that are usually crafted to showcase a special ingredient.
Beer Market Regional Insights with trends
Geographically, the global beer market has been segmented into five regions, namely North America, Europe, Asia Pacific, and Latin America and the Middle East & Africa (LAMEA).
Asia Pacific is expected to grow at the fastest CAGR in the global market during the assessment period 2019–2026. This growth can be largely attributed to the growing consumption of alcoholic beverages and the presence of developing economies that are witnessing economic growth and globalization. China, India, Japan, and others are highly populated countries with strong demand for beer. China is one of the leading consumers of beer as it contributes approximately a quarter of the share in the global beer market. Presence of a huge population, growth of local players offering various types of beers, rising middle-class population, and the growing popularity of beer festivals drive market growth. International players are targeting potential regions with lucrative prices and intense marketing strategy to enhance consumption.
Europe is expected to contribute the second most prominent market share, owing to the region’s huge consumption and presence of traditional breweries. According to The Brewers of Europe, breweries in Europe generate 2 million jobs and 50 billion euros in government’s revenue. The Czech Republic is a country that registered the first place with the highest beer consumption per capita in the world. The country has a strong beer culture and various traditional breweries, which have now been converted to hotels, which further emphasizes beer importance in the country.
Earlier, developed countries such as the U.S., and Canada contributed half the beer consumption in the world, but with time, beer consumption in various developed as well as developing countries has been increasing, which is expected to drive market growth across regions. Many countries where traditional drinking spirits such as vodka and wine were earlier popular have been witnessing a decline in these alcohol types and growth in beer consumption.
Latin America and the Middle East & Africa region accounts for the least market share in the beer market. Middle Eastern countries expected to experience sluggish beer market growth, owing to culture prohibition against liquor consumption, China’s beer market is entering a new era, and it finds itself needing to satisfy a new set of craving whereas Africa is expected to witness rapid growth in the beer market.
Beer Market Key Players
Some of the key players in the global beer market are Anheuser-Busch InBev, Boston Beer Co., Sapporo Breweries, Tsingtao Breweries, Asahi Breweries, Carlsberg Breweries A/S, Heineken N.V., Grupo Modelo, Molson Coors Brewing Company, Kirin Brewery, and Yanjing Brewery.
Beer Market Segmentation
Beer Market Regions Covered
Why Buy This Report?
Major players are strategically expanding their business in the developing regions in the Asia Pacific and highest share grossing parts of the Asia Pacific region expecting to grow their business further. For instance, 20 new and fresh beers including craft beers were launched in India in summer 2018.
Major players are also launching new and improved products in the beer market for gaining a higher share of the market. Launch of new products along with strategic advertisement and branding changes market scenario, which is likely to affect the beer market in the near future.
Our report covers the alcoholic beverages market insights, focusing on recent trends and developments in the market in different regions and development strategies of the companies. Moreover, the following sections are specifically covered in the report.