Beer Market Research, 2034
Market Introduction and Definition
The global beer market was valued at $650.2 billion in 2023, and is projected to reach $873.0 billion by 2034, growing at a CAGR of 2.7% from 2024 to 2034. Beer is an alcoholic beverage made from fermented grains, typically barley, water, hops, and yeast. It's one of the oldest and most widely consumed drinks in the world. The primary types of beer include lagers and ales. Lagers, fermented at lower temperatures, are crisp and clean, with popular styles like Pilsner and Bock. Ales, fermented at warmer temperatures, are often more robust and fruitier, encompassing styles such as Pale Ale, IPA, Stout, and Porter. Other categories include wheat beers, which use a significant proportion of wheat, and specialty beers that may include various fruits, spices, or other flavorings. Each type offers unique flavors and characteristics, catering to diverse tastes.
Key Takeaways
The beer market study covers 20 countries. The research includes a segment analysis of each country in terms of value ($Million) for the projected period 2023-2034.
More than 1, 500 product literatures, industry releases, annual reports, and other such documents of major beer industry participants along with authentic industry journals, trade associations' releases, and government websites have been reviewed for generating high-value industry insights.
The study integrated high-quality data, professional opinions and analysis, and critical independent perspectives. The research approach is intended to provide a balanced view of global markets and to assist stakeholders in making educated decisions in order to achieve their most ambitious growth objectives.
Key Market Dynamics
Health-conscious consumers are increasingly seeking beverages that offer the social benefits of beer without the associated health risks of higher alcohol content. This shift is particularly evident among younger generations, who prioritize wellness and moderation. As a result, breweries are innovating to create flavorful, low-alcohol, and alcohol-free options that cater to this growing demographic. These alternatives not only attract new consumers but also retain existing ones who may otherwise reduce their beer consumption for health reasons, thus driving beer market size.
In addition, the increasing availability and variety of low-alcohol and alcohol-free beers are expanding the market. Retailers and bars are dedicating more shelf and menu space to these products, making them more accessible to a broader audience. This trend is further amplified by marketing campaigns highlighting the health benefits and lifestyle compatibility of these beers. The surge in demand for low-alcohol and alcohol-free beer also encourages breweries to invest in research and development, leading to continuous improvement in taste and quality. Consequently, this growing segment is driving overall market growth and diversifying the beer market share offerings.
Growing awareness of the negative health effects associated with excessive alcohol intake, such as liver disease, cardiovascular issues, and addiction, prompts many consumers to reduce their beer consumption or abstain entirely. Public health campaigns and educational initiatives highlight these risks, further discouraging consumption. Additionally, medical guidelines advocating for lower alcohol intake contribute to this trend, leading to a more cautious approach toward beer consumption among health-conscious individuals. Moreover, the rise of wellness and fitness trends has intensified the focus on healthier lifestyles, which often exclude or limit alcohol. Consumers are increasingly prioritizing beverages that align with their health goals, leading to a preference for non-alcoholic or low-calorie alternatives over traditional beer.
The increasing demand for premium and specialty beers creates significant opportunities in the beer market by allowing breweries to diversify their product offerings and cater to sophisticated consumer tastes. As consumers become more discerning, they seek unique and high-quality beer experiences, driving the growth of premium and specialty segments. This trend enables breweries to experiment with diverse ingredients, brewing techniques, and flavor profiles, resulting in innovative products that stand out in a crowded market. By focusing on quality and exclusivity, breweries can attract a loyal customer base willing to pay a premium for distinctive beers, thereby boosting profit margins and brand prestige. In addition, the rise in demand for premium and specialty beers fosters collaboration and partnerships within the industry. Breweries collaborate with local artisans, farmers, and even other beverage producers to create limited-edition, seasonal, or region-specific brews. Furthermore, this trend provides additional revenue streams and marketing opportunities, reinforcing the beer market position and contributing to overall beer market growth.
Value Chain of Beer Market
The beer market value chain begins with raw material suppliers, primarily providing barley, hops, yeast, and water. Farmers cultivate barley and hops, while specialized companies produce yeast strains. Next, maltsters process the barley into malt, a crucial ingredient for brewing. Breweries then combine these ingredients to produce beer through various brewing processes. After fermentation and packaging, the finished product moves to distributors, who manage logistics and transportation to different retail channels. These channels include supermarkets, liquor stores, bars, restaurants, and other outlets where consumers can purchase beer. Throughout this chain, equipment manufacturers supply brewing and packaging machinery, while marketing and advertising agencies help promote beer brands. Regulatory bodies oversee quality control, licensing, and taxation at various stages. Finally, consumers complete the chain by purchasing and consuming the beer, with their preferences and buying habits influencing future production and marketing decisions. This interconnected system involves numerous stakeholders, each adding value to the final product that reaches the consumer.
Market Segmentation
The beer market is segmented into type, category, packaging and region. On the basis of type, the market is divided into lager, ale, stout & porter, malt and others. As per category, the market is segregated into popular-priced, premium and super premium. On the basis of packaging, the market is bifurcated into glass, bottle, can and others. Region wise, the market is analyzed across North America, Europe, Asia-Pacific, Latin America and Middle East and Africa.
Regional/ Country Market Outlook
The Asia-Pacific region is the most dominant beer market due to several key factors. Firstly, it boasts a large and rapidly growing population, with countries like China and India contributing significantly to the overall beer consumption. The rising disposable incomes and urbanization in these countries have led to increased consumer spending on alcoholic beverages, including beer. Moreover, the region's cultural acceptance and integration of beer into social and celebratory occasions further fuel demand. In China, for instance, beer is a staple in both urban nightlife and traditional festivities.
