Beer Kegs Market Size, Share & Trends Analysis Report By Material (Steel, Plastic, Others), By Capacity, By Application (Commercial, Residential), By Region, And Segment Forecasts, 2024 - 2030

Beer Kegs Market Size & Trends

The global beer kegs market size was valued at USD 71.4 million in 2023 and is projected to grow at a CAGR of 7.3% from 2024 to 2030. Some of the key driving factors for the growth of this market are rising beer consumption worldwide, especially among millennials, an increase in disposable income levels, growth in demand for premium category flavored beers, and increased accessibility & availability of beers through multiple offline channels and online platforms.

In recent years, environmental awareness and sustainability have gained significance in the operations and management of the business. Some of the key companies in this market are adopting innovative strategies in terms of packaging and storage by utilizing planet-friendly and recyclable materials to meet their sustainability goals. This aspect has driven demand for steel beer kegs in the recent past. Companies are also investing in various recycling initiatives to address environmental issues and pursue sustainability. Innovations such as beer kegs systems installed at various locations are expected to contribute to the market expansion by ensuring maximum availability to the consumers.

According to globalEDGE, total global beer consumption was 166 billion liters in 2023. New product launches by key companies and ease of availability fuel the growing beer consumption. Global trade also plays a role in growing beer consumption in developing economies. The availability of international beer products, increasing beer imports in multiple countries, and a rise in disposable income levels are expected to generate greater demand for the beer kegs industry in the approaching years.

Materials Insights

Steel beer kegs segment dominated the market and accounted for a share of 85.3% in 2023. The higher levels of adoption are attributed to features offered by steel kegs such as the ability to get recycled, durability, and enhanced assistance in preserving the original flavour and freshness of the beer stored in it. These properties make it ideal for transportation, and storage and also help in blocking essential gases and the possibility of contamination. Moreover, stainless steel kegs are cost-effective and used for longer periods, ensuring maximized return on investment.

Plastic-based beer kegs segment is expected to experience a significant CAGR during the forecast period. This is attributed to multiple factors such as rising demand for craft beers, recycling trends in the industry, cost-effective features associated with plastic kegs, versatility and ease of use offered by the material, and reduction in theft & loss. The lighter weight, variety in terms of size and flexibility in fitting the production lines are expected to generate growth for this segment in upcoming years.

Capacity Insights

The 20-40 litres kegs segment accounted for the largest market revenue share in 2023. This type of keg is mainly designed for home brewing, in-house dispensing arrangements, and bar beer dispensing. These kegs can be conveniently stored in kegerators, coolers, or standard domestic fridges. Moreover, 20-40L beer kegs made out of stainless steel have a slim design, which aids consumers’ daily consumption and provides maximum reliability. Growing beer consumption through beer cafes and changing consumer behavior patterns are projected to drive the growth of this segment.

The 40-60 litres keg segment is expected to register the fastest CAGR during the forecast period. Kegs are considered to be more affordable than bottles used for the storage of beverages, so they serve as a low-cost long-term storage option for beer. With the rising demand for environmentally friendly solutions, 40-60 litre capacity stainless steel kegs can be mostly preferred. Additionally, these are ideal kegs for commercial use and transportation.

Application Insights

Commercial segment dominated the market in 2023. Beer kegs are preferred over alternatives, as they serve as a cost-effective and efficient way to transport and store the beer when produced in higher quantities in industries. Additionally, kegs are available in different sizes, shapes and materials making them viable for intended use. Some of the barrel kegs used for commercial purposes are sixth barrel kegs, half-barrel kegs, euro kegs, DIN kegs and so on. It is important to maintain the flavour, freshness and quality of beer, therefore industries need to wisely search for ideal kegs, resulting in innovations in materials used for kegs.

Residential segment is projected to grow at the fastest CAGR over the forecast period. With an increase in demand to facilitate storage and dispensing of beer at home, market players are designing new products such as HomeBrrew kegerator, and portable draught beer system. Moreover, there are various small-sized and low-capacity kegs available in the market fueling the overall demand. Additionally, the use of materials such as stainless steel has made it easy to recycle the used kegs and attain sustainability goals as well.

