Light Beer Market Size, Share & Trends Analysis Report By Product (Regular Light Beer, Flavored Light Beer, Low-Alcohol Light Beer, Non-Alcoholic Light Beer), By Packaging (BottlesCans, Kegs), By Distribution Channel (Retail Stores, On-Premise Venues, Online Retailers, Wholesale) and By Region(North America, Europe, APAC, Middle East and Africa, LATAM) Forecasts, 2024-2032

Market Overview

The global Light Beer market size was valued at USD 394.49 billion in 2023 and is estimated to reach an expected value of USD 385.50 billion by 2032, registering a CAGR of 2.5% during the forecast period (2024–2032).

The origin of beer dates to the early Neolithic period and is one of the oldest beverages and the most consumed alcoholic beverage in the world. Light beer is generally prepared using four basic ingredients namely, malted cereal grains, hops, water, and yeast, which are subjected to fermentation over a period. In addition, flavoring ingredients, such as herbs and fruits, are used in beer. There are various types of beers available in the market; among which, ale and lager are the two commercially consumed beers. The primary difference between other beer and light beer is that it contents lower alcoholic content and has lower calories.

The consumption of beer has increased in recent years due to a rise in disposable income and changes in consumer preferences. In addition, the unprecedented rise in the youth population and surge in female drinkers has fueled the growth of the light beer market. Moreover, the consolidation of on-premises distribution channels has further supplemented the market growth.

Market Dynamics

Market Drivers

Changing Consumer Preferences

Most of countries in the world have witnessed rapid urbanization and improvement in their financial conditions. This has led to an overall rise in the disposable income of the people. In addition, this has made way for shift in consumer preferences, especially among young, aspirational drinkers in the developed economies such as Europe and North America, toward different and modern beer from traditional beer and rum. The population is gradually inkling toward healthy alcohol drink such as light beer owing to their low calorie, and lower alcohol content.

Increase in the Number of On-Premise Distribution Channels

This factor majorly fuels the global light beer market. On-premise distribution channels, such as restaurants, cafes, discos, and bars serve beer and special cocktails containing light beer. The on-premise distribution channels have witnessed higher demand with the rise in disposable income and change in consumer preferences. Increments in the number of restaurants and bars have resulted in greater consumption of these beverages, as people increasingly prefer on-premise drinking rather than off premise drinking.

Market Restraint

Volatile Raw Materials Prices

The raw materials used in beer manufacturing are affected by volatile prices, which in turn impedes market growth. These beverages are produced from crops, which are not produced adequately due to drought and other environmental issues, thus creating a supply–demand gap in the industry. This factor lowers their production as well as increases product pricings, which impede the growth of the market.

Market Opportunities

Development of Naturally Sweetened, Healthier Alcoholic Drinks

Recent developments in honey-derived products appear to be a viable alternative to produce innovative alcoholic drinks for consumers, and drive the future growth of this industry. Through fermentation of honey beer, many innovative drinks, such as sherry type wine, fruit-honey wine, and different types of meads are obtained.

These products are launched in various flavors depending on the floral source of the honey, the yeast used in the fermentation, and use of different additives. For instance, Anheuser-Busch introduced natural light naturdays strawberry lemonade beer in the U.S. market to increase their market penetration.

By incorporating this method, new innovative products are generated, which suit customer preferences and are available as premium products. As beer can be made by such techniques and since beer is considered to be one of the highest quality, sophisticated, and premium alcoholic beverages, it has a huge opportunity to be successful in the market.

Regional Analysis

Based on region, the market is analyzed across North America, Europe, Asia-Pacific, and LAMEA.

