Specialty Beer Market

Specialty Beer Market Outlook (2023–2033)

Expanding at a high-value CAGR of 11%, the global specialty beer market is predicted to increase from a valuation of US$ 17 billion in 2023 to US$ 48 billion by the end of 2033.

Off-trade channels for beer include supermarkets, wine shops, and specialty shops that sell goods at lower prices than on-trade channels. The crucial element driving the sales of fruit beer through off-trade channels is high product visibility at supermarkets and hypermarkets.

Beer, which contains iron, calcium, vitamin B, and fiber, has historically been the oldest and most popular alcoholic beverage in the world. It also provides many health benefits when eaten in moderation. Recent advancements in the beer brewing industry have led to the introduction of a diverse range of products. Since consumers are constantly looking for new drinks, the advent of delicious options has increased the consumption of these drinks.

Global demand for specialty beer in developing countries is one of the major factors boosting market growth. Due to the growing purchasing power of the middle-class population, there is a greater demand for specialty beer as customers seek out more novel products in the food and beverage sector. In addition, the millennial generation is emphasizing moderate but high-quality alcohol consumption. Specialty beer has become more well-liked among younger people due to its health advantages over mass-produced beer and the availability of novel varieties.

Consumer demand for premium beer is rising as both developed and developing countries see considerable increases in per capita income. Because of its authenticity, flavor, and brand recognition, specialty beer is favored by many people. Key vendors offer premium beer variants due to the rising demand for these drinks. Market value is driven by Millennials' preference for specialty beer.

Specialty beer, made from different fermentable and new developments, is bound to gain acceleration in the coming years. The trend that is supposed to gain traction in the specialty beer market is rising beer exports from developed regions. Market growth is marked by the increasing demand for specialty beer which is influenced by the penetration of American beer in European countries, thereby enlarging the beer market in these regions.

Moreover, the rising demand for exotic, innovative, and rear flavors of specialty beer could be a probable cause for the specialty beer market to grow. Adding to these aspects, factors such as increased disposable incomes in both developed as well as emerging economies, liking of beer taste, and growing popularity of beer as a hangout drink are set to raise the bar of the market, by impacting its growth in a much positive way.

Specialty beer is a regular beer brewed to obtain a classic taste and style with some new addition of flavors. The addition of herbs, fruits, and spices along with miscellaneous flavorings such as smoke, hot pepper, and licorice, turns an ordinary or regular beer into a specialty beer. In this category of beer, unusual fermentation techniques and fermentable are used for their production.

Report Attributes	Details
Specialty Beer Market Size (2023)	US$ 17 Billion
Projected Market Value (2033)	US$ 48 Billion
Global Market Growth Rate (2023–2033)	11% CAGR
Market Share of Fruit Beer	40%
Key Companies Profiled	Molson Coors Boston Beer Company, Inc. Sierra Nevada Brewing Co. Bell's Brewery Stone Brewing Co. Deschutes Brewery, Inc. Heineken Holding N.V Duvel Moortgat NV SweetWater Brewing Company, LLC North American Breweries Inc. Diaego Guinness USA Inc. D.G. Yuengling & Son, Inc.

Why is Specialty Beer Consumption Increasing Globally?

“Growing Adoption of Flavorful Specialty Beer among Millennials”

Specialty beer is gaining popularity among Millennials because they are more eager than other consumer groups to test new varieties and flavors. During the projection period, it is anticipated that the millennial generation will significantly contribute to the expansion of the global market. The expansion of varied cultural consumer groups and consumer social positions are two major factors boosting specialty beer consumption.

One of the key factors positively affecting the demand for specialty beer globally is the rise in taste for premium alcoholic beverages due to the rising trend of socializing and gatherings, particularly among millennials, working professionals, and young people. Additionally, the industry is expanding as more distilleries use beer as an ingredient in cocktails. The growing habit of giving beer in personalized bottles is promoting market expansion.

In addition, major firms are using e-Commerce channels to launch flavored beer in fresh varieties such as fruits and herbs. This is supporting market growth positively, along with the increasing popularity of buying beer through online distribution channels, which provide quick product availability, extensive catalogs, and quick shipping options. A further factor that is projected to have a beneficial impact on beer sales over the coming years is the substantial marketing campaigns and celebrity endorsements that product makers conduct on social media platforms.

Breweries are opening up all around the world, which is causing the business to grow. Brewers are offering innovative specialty beer and lager varieties to differentiate themselves from competitors as they create new products to meet the growing customer demand. Infused into the product is the invention of cannabidiol (CBD), a non-psychoactive component of the cannabis plant. Customers are gravitating to CBD-infused beer because they have a low caloric content and the CBD lessens the bitterness of the beer's hops, which is enhanced by terpenes' citrus flavors.

The introduction of numerous flavorful specialty beer products has caught the interest of consumers. Global specialty beer consumption has increased as a result of the use of novel flavors and ingredients. In turn, it is anticipated that this will support market expansion over the coming years.

What May Negatively Affect the Sales of Specialty Beer?

