Craft Beer Market

Craft Beer Market Outlook (2024 to 2034)

Revenue from the global craft beer market is estimated at US$ 93.97 billion in 2024 and has been forecasted to increase at a CAGR of 7.2% to reach a market value of US$ 187.99 billion by the end of 2034.

A community exists within the world of craft beer that is passionate about the style of beer and enjoys drinking it. As a result of the appeal of trying different types of beer, people are drinking craft beer more widely. Growing demand from consumers for distinctive, artisanal, and locally made beer with various varieties driving market expansion. Craft breweries offer consumers an alternative to popular beer selections by emphasizing creativity and quality over mass production.

Small breweries produce craft beer, which is a natural product made with natural ingredients derived from local resources. Due to the presence of natural ingredients, it also has several health benefits. Growing demand in the market is attributed to the growing number of flavors and creative styles in beer. Increasing number of restaurants, pubs, and bars in various cities is driving the craft beer market growth.

Key Market Growth Drivers

• The craft beer market size expanding due to consumer demand for unique and creative flavors, particularly from those who are looking for different flavor sensations that deviate from regular beer options.
• Small breweries and local artists are gaining popularity and their sales are increasing as consumers are moving toward them because they mostly make beer with natural ingredients that have various health benefits as well.
• Due to the increasing number of brewpubs and craft brewers, sales of craft beer are rising because of increased availability and accessibility.
• Craft brewers are attracting a larger audience base as they combine traditional brewing methods with premium and natural ingredients, particularly consumers who are looking for high-end products.
• Expansion of craft beer tourism is positively affecting the market as tourists visit breweries as part of their vacation plans.
• Craft beer sales are rising as they becoming more widely accessible as it is now found in more stores and via online delivery services.
• Because craft beer contains more natural ingredients and fewer additives, some consumers view it as a better option compared to regular variants.
• A key craft beer market trend is increasing promotions through reviews, shares, or social media from consumers, which is pushing their visibility and sales.

Report Attributes	Details
Craft Beer Market Size (2024E)	US$ 93.97 Billion
Forecasted Market Value (2034F)	US$ 187.99 Billion
Global Market Growth Rate (2024 to 2034)	7.2% CAGR
East Asia Market Share (2024E)	23.7%
North America Market Value (2024E)	US$ 20.36 Billion
Non-Alcoholic Segment Value (2034F)	US$ 67.09 Billion
Stout Segment Value (2034F)	US$ 34.89 Billion
Key Companies Profiled	Anheuser-Busch InBev SA/NV; Heineken Holding N.V; Boston Beer Company Inc.; Molson Coors Brewing Co.; Duvel Moortgat NV; FIFCO USA; Bells Brewery Inc.; D.G Yuengling & Sons Inc.; Sierra Nevada Brewing Co.; Stone Brewing Co.; New Belgium Brewing Company; MillerCoors LLC; Mark Anthony Brands Inc.; Alaskan Brewing Company; Coca-Cola FEMSA; American Brew Crafts Pvt Ltd (ABCL); Best Day Brewing; uGeist Brewing Co

Why is Craft Beer Gaining Popularity Globally?

“Beer Enthusiasts Looking to Try Out Different Flavors”

Craft beer is gaining popularity across the globe because of increasing consumer desire for new and distinctive flavors. Today beer enthusiasts are actively searching for unique flavour profiles that differentiate their offerings from mass-market beers. To meet this demand, craft breweries experiment with various ingredients, brewing methods, and flavor profiles to produce beer that is both unique and customized to the preferences of certain customers. Customers' desire for quality and diversity is encouraging them to try craft beer, which contributes to its growing market share.

What’s Negatively Impacting Market Expansion of Craft Beer?

“High Production Cost Compared to Regular Beer”

Production of craft beer is costly compared to larger or mainstream breweries. Their usage of smaller batch sizes, which leads to less effective economies of scale, is the main cause of this. Furthermore, the use of premium ingredients and artisanal brewing techniques by craft brewers raises the cost of manufacturing. These elements are reducing their profitability and decreasing their power to set prices, which makes it difficult for them to stay competitive while upholding high standards of quality.

Country-wise Insights

The East Asia region is estimated to account for 21.7% of the worldwide craft beer market share in 2024 due to the increasing number of new craft breweries opening and growing consumers' interest in trying out different tastes. Western and Eastern Europe holds a long history of brewing beer, which is attracting various craft beer manufacturing companies in these regions. The United Kingdom, Germany, and Belgium are among the countries where the craft beer movement is gaining traction.

What Makes the United States a Lucrative Market for Craft Beer Manufacturers?

“Increasing of Craft Beer Tourism Industry”

Attribute	United States
Market Value (2024E)	US$ 16.65 Billion
Growth Rate (2024 to 2034)	6% CAGR
Projected Value (2034F)	US$ 29.84 Billion

In the United States, the popularity of craft beer tourism increasing as breweries are offering new experiences such as guided tours, tasting sessions, and special events. These events not only draw tourists looking for interesting and different experiences, but they also improve breweries' visibility. Craft brewers are boosting sales and attracting a customer base with different strategies such as social media, gorilla marketing, and others. This is increasing interest in their products and broadening market reach. The United States also holds a long history of beer and consumers widely consume it, because of this reason various craft beer manufacturers are aiming at this market.

