Newly released data from Fact.MR shows that global demand for craft beer is expected to reach US$ 87.34 Bn in 2021. The market was valued at US$ 76.3 Bn in 2019, reaching US$ 81.64 Bn in 2020, reflecting a Y-o-Y increase of 6.9%. In the long-run, the market is projected to be valued at US$ 174.68 Bn by 2031, representing a 2x increase throughout the 2021-2031 assessment period.
Key Points Addressed in Craft Beer Industry Analysis
- Market Estimates and Forecasts (2016-2031)
- Key Drivers and Restraints Shaping Market Growth
- Segment-wise, Country-wise, and Region-wise Analysis
- Competition Mapping and Benchmarking
- Brand Share and Market Share Analysis
- Key Product Innovations and Regulatory Climate
- COVID-19 Impact on Craft Beer and How to Navigate
- Recommendation on Key Winning Strategies
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Consumption Analysis of Craft Beer from 2016-2020 compared to 2021-2031
According to Fact.MR, a market research and competitive intelligence provider, from 2016 to 2020, the global market for craft beer expanded at a CAGR of almost 5%. Globally, a vast majority of people consume craft beer. Craft beer culture is growing every day. A craft beer culture would not exist without consumers and brewers.
Amidst the pandemic crisis, sales dwindled drastically, especially in the first half of 2020. Imposition of a global lockdown crippled supply chain networks, disrupting logistical arrangements to make the end product available to customers. However, as the year progressed and infections plateaued, these restriction were lifted, restoring sales prospects.
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 frequently. Based on these patterns of consumption, the market is anticipated to surpass a CAGR of 7% across the 2021-2031 forecast period.
What is Driving Demand for Craft Beer in Recent Years?
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.
As a consequence of the recent implication of one of the major factors in the development of craft beer, go-green technology was incorporated into the beer manufacturing process to increase market growth and innovate new ways of reducing waste and water usage. The development of craft beers in the last several years has also been largely attributed to the proliferation of canning.
With the increase in the number of restaurants, pubs, and bars in the cities, the demand for craft beer on the market is growing. A proliferating number of social trends among millennials has increased the demand for breweries in the market.
The process of canning has been related to a seven-step process that has proved to be technologically beneficial for small beer breweries.
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How does R&D Contribute to the Growth of the Craft Beer Market?
As the variety of flavors in craft beer is becoming increasingly diverse, beer researchers and developers are playing a major role in the industry. Thus, constant research is required to ensure that diversified craft beers fulfill all the requirements concerning quality and flavor.
Craft beers have gained a major market share in recent years due to the research that has been conducted on using resources grown locally to manufacture craft beer in the market. Research and development on the different ingredients in craft beers have led to different flavors and tastes such as sweet and sour, spicy, honey-like, fruity, and more.
Moreover, researchers have made a significant contribution to figuring out the biggest base for craft beer and expanding it effectively to grow economically and geographically. To learn more about the use of raw materials in the manufacture of craft beer, researchers conduct a wide variety of research activities, such as studying barley, wheat, cereals, starch, and yeast. Researchers are studying the genetic variations of each material used in this process, as well as research on the role of endogenous enzymes that are produced during the production process.
Why is North America an Emerging Craft Beer Hub?
North America is likely to hold the largest share of the growing demand for craft beer until 2031. The variety of independent microbreweries and the production of craft beer in a large volume has become the major reason behind the success of craft beer in the American market.
Independent breweries and the support of small businesses have helped boost the market for craft beers. They have greatly contributed to the development of this market. According to Fact.MR, a 36% market share is anticipated for the North American craft beer industry.
Data from the Brewers Association shows Colorado and Vermont to be the state's most economically impactful craft beer drinking states. Among states with more than 21 adults, Colorado ranks first in economic impact per capita with $764, while Vermont is second with $681. These numbers represent the overall output of the craft beer industry in each state based on the 21+ population.
What factors contribute to Craft Beer Sales in Europe?
Europe has been witnessing the growth of craft breweries over the last five years and the increasing growth of the active breweries in the European market can be regarded as the support of craft beer. Premium beers have been a major trend in Europe, thus the demand has also increased dramatically, supporting the market for craft beers in these regions.
Craft beer production has grown significantly in recent years as a result of a significant increase in craft ale consumption and this has led to a positive outlook on the future of craft beer. A revenue share of 41% is expected for the European craft beer industry.