North America was the highest revenue contributor, and is estimated to grow at a CAGR of 2.1%. The light beer category in the U.S. market has grown exponentially. This surge in the growth of the light beer in the U.S. market is driven by social media and local events/promotions, who associates the light beer with high-quality products, sustainability and local produced products. While in Canada, the growing health trend has been impacting in the sale of light beer in this region. Due to which the sale of no/low alcohol beer in the Canadian market has surged and has occupied a large chunk of the beer market. Whereas, the majority of the Mexican people prefer lagers, pilsners and light & dark beers. The large consumption of light beer in this region has grown significantly, which lead to the opportunity of formation newer brewer in this region. In addition, the low alcohol beer in the Canadian region has made new opportunities of market growth.

Europe is the second largest region. It is estimated to reach an expected value of USD 410 billion by 2031, registering a CAGR of 2.7%. Germany is one of the major consumers of beer in this region and has a preference for top fermented beers, which include light beers. UK is another top beer consumer country, which also prefers top fermented beers. While France is also a predominant player in beer consumption, where the majority of the population has a preference for bottom fermented beers. So, the varying countries has different preference for different style of beer in the European region. With the increase in beer consumption in the European region, which lead to the increase in the number of brewers in the region. Which make new opportunities for enhancing the employment rate and improving the economy of the many countries in the region. In addition, businesses selling food do not need alcohol license to serve beer below 3.5% ABV (alcohol by weight), thus boosting the light beer market growth.

Asia Pacific is the third largest region. Asia-Pacific import most of its beer culture from the western world. The craft beer trend in the Asia-pacific region has been growing at faster rate but the volume to meet the demand of craft beer has been at a slower pace. This is due to the low reachability of the distribution channel in craft beer breweries. The Asia-Pacific region is a highly attractive growth region for the beer market. This is due to the high growth in population, where young population is high. Furthermore, the rising income levels and urbanization has been the key driver for beer market in the Asia-Pacific region.

Segmental Analysis

The global light beer market is segmented into production, package, distribution channel, and region.

By Production Analysis

Based on production, the market is categorized into macro-brewery, micro-brewery, craft brewery, chips, and others. The craft brewery segment was the highest contributor to the market, and is estimated to grow at a CAGR of 2.5% during the forecast period. The production volume for craft beer in America increased by 5% in the first two quarters of 2017, however, it was slightly less than the growth achieved in the mid of 2016. According to the Chief Economist of the Brewers Association, the growth rate for small craft brewers have been estimated to be progressive in coming 5 years in the matured beer market. The number of craft breweries in the U.S. and Europe accounted for 86% of total craft breweries, globally. This was mainly due to the growing consumer preference for craft beer. Moreover, increasing consolidation and expansion strategy among major industry brewers have boosted the growth of craft industry. Furthermore, international beer breweries have been proactively promoting their light beer brands to increase their outreach in North America.

The micro-brewery segment is the second largest. Micro-breweries have been steadily gaining popularity in the market, and are competing with other beer players operating in the market. Nowadays, customers prefer different flavored light beer, which in turn is expected to fuel the demand for microbreweries. Micro-breweries have been gaining importance in the light beer market due to their redefined flavors and special ingredients added to the final product. “Collaboration” is a unique tradition introduced by Microbreweries, wherein two breweries mutually share their concepts of brewing, i.e. techniques, technologies, and processes. Nowadays, customers prefer flavored beer, which in turn has fueled the demand for micro-brewery market. Microbrews are infused with handcrafted techniques and native flavors that give them an edge over their counterparts. This unique feature has led to an increasing demand for light beers. The experimenting nature of consumers with respect to taste and variety of flavors has boosted the growth of the light beer market, especially in North America and Europe.

The macro-brewery segment is the third largest. Nowadays, consumers are shifting their preference toward other alcoholic drinks such as light beer to enjoy different variety of flavors. Macro-breweries have launched new flavored light beers to attract customers. Moreover, companies have focused on acquiring craft breweries to expand their market outreach and sustain the growing competition from craft breweries. In 2015, Anheuser-Busch acquired Seattle-based Elysian Brewing Company, which is known for its award-winning portfolio of beers. Several companies have introduced new beer products in the market to cater to the changing taste of customers. Increasing disposable income has fueled the growth of the light beer market, especially in emerging economies such as India. Increasing demand for light beer in developed and developing Asian countries, such as China and India, is expected to boost the light beer market in the near future.

