Beer Industry Overview:
Global beer market is expected to garner $688.4 billion by 2020, registering a CAGR of 6% during the forecast period 2015-2020. Besides this, the aforementioned industry is likely to register a CAGR of 6% during the forecast period, 2015 - 2020. A significant increase in the consumption volume is believed to fuel the market growth across developing regions. Beer is a yeast fermented alcoholic drink prepared from malt, and flavoured by adding hops.
Popular in Neolithic Europe, its production dates back as far as 2050 BC. By 7th century AD, the alcoholic drink was being produced and marketed by several monasteries in Europe. This drink is majorly brewed from ingredients such as yeast, water, hops and malted barley. Fermentable carbohydrates, such as wheat, rice and maize, are added to produce different styles as well as flavours. Beer style categorizes this alcoholic beverage by factors including flavour, production technique, ingredients, color, and origin, of which ale and lager are the two commercially popular types. Ales use top fermenting yeast at a room temperature, on the contrary lagers are made with bottom fermenting yeast below 10° Celsius. Imported beers and super premium beers continue to increase in terms of popularity among consumers given the increasing disposable income. Furthermore, the growing health consciousness among drinkers has led to demand for non-alcoholic beers.
The global sales figures are following an upward trend. Many brands are now experiencing tremendous success due to the rise in the disposable income and changing lifestyle of consumers. Exploiting a niche segment, matured markets are also witnessing a dramatic shift in the high-calorie beer market trends and have developed a taste for low-calorie beer. Likewise, continuous popularity of craft brew has paved way for a new generation of producers. Alternatives to glass, such as PET, makers are using durable yet ductile, affordable, and sustainable packaging solutions such as cans. Consumption statistics also disclose a rapid growth in the number of female drinkers.
Beer Market Analysis by Product Type
World’s largest brands have uncorked and positioned their wide portfolio of strong and light brew in the domestic and international market, which now occupies a major chunk of their total business. The market for strong brew is expected to garner about $464 billion in sales by 2020. Besides this, the strong beer industry is likely to register a CAGR of 6.5% during the period 2015‐2020. In the Western hemisphere, taste and refinement are the prime factors for drinkers. Which is why, many consumers prefer strong brews due to their high alcohol content. In close competition are the light brews that have low calorie and alcohol count. Light brews have exploited the desire of the health-conscious drinkers to stay healthy.
Beer Industry Market Analysis by Production
Breweries are categorized into macro-breweries and micro-breweries based on the production volume or size. The official war between them is on, with craft brew companies continuously increasing their production capability. Macro-breweries are offering quality and quantity across greater distances. At the same time micro-breweries are benefitting too. Likewise, the emergence of breweries in less saturated locales across the global avenues is another welcome news. Recent changes in drinking preferences have considerably increased the demand for micro-breweries, which is anticipated to register a CAGR of 9.3% during the period of 2015‐2020. Larger number of discerning consumers are now shifting towards the craft beer, owing to its distinct taste and quality. So, with varieties of flavour, micro-breweries are relentlessly expanding because of the growing demand for craft beer.
Industry by Category
Growing sales of premium, and super premium beers have shrugged off all doubts about the dip in the consumption volume. Consumers are increasingly opting to experiment with locally produced premium and international beer varieties. Most brewers now recognize that the premium brews industry would stay the most attractive segment. Premunization is significant that aims at targeting the highspending customers. The premium beer segment is anticipated to register a CAGR of 6.4% during the period of 2015‐2020, when compared to the super premium and normal beer segment. Besides this, the super-premium beers are witnessing a rapid growth in the business and would grow threefold. The grocery outlets today make up a major part of alcohol sales in terms of value. This presents a greater opportunity for the superpremium beers to grow via channelized expansion. Moreover, the normal beer occupied the largest markets share of about 43% of the total beer industry in 2014.
Industry by Packaging
The packaging plays a vital role when it comes to influencing the customers’ buying pattern. Available in bottles, cans, or draught these drinks are delivered with care and consideration. In line with the growing sales of beers, such as ales, new and flavoured drinks in bottles are making waves. However, with this acceleration, canned brews are giving an intense competition to their bottled and draught peers. There is a growing demand for canned brew, which can be easily stored as well as transported. Further, what makes canned the first choice is the fact that it protects the content from external heat. Alongside this factor, the range of established draught beer continue to expand in the competitive business environment.
Industry by Geography
Over the 300 years of ale’s existence in North America, customers’ demand have constantly pushed the segment forward with steady revenue growth. Next, exposure of consumers to craft beer has created immense opportunities for craft beer manufacturers and a greater population responded to it with further support. In Europe, the relaxed brewing mandates have stabilized the consumption volume, which fell significantly in the past two years. Emerging economies are also gaining significant importance for the major international beer brands, as sales in some matured regions still lag. Increased sales in Latin America and Asia has empowered producers to economize out complete sales growth. The Asia-Pacific beer market is expected to garner about $202.4 billion in sales by 2020. Besides this, the market is expected to register a CAGR of 7.3% during the period 2015-2020.
Beer Industry Competitive Analysis
To acquire a major chunk of the market, beer producers are now expanding their distribution channels in emerging markets. Merger and acquisition news have hovered over the brew sector for years, with many domestic and international brewers considering tieup at some point. Likewise, multinational producers continue to make huge investments to expand their market reach and trump up collaboration with domestic operators, to enable consumers in exploring the local and international beer varieties.
KEY BENEFITS OF BEER MARKET
- The market research report conducts an extensive analysis of the overall beer market growth, coordinated with the current and future trends. This aims at elucidating the potential investment pockets in the industry.
- The conventional techniques of market research apply explicit approach to highlight the overall attractiveness of the industry. The analysis further singles out the profitable trend to help brands gain a stronger foothold in the market.
- The report enables readers to arrive at a definitive pattern of the major market drivers, restraints and opportunities.
- Qualitative analysis ensures robust finding on the market status and estimation through 2015‐2020, to highlight the financial potential of the segment.
- Porter's Five Forces model and SWOT analysis provides a mixedmethodology research to measure the potency of the buyers & suppliers in the industry.
- Value chain analysis in the report provides a clear understanding on the roles of stakeholders in the value chain.
Beer Market Segmentation and Scope
- Strong Beer
- Light Beer
- Micro Brewery
- Super premium
- North America
- Asia Pacific
- Heineken N.V.
- SABMiller Plc.
- Anheuser-Busch InBev
- Carlsberg Group
- United Breweries Group (UB Group)
- Diageo Plc.
- Tsingtao Brewery
- Molson Coors Brewing Company
- Boston Beer Company
- Beijing Yanjing Brewery