Which Factors are Increasing Market Growth Opportunities in Japan?

“Innovative Craft Breweries Providing High-Quality and Unique Drinking Experiences”

Attribute	Japan
Market Value (2024E)	US$ 4.1 Billion
Growth Rate (2024 to 2034)	7.3% CAGR
Projected Value (2034F)	US$ 8.31 Billion

The rise of creative craft breweries in Japan is greatly increasing the demand for craft beer. These breweries stand out for their innovative brewing methods, experimenting with unusual ingredients and brewing processes to create one-of-a-kind, premium beer. Their emphasis on quality products and artisanal techniques is attracting customers looking for unique and high-quality drinking experiences. This innovation drives market expansion in Japan by increasing the variety of beer options and making craft beer more appealing to consumers seeking distinctive drinking experiences.

Category-wise Insights

Based on sales channel, the market is segmented into microbreweries, brewpubs, contract brewing companies, and independent regional craft brewing companies. The microbreweries hold a significant market share as they provide consumers with the freedom to choose different flavors and styles according to their preferences. Microbreweries are typically smaller than larger national beer companies. These breweries produce beer in small quantities that are available only in their local markets.

Why is Consumption of Non-Alcoholic Craft Beer Pretty High?

“Trending Sober Curious Movement Boosting Demand for Non-Alcoholic Craft Beer”

Attribute	Non-Alcoholic
Segment Value (2024E)	US$ 32.19 Billion
Growth Rate (2024 to 2034)	7.6% CAGR
Projected Value (2034F)	US$ 67.09 Billion

Demand for non-alcoholic craft beer is high compared to other brewers due to it being appealing to a broad range of consumers. Without the joyful sensations of alcohol, non-alcoholic craft beer provides a comforting flavor and communal experience. Its popularity is also influenced by the expanding mindful drinking movement and the desire for inclusive social events.

Additionally, increasing trending sober curious movement is boosting the consumption of non-alcoholic craft beer with more individuals choosing to decrease or avoid alcohol consumption while still seeking enjoyable social experiences. Because of the different flavors offered by the craft beer providers, individuals are getting attracted and to avoid alcohol consumption they are shifting toward non-alcoholic products.

Why is Stout Craft Beer Gaining Popularity Worldwide?

“Consumers Looking for Strong & Full-bodied Beer”

Attribute	Stout
Segment Value (2024E)	US$ 18.76 Billion
Growth Rate (2024 to 2034)	6.4% CAGR
Projected Value (2034F)	US$ 34.89 Billion

Based on product, the demand for stout craft beer is high compared to other types. Rich and complex flavors replete with hints of coffee, chocolate, roasted malt, and others are properties of stouts, boosting its popularity. Customers who prefer strong and full-bodied beer are finding this depth of flavor appealing. Also, stouts come in various styles such as milk, imperial, and oatmeal stouts, each having distinct qualities that attract people with different taste preferences.

Stout craft beer is considered as versatile and can be enjoyed in several settings from dining experiences to pubs. They are a preferred choice of a lot of people because they go well with a wide range of cuisines such as sweets and heavy dishes.

Competitive Landscape

Key players in the craft beer market are focusing on developing new flavors and styles to attract consumers and meet different taste preferences. Several companies are using social media to run effective marketing strategies to attract a larger audience.

• World of Brands (WoB), an AlcoBev company, has planned to grow its manufacturing facility and domestic market presence with its ready-to-drink craft beer brand in Karnataka, India. The business recently partnered with a contract manufacturing facility in the North Karnataka town of Mudhol.
• In July 2024, the top craft beer firm in South India, uGeist Brewing Co., extended its reach to the tranquil beaches of Puducherry, offering a taste of its renowned brews. The Bengaluru-based brewery, which is well-known for its commitment to quality and creativity, now delights locals and visitors alike with its tasty craft beer, which comes in six unique varieties.
• In July 2024, Best Day Brewing announced the debut of Nature's Pils, a limited-edition non-alcoholic beer created in collaboration with The Conservation Alliance.
• On August 12, 2021, Coca-Cola FEMSA, the Mexican Bottling company, confirmed its acquisition of the Brazilian beer brand Therezopolis to enter the Brazilian craft beer market.

Fact.MR provides detailed information about the price points of key manufacturers of craft beer positioned across the world, sales growth, production capacity, and speculative technological expansion, in this updated market report.

Segmentation of Craft Beer Market Research

• By Product:

  • Brown Ale
  • Pale Ale
  • Porter
  • Stout
  • Pale Lager
  • Pilsner
  • Marzens
  • Bocks

• By Brewer:

  • American Sour
  • Non-Alcoholic
  • Belgian Fruit Lambic
  • Flanders Red Ale
  • Belgian Gueuze

• By Sales Channel:

  • Microbreweries
  • Brewpubs
  • Contract Brewing Companies
  • Independent Regional Craft Brewing Companies

• By Region:

  • North America
  • Western Europe
  • Eastern Europe
  • Latin America
  • East Asia
  • South Asia & Pacific
  • Middle East & Africa