Industry Trend Analysis
The global craft beer market is expected to be around $505 billion by 2025. Due to rising preference of consumers for flavored beer, this market is expected to grow significantly over the forecast period. Rising demand for beer with low alcohol by volume (ABV) has also contributed to the growth of this market around the world. Growing number of craft beer admirers around the world will drive the market growth in coming years.
Distribution Outlook and Trend Analysis
On trade distribution market held more than half of the total market for craft beer in 2016. In on-trade distribution, the alcoholic drinks are sold in bars, restaurants, clubs and pubs and similar channels of distribution in the hospitality industry. Comparatively, on-trade craft beer is costlier than off-trade craft beer. Hence, the market for on-trade craft beer is significantly growing in developed countries where the hospitality industry is booming. In off-trade distribution, craft beer is distributed through retailers, wholesalers, and online channels. This market has more growth prospects in emerging economies where affordability is the key to sales performance.
Regional Outlook and Trend Analysis
European dominated the global craft beer market in 2016. Rising acceptance and liking for flavored beer by the people are the key factors driving the market growth. On the basis of consumption, Germany and UK are at the forefront with more than one fourth of the total market revenue.
U.S. occupied major share of the North American craft beer market in 2016. Increased liking for low alcohol by volume (ABV) beverages in the U.S. will ensure the rapid pace of this market growth. North America will witness significant growth in the near future with more and more beer enthusiasts choosing flavored craft beer over mainstream beer.
The craft beer market is currently in the growth stage with steady progress in different territorial markets. The introduction of new flavors and brewing processes are the key areas that the producers are exploiting to gain a competitive edge over other players. For instance, in December 2016, New Belgium Brewing Company announced the introduction of four new varieties of craft beer, Dayblazer Easygoing Ale, Tartastic Lemon Ginger Sour, Citradelic Exotic Lime Ale, Bell's Brewery, Inc., and Voodoo Ranger 8 Hop Ale.
Some of the key players operating in the global craft beer market are D.G. Yuengling and Son, Inc., The Gambrinus Company, The Boston Beer Company, Inc., Chimay Beers and Cheeses, New Belgium Brewing Company, Vagabund, The Lagunitas Brewing Company and Stone & Wood Brewing Co.
With increasing preferences of beer aficionados towards low ABV flavored beverages in developed and developing countries, the craft beer market will witness an exponential growth worldwide. Introduction of new flavors and tastes with innovative marketing and promotion activities will provide huge opportunities for brewers in this market. Efficient use of distribution channels can enable small and medium brewers to sustain and grow in this lucrative market.
Craft Beer Market Segmentation:
Rest of Europe
Rest of Asia-Pacific
Rest of the World
United Arab Emirates
Some of the key questions answered by the report are:
What was the market size in 2016 and forecast from 2017 to 2025?
What will be the industry market growth from 2017 to 2025?
What are the major drivers, restraints, opportunities, challenges, and industry trends and their impact on the market forecast?
What are the major segments leading the market growth and why?
Which are the leading players in the market and what are the major strategies adopted by them to sustain the market competition?