“Side Effects of Excessive Beer Intake and Easy Availability of Several Other Alcoholic Beverages”

Market growth is being hampered by the availability of several other alcoholic beverages such as gin, rum, whisky, and wine. Individuals' physical and mental health may be impacted by excessive beer intake. Throughout the forecast period, the specialty beer market will be constrained by the escalating anti-alcohol initiatives in several countries and the insufficient local supply of raw materials.

Which Region Provides Optimistic Opportunities for Market Players?

“Rapid Rise in Microbreweries in Europe”

Europe is the leading market for specialty beer, accounting for 50% of the total share due to a rise in microbreweries. The overall consumption of alcohol in Europe has decreased due to growing consumer preference for low-alcohol beverages. An increase in the consumption of specialty beer and huge demand for distinctive flavors are fueling market growth in the region.

Country-wise Insights

What is the U.S. Market Outlook for Specialty Beer?

“Growing Popularity of Specialty Beer in Young Working Population”

Market growth in the U.S. is attributed to the strong consumer preference for specialty beer. Evolving taste preferences and the increasing popularity of specialty beer among the young working population are driving market value.

Most American brewers now produce their distinctive beer. Customers can now sample new flavors as a result of this. For customers, the flavor serves as a point of uniqueness that distinguishes one beer from another. Breweries specifically target millennials because they are one of the leading groups in the U.S. population. Breweries have adopted and added fresher tastes to their beer offerings as millennials' preference for flavored beer has grown.

How is the Specialty Beer Market in Germany Faring?

“Increasing Specialty Beer Imports into Germany”

The market in Germany is forecasted to account for the leading revenue share in the global market owing to the huge customer base and increasing demand for craft beer in metropolitan centers. Specialty beer imports, to cope with the high demand for foreign beer brands, are driving market expansion in Germany.

The consumption of beer is a significant component of culture, nutrition, and tradition in Germany, which is fueling market expansion over the projection period.

What are the Growth Prospects for Specialty Beer Manufacturers in Japan?

“High Demand for Low Alcohol Content Beer in the Country”

The market in Japan is anticipated to rise during the forecast period owing to the enormous potential for corporations to establish manufacturing facilities due to the availability of skilled labor and an abundance of raw materials. One of the main reasons people accept beer in their busy schedules is due to its reviving flavor profiles and premium alcoholic appeal.

On-trade channels are expanding as a result of customers choosing dining-out trends. Increased disposable incomes, a rising desire for non-alcoholic beer, rapid urbanization, and advancing societal acceptance are boosting market value in Japan.

Category-wise Insights

Why is Demand for Fruit Beer Gaining Immense Traction?

“Growing Consumer Awareness of Health Benefits of Fruit Beer”

Based on product, the market is divided into fruit beer, herb & spice beer, smoked beer, and wassail. Fruit beer accounts for 40% share of the global market due to the growing consumer preferences for alcohol-free beer and awareness of the health benefits of fruit beer.

Demand for fruit beer is increasing due to the huge popularity of fruit beer among women as an occasional beverage. The increasing premiumization of products as well as the growing consumer awareness of the negative effects of excessive alcohol intake boosting fruit beer consumption.

Which Distribution Channel Accounts for Huge Sales of Specialty Beer?

“Off-trade Channels Gaining Traction Owing Wide Availability of Specialty Beer in Variety of Flavors”

The market is classified into on-trade and off-trade based on distribution channel. The wide availability of specialty beer in a variety of flavors is boosting sales through off-trade channels. Customers typically choose to purchase goods through off-trade channels such as supermarkets and convenience stores because they can find pre-chilled, handy bottles or cans there. Additionally, customers prefer drinking at home these days rather than in bars since it is more cozy, laid-back, and economical.

One of the most effective sales channels for distributing specialty beer around the world is off-trade. Because they are price-aware, consumers in many economies choose not to spend money on beer at pubs, bars, and other on-trade venues.

Competitive Landscape

Key specialty beer producers are concentrating on introducing and creating a wide array of products in various flavors to attract a huge client base and increase brand loyalty. Top specialty beer suppliers are actively focusing on the use of novel ingredients and process enhancements for the quality control of their current beverages. Specialty beer producers are maintaining product standards and managing the supply chain management.

For instance :

• In 2022, Sonnen Hill Brewing introduced a limited-edition fruit beer produced from Ontario fruit and barley and raspberry and blackberry. A good mix of funk, acidity, and fruit was maintained during the product's primary fermentation in stainless steel for more than a year and a half.

Key Segments of Specialty Beer Industry Research

• By Product :

  • Fruit Beer
  • Herb & Spice Beer
  • Smoked Beer
  • Wassail

• By Fermenting Style :

  • American Sour
  • Belgian Fruit Lambic
  • Flanders Red Ale
  • Belgian Gueuze

• By Distribution Channel :

  • On-trade
  • Off-trade

• By Region :

  • North America
  • Europe
  • Asia Pacific
  • Latin America
  • Middle East & Africa