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

Light Beer Market Size

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.

Light Beer Market Growth Factors

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.

Light Beer Market Restraining Factors

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.

Light Beer 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

North america is a dominant region with 2.1% market share

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 fastest growing region with 2.7% market share

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.

Light Beer Market Growth Factors

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.

Light Beer Market Restraining Factors

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.

Light Beer 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.

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.