Regional Insights

North America beer kegs market was identified as a lucrative region in this industry. This is attributed to the rising awareness of sustainability, innovation-backed new product launches and growing demand for products such as keg systems. In addition, technological advancements and their applications in the region, are contributing towards manufacturing cost-effective and efficient beer kegs. Moreover, the evolving culture and changing lifestyle play a major role in rising market demand in this region.

U.S. Beer Kegs Market Trends

The U.S. beer kegs market is expected to grow rapidly in the upcoming years due to rising investments by key players in beer keg manufacturing and new product development according to consumer preferences. Rising demand for beer kegs in the hospitality industry of the U.S. is projected to generate higher demand for the market in upcoming years.

Europe Beer Kegs Market Trends

Europe beer kegs market dominated the global industry with a revenue share of 29.5% in 2023. This is attributed to the rising consumption of beer in the region, constant lifestyle changes, the presence of large enterprises from industry operating in the region and ease of availability. Moreover, microbreweries are gaining popularity due to their unique flavour and ability to produce multiple varieties of products on a smaller scale. This has been driving growth for beer kegs delivered in specialized sizes. The presence of organizations such as The Brewers of Europe, which brings together more than 10,000 breweries and companies from 28 countries in the region, adds to the growth of this industry.

The beer kegs market in Germany dominated the market with significant revenue share in 2023 due to the large volume of beer consumption, the presence of multiple breweries and companies in the country and increasing demand for efficient transportation and storage solutions. Trends related to consumer preferences, the emergence of the zero-alcohol beer market and enhanced distribution targets set by the key companies of the industry are expected to generate an upsurge in demand for this market.

Asia Pacific Beer Kegs Market Trends

Asia Pacific beer kegs market is anticipated to witness the fastest growth during the forecast period. This growth is attributed to the rapid increase in investments in technology research related to the market. Presence of countries such as China and India that contribute to very high consumption rates every years, growing availability of international brands in the region, and government initiatives encouraging sale of beers over other sort of liquors are projected to develop lucrative growth for the regional industry.

China beer kegs market held noteworthy revenue share of the regional industry. This market is primarily driven by the growing beer consumption, availability of premium and flavored products, large volumes of import from international markets, presence of multiple international brands in the country and growing need for effective transportation and storage solutions.

Key Beer Kegs Company Insights

Vendors are focusing on implementing strategies such as mergers and acquisitions to increase product offerings and gain a competitive edge in the industry. Therefore, key players are expanding their production and adopting innovative advancements aiming to fulfil maximum customer needs.

• American Keg Company LLC is a U.S.-based company that manufactures high-quality stainless steel kegs. Their skilled craftsmen use food-grade 304 stainless steel.

• SCHÄFER Werke GmbH is a German company involved in manufacturing plastics, fabricated metal products, and architectural and structural metals. It focuses on quality, maximum customer satisfaction, and innovation.

Recent Developments

• In April 2024, the international business division of MicroStar Logistics, Kegstar, commenced the buildout of its new flagship quality service center. The 15,000-square-foot facility is located in Milton Keynes, UK. With the support of this facility, the flourishing market of beer kegs in the European region is expected to attain its sustainability goals rapidly in the coming years.

Beer Kegs Market Report Scope

Global Beer Kegs Market Report Segmentation

This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2018 to 2030. For this study, Grand View Research has segmented the global beer kegs market report based on material, capacity, application, and region.

• Material Outlook (Revenue, USD Million, 2018 - 2030)

  • Steel

  • Plastic

  • Others

• Capacity Outlook (Revenue, USD Million, 2018 - 2030)

  • Less than 20 Liters

  • 20-40 Liters

  • 40-60 Liters

  • Above 60 Liters

• Application Outlook (Revenue, USD Million, 2018 - 2030)

  • Commercial

  • Residential

• Regional Outlook (Revenue, USD Million, 2018 - 2030)

  • North America

    • U.S.

    • Canada

    • Mexico

  • Europe

    • Germany

    • UK

    • France

    • Italy

    • Spain

  • Asia Pacific

    • China

    • Japan

    • India

    • Australia & New Zealand

  • Latin America

    • Brazil

  • Middle East and Africa (MEA)

    • South Africa