How do Prospects Appear across the Asian Market?
Asia is regarded as one of the fastest-growing markets in regards to the expansion and growth of craft beer. The growth of craft beer has been particularly strong in India and China. With a huge demand supplanted by growing incomes of the citizens, the rapid urbanization, and the growth of the beer companies, the market has grown significantly in recent years.
Additionally, growing demand for new varieties of existing craft beers has proven to be a major contributor to the business' resurgence in the competitive market. Additionally, various consumers throughout the region have praised the smooth, subtle taste of these new beers in the markets.
The proliferation of small and independent craft breweries is another reason for their success in these regions. Craft beer is growing much more quickly in the Asia-Pacific region than it did last year, which is a great advantage for the industry. In Asia, craft beer sales grew 37.3% in 2019, up from 33.68 % in 2018, which is an advantage for the industry.
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How are Pale Ales Attracting Consumer Attention?
Amongst all craft beer products, pale ales are one of the most popular choices for consumers, with Indian pale ales (IPA) gaining maximum traction. There is a touch of bitterness in the taste of the Indian pale ales that have become the trademark of this product.
Their unique flavor and taste make them highly sought-after in the market. Even though other products have grown in popularity quite rapidly throughout the years, IPA and Haze IPA will always make the top list of consumer demands. In addition, IPA helps in the establishment of healthy bones and also assists in maintaining good health. A market share of 25% is expected for this segment.
Why do Microbreweries Account for Maximum Craft Beer Sales?
According to Fact.MR, microbreweries market share is expected to grow by a CAGR of 5.2% through 2031, with regard to craft beer sales. Growing demand for small and independent breweries in the market has raised the demand for craft beers in the market.
The largest market share in the competitive craft beer market belongs to microbreweries 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.
Strategic collaborations enable manufacturers to increase production and meet consumer demand, which will increase revenue and market share. The advent of new products and technologies will allow end-users to enjoy products that can be flavored by nature.
- On October 1st, 2020, AB InBev, one of the largest breweries in the world, completed the long-awaited acquisition of the Craft Brew Alliance. Further, AB InBev purchased the remaining 68.8% shares with $220 million gaining full ownership over the firm.
- On August 12, 2021, Coca-Cola FEMSA, the Mexican Bottling company, confirmed its acquisition of the Brazilian beer brand Therezopolis to acquire the Brazilian Craft Beer market.
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Market size value in 2020
|USD 87.36 Billion|
Market forecast value in 2031
|USD 174.72 Billion|
Historical Data Available for
|US$ Mn for Value & Mn Liters for Volume|
Key Regions Covered
Key Countries Covered
Key Market Segments Covered
Key Companies Profiled
Available upon Request
Key Segments Covered
- Brown Ale Craft Beer
- Pale Ale Craft Beer
- Porter Craft Beer
- Stout Craft Beer
- Pale Lager Craft Beer
- Pilsner Craft Beer
- Marzens Craft Beer
- Bocks Craft Beer
- Other Craft Beer Products
- American Sour Craft Beer
- Non-Alcoholic Craft Beer
- Belgian Fruit Lambic Craft Beer
- Flanders Red Ale Craft Beer
- Belgian Gueuze Craft Beer
- Craft Beer Sales via Microbreweries
- Craft Beer Sales via Brewpubs
- Craft Beer Sales via Contract Brewing Companies
- Craft Beer Sales via Independent Regional Craft Brewing Companies
Craft Beer Market- Scope of Report
A recent study by Fact.MR on the craft beer market offers a 10-year forecast for 2021 to 2031. The study analyzes crucial trends that are currently determining the growth of the market. This report explicates on vital dynamics, such as the drivers, restraints, and opportunities for key market players along with key stakeholders as well as emerging players associated with offering craft beer.
The study also provides the dynamics responsible for influencing the future status of the craft beer market over the forecast period. A detailed assessment of value chain analysis, business execution, and supply chain analysis across regional markets has been covered in the report. A list of prominent companies operating in the craft beer market, along with their product portfolios, enhances the reliability of this comprehensive research study.
The study offers comprehensive analysis on diverse features, including production capacities, demand, product developments, revenue generation, and sales of craft beer across the globe.
A comprehensive estimate on the market has been provided through an optimistic as well as a conservative scenario, taking into account the sales of craft beer during the forecast period. Price point comparison by region with global average price is also considered in the study.