In addition, the Asia-Pacific market is characterized by a robust expansion of local breweries and international beer brands establishing a presence. This growth is supported by a burgeoning middle class with a taste for premium and imported beers, driving diversification in beer offerings. The region also benefits from favorable regulatory environments in certain countries, encouraging both production and consumption. Innovations in distribution channels, particularly through e-commerce platforms, have made beer more accessible to a wider audience. Furthermore, strategic marketing campaigns tailored to local tastes and preferences have successfully captured the interest of consumers. All these factors collectively contribute to the Asia-Pacific region's dominance during the global beer market forecast.
Industry Trends:
According to a report by the Brewers Association, in 2023 U.S. beer production and imports were down 5% in 2023, while craft brewer volume sales declined by 1%, raising small and independent brewers’ share of the U.S. beer market by volume to 13.3%.
Breweries are aiming to reduce water usage, with some companies achieving a 50% reduction in water consumption per liter of beer produced in recent years.
Competitive Landscape
The major players operating in the beer market include Anheuser-Busch InBev, Beijing Enterprises Holdings Limited, Carlsberg Group, Diageo PLC, Dogfish Head Craft Brewery, Inc, Heineken Holding NV., Squatters Pubs and Craft Beers, Sierra Nevada Brewing Co., The Boston Beer Company, Inc, and United Breweries Limited.
Recent Key Strategies and Developments
In April 2023, BIRA 91 introduced two new limited-edition beers, the 022 Session Ale and 011 Gully Pilsner as well as customized merchandise paid homage to the Mumbai Indians and Delhi Capital cricket teams.
In June 2023, Heineken made strategic adjustments to cater to changing market dynamics in Vietnam. This included enhancing local production capabilities and introducing new product lines to meet the evolving preferences of Vietnamese consumers.
Key Sources Referred
- World Bank
- Brewers Association
- National Beer Wholesalers Association
- USDA Foreign Agricultural Service
- Food and Agriculture Organization (FAO)
- Tax and Trade Bureau (Tobacco & Alcohol)
- U.S. Department of Treasury
- International Institute of Refrigeration
Key Benefits For Stakeholders
- This report provides a quantitative analysis of the market segments, current trends, estimations, and dynamics of the beer market analysis from 2024 to 2034 to identify the prevailing beer market opportunities.
- The market research is offered along with information related to key drivers, restraints, and opportunities.
- Porter's five forces analysis highlights the potency of buyers and suppliers to enable stakeholders make profit-oriented business decisions and strengthen their supplier-buyer network.
- In-depth analysis of the beer market segmentation assists to determine the prevailing market opportunities.
- Major countries in each region are mapped according to their revenue contribution to the global market.
- Market player positioning facilitates benchmarking and provides a clear understanding of the present position of the market players.
- The report includes the analysis of the regional as well as global beer market trends, key players, market segments, application areas, and market growth strategies.
Beer Market Report Highlights
| Aspects | Details |
 Market Size By 2034 | USD 873.0 Billion |
 Growth Rate | CAGR of 2.7% |
 Forecast period | 2024 - 2034 |
 Report Pages | 306 |
 By Type |
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 By Category |
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 By Packaging |
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 By Region |
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 Key Market Players | United Breweries Limited, Diageo plc., Squatters Pubs and Craft Beers, The Boston Beer Company, Inc., CARLSBERG GROUP A/S, Dogfish Head Craft Brewery, Inc., Sierra Nevada Brewing Co., Beijing Enterprises Holdings Limited, Heineken Holding NV., Anheuser-Busch InBev SA/NV |
Analyst Review
Beer is one of the most popular alcoholic beverages and is widely consumed across the globe. Some of the leading players quenching the thirst of beer consumers around the world are Heineken N.V. and Anheuser-Busch InBev. Rise in disposable income, changes in lifestyle, and wide acceptance of beer as a refreshment beverage drive the growth of the global beer market. By type, lager and ale dominate the global beer market; however, there is an observed increase in the consumption of malt among the consumers. This is accredited to inclination of the consumers toward exploration of different flavors of beer. The market is experiencing several changeovers in the recent years, due to intense rivalry among competitors and decrease in growth rate of loyal consumers owing to rise in awareness toward health. To combat the issues, the lager manufacturers have lowered the selling price; however, this takes a toll on their marginal profit. In addition, craft beers are significantly gaining popularity over other breweries, and grabbing a pie of the beer giants such as Heineken N.V. and Anheuser-Busch InBev.
The premium beer is witnessing high market demand in Western Europe, the U.S., and Australia. Whereas in Spain, there is a high demand for value-based priced products over premium beers. Therefore, beer manufacturers focus toward product innovation to cater across all income groups.
Upcoming trends in the global beer market include increasing demand for craft beers, sustainable brewing practices, low-alcohol and non-alcoholic options, innovative flavors, and enhanced digital marketing strategies.
The leading application in the beer market is the retail sector, which includes supermarkets, liquor stores, bars, and restaurants. This sector drives the majority of beer consumption and sales globally.
Asia-Pacific region dominates the beer market in 2023.
The global beer market was valued at $650.2 billion in 2023.
The major players operating in the beer market include Anheuser-Busch InBev, Beijing Enterprises Holdings Limited, Carlsberg Group, Diageo PLC, Dogfish Head Craft Brewery, Inc, Heineken Holding NV., Squatters Pubs and Craft Beers, Sierra Nevada Brewing Co., The Boston Beer Company, Inc, and United Breweries Limited.
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