By Package Analysis

 Based on package, the market is categorized into glass, pet bottle, metal can, and others. The pet bottle segment was the highest contributor to the market, and is estimated to grow at a CAGR of 2.8% during the forecast period. Various beer manufacturers have started switching from glass bottles to PET packaging owing to its superior physical properties such as high design flexibility, lightweight, and recyclability. PET bottles are up to 86% lighter as compared to its glass counterpart, which is expected to significantly improve supply chain performance; thereby, reducing packaging-related production cost. PET bottle can withstand pressures of 20 pasteurization units (PU) in the tunnel, which is standard for lagers, and retains a stable base after pasteurization. Moreover, PET bottles provide high impermeability to gases; and thus, provides high resistance to oxygen uptake and carbon dioxide loss thereby providing a shelf life up to six months. Pivovarna Laško, d.d. came up with the 0.38-liter PET packaging for beer followed by 0.5-liter and 1.0-liter PET multilayer packaging. SABMiller plc. launched Haywards 5000, Knockout, and Foster's beer brands in 1-liter PET bottles in the Indian subcontinent.  Thus, increased investment in R&D for PET bottles is expected to open new opportunities for the market players.

The glass segment is the second largest. Glass is the most classic form of packaging light beer, which keeps it cool for longer time than the other packaging choices available. It preserves beer well, with many beer drinkers favoring the aesthetically pleasing glass bottle over a can. Many manufacturers have embraced the artistry of branding by creating beautiful designs for their labels. In addition, glass offers transparency, can be reused, and recycled many times, and is made from natural raw materials such as silica, limestone, and soda ash, which make it a sustainable packaging material. Glass bottles are used to gives the premium edge, and provide the brand with both a sustainable and aesthetically stunning packaging solution. Moreover, sunlight-activated inks on light beer glass bottle labels as well as the interactive ignite feature give the unique art an added punch. For instance, Heineken and DDB & Tribal Amsterdam in collaboration developed the ‘Heineken Ignite’, which ignites responding to external cues from the consumer and the outside environment. Such innovative glass packaging expected to open new opportunities for the market player.

By Distribution Channel Analysis

Based on distribution channel, the market is fragmented into hypermarkets & supermarket, on-trade, specialty stores, convenience store, and others. The hypermarkets and supermarkets segment was the highest contributor to the market, and is estimated to grow at a CAGR of 2.9% during the forecast period. Hypermarket/Supermarket is gaining popularity owing to availability of a broad range of consumer goods under a single roof, ample parking space, and convenient operation timings. Moreover, increase in urbanization, rise in working class population, and competitive pricing boosts the popularity of hypermarkets in developed and the developing regions. Moreover, presence of store associates for helping the customers to choose the right product and provide product knowledge boosts the growth of the segment. Thus, the above-mentioned factors drive customers to prefer this distribution channel over others for the purchase of light beer products. Therefore, the supermarket/hypermarket distribution channel are fueling the growth of market in terms of value sales.

Impact of covid-19

Recent Developments

November 2022 - HEINEKEN is hosting its 2022 Capital Markets Event on December 1st and 2nd.  At the event, our Executive Team will share progress and further detail on EverGreen, HEINEKEN’s strategy to shape the future of beer and beyond

September 2022 - HEINEKEN Vietnam officially unveiled its largest brewery in Vietnam. Covering an area of 40 hectares in My Xuan A Industrial Zone, Phu My – Ba Ria Vung Tau, and with an annual capacity of 11 million hectolitres, HEINEKEN Vietnam Vung Tau Brewery prides itself as the largest of all breweries in South East Asia.