One Quarter of Craft Beer Market Revenue Spurred by Pale Ales Consumption: Fact.MR
Published : 21 Sep 2021 Industry: Food & Beverage
Revenues in the craft beer market grew at a robust pace, with sales expected to surpass US$ 87 Bn as of 2021, infers a newly published report by Fact.MR. Overall, the industry is likely to reach US$ 174.72 Bn by 2031, growing at a CAGR of 7.18% across the 2021-2031 forecast period.
Historical analysis suggests that the market expanded at a steady pace, registering a CAGR of nearly 5% from 2016 to 2020. According to the report, the market was valued at over US$ 81 Bn by the end of the said historical period. While prospects declined in the first half of 2020 due to COVID-19, growing reliance on instant beverage consumption during the lockdown prompted e-commerce giants to partner with leading beverage manufacturers, thus widening availability of craft beer across a broad spectrum of the adult population.
Many factors go into creating a unique beer or ale and it is also hard to define exactly what makes it craft. Still, it is most commonly associated with small, independent breweries that make unique products. Businesses are using different flavors for gaining customer attention, such as honey, fruits, sweet and sour, spicy, tart, and funky flavors in the markets.
Key Takeaway from the Market Study
- By product, pale ale to experience maximum sales, capturing 25% of total revenue
- By sales channel, microbreweries to remain prominent, clocking a CAGR of 5.2% through 2031
- Asia to emerge as the largest craft beer market, experiencing a Y-o-Y expansion of 37.3% in 2019
- Europe to account for 41% of global craft beer demand, with an increase in premium brands consumption
- North America to be an opportunistic craft beer market, capturing over 1/3rd of global revenue
“The growing interest in the use of natural ingredients and natural flavors to produce craft beers is opening up the marketplace to a range of natural flavors that are increasing in demand,” says a Fact.MR analyst.
Strategic collaborations enable manufacturers to increase production and meet consumer demand, which will increase revenue and market share. New products and technologies will enable end-users to benefit from products that are eco-friendly by nature.
- On 2nd February 2021, Heineken acquired a majority stake of London's Brixton Brewery, transforming it into a wholly-owned subsidiary. Through this acquisition, both companies will be able to maintain strong working relationships. Brixton Brewery has also made it to the top of its priority list in its seven-year history.
- On 9th September 2021, Lion, one of the major business holders in the field of Alcoholic beverages, completed a full acquisition of Australian Craft Brewers Company Stone and Wood. By acquiring full ownership of Farmentum Group, the parent company of Stone and Wood, Lion may also be able to acquire many overseas brands like Little Dragon, Fixation, and Sunny Seltzer.
More Insights Available
Fact.MR's, in its new offering, presents an unbiased analysis of the craft beer market, presenting historical demand data (2016-2020) and forecast statistics from 2021 to 2031.
The study divulges essential insights on the market based on product (brown ales, pale ales, porters, stouts, pale lagers, pilsners, marzens, bocks and other products), brewer (american sour, non-alcoholic, belgian fruit lambic, flanders red ale, and Belgian gueuze), and sales channel (microbreweries, brewpubs, contract brewing companies and independent regional craft brewing companies), across seven major regions of the world (North America, Latin America, Europe, East Asia, South Asia, Oceania, and the Middle East & Africa)
Fact.MR’s Domain Knowledge in Food & Beverages
Our food and beverages consulting team guides organizations at each step of their business strategy by helping you understand how the latest influencers account for operational and strategic transformation in the food and beverages sector. Our expertise in recognizing the challenges and trends impacting the global food and beverages industry provides indispensable insights and support – encasing a strategic perspective that helps you identify critical issues and devise appropriate solutions.
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Sr. Consultant – Food and Beverages