Key Questions Answered in Report
- Which are the most lucrative craft beer markets?
- Which factors will impact the growth of craft beer?
- How will changing trends impact the strategies of market players?
- How can market players capture the low-hanging opportunities across regions?
- Which companies are leading the craft beer industry?
- What are the winning strategies of stakeholders in the market?
Analysis on Market Size Evaluation
The market has been analyzed for each segment in terms of volume (Mn Liters) and value (US$ Mn).
Estimates at global and regional levels for craft beer are available in terms of “US$ Mn” for value and in “Mn Liters” for volume. A Y-o-Y growth contrast on prominent market segments, along with market attractiveness evaluation, has been incorporated in the report. Furthermore, absolute dollar opportunity analysis of all the segments adds prominence to the report.
Absolute dollar opportunity plays a crucial role in assessing the level of opportunity that a manufacturer/distributor can look to achieve, along with identifying potential resources, considering the sales and distribution perspective in the global craft beer market.
Inspected Assessment on Regional Segments
Key sections have been elaborated in the report, which have helped deliver projections on regional markets. These chapters include regional macros (political, economic, and business environment outlook), which are expected to have a momentous influence on the growth of the craft beer market during the forecast period.
Country-specific valuation on demand for craft beer has been offered for each region, along with market scope estimates and forecasts, price index, and impact analysis of the dynamics of prominence in regions and countries. For all regional markets, Y-o-Y growth estimates have also been incorporated in the report.
Detailed breakup in terms of value & volume for emerging countries has also been included in the report.
In-depth Analysis on Competition Analysis
The report sheds light on leading manufacturers of craft beer, along with their detailed profiles. Essential and up-to-date data related to market performers who are principally engaged in offering craft beer has been brought with the help of a detailed dashboard view. Market share analysis and comparison of prominent players provided in the report permits report readers to take preemptive steps in advancing their businesses.
Company profiles have been included in the report, which include essentials such as product portfolios and key strategies, along with all-inclusive SWOT analysis on each player. Company presence is mapped and presented through a matrix for all the prominent players, thus providing readers with actionable insights, which helps in thoughtfully presenting the market status, and predicting the competition level in the craft beer domain.
In Fact.MR’s study, a unique research methodology is utilized to conduct extensive research on the growth of the craft beer industry, and reach conclusions on the future growth parameters. This research methodology is a combination of primary and secondary research, which helps analysts ensure the accuracy and reliability of the drawn conclusions.
Secondary resources referred to by analysts during the preparation of the market study include statistics from governmental organizations, trade journals, white papers, and internal and external proprietary databases. Analysts have interviewed senior managers, product portfolio managers, CEOs, VPs, marketing/product managers, and market intelligence managers, all of whom have contributed to the development of the research report as a primary resource.
- FAQs -
As of 2020, craft beer sales were valued at above US$ 81 Bn according to Fact.MR
From 2016 to 2020, craft beer sales expanded at nearly 5% CAGR
By 2021-end, craft beer sales will likely amount to over US$ 87 Bn
The craft beer market is poised to expanded at a CAGR of 7.18% until 2031, reaching US$ 174.68 Bn
As per Fact.MR, tier-1 companies account for 70-74% of the craft beer revenue share
Asia is likely to be the most promising craft beer landscape, experiencing a 37% Y-o-Y growth in 2019
Europe is likely to capture 41% of global craft beer demand by 2031
Over 1/3rd of global craft beer revenue will be stimulated by North America
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Is the market research conducted by Fact.MR?
Yes, the report has been compiled by expert analysts of Fact.MR, through a combination of primary and secondary research. To know more about how the research was conducted, you can speak to a research analyst.
What research methodology is followed by Fact.MR?
Fact.MR follows a methodology that encompasses the demand-side assessment of the market, and triangulates the same through a supply-side analysis. This methodology is based on the use of standard market structure, methods, and definitions.
What are the sources of secondary research?
Fact.MR conducts extensive secondary research through proprietary databases, paid databases, and information available in the public domain. We refer to industry associations, company press releases, annual reports, investor presentations, and research papers. More information about desk research is available upon request.
Who are the respondents for primary research?
Fact.MR speaks to stakeholders across the spectrum, including C-level executives, distributors, product manufacturers, and industry experts. For a full list of primary respondents, please reach out to us.
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