Craft Beer Market Size, Share & Trends Analysis Report By Distribution (On-trade, Off-trade), By Region (North America, Europe, APAC, Central & South America, MEA), By Country (U.S., Germany, Australia, Japan), And Segment Forecasts, 2018 - 2025

Industry Insights

The global craft beer market size was valued at USD 85.02 billion in 2015 and is expected to witness significant growth over the forecast period owing to the increasing penetration of the product in countries including South Africa, Australia, New Zealand, and Brazil. The rising consumer preference for flavored and low ABV beer is expected to be the key aspects of the market growth.

The growing awareness among the consumers with respect to the wide range of flavors and styles of the craft beer coupled with low alcohol by volume (ABV) percentage is expected to drive demand over the forecast period. Furthermore, the growing number of craft beer enthusiasts in the U.S., Germany, Belgium, UK and Japan is expected to have a positive impact on the market.

U.S. craft beer market revenue, by distribution, 2014 - 2025 (USD Billion)

The U.S. market experienced sluggish growth post-introduction period of the product, owing to the consumer preference for mainstream beer over craft beer. However, advancement in the brewing process and the use of premium quality raw materials has improved the overall characteristics of the product, which has intrigued the attention of the consumers.

The global number of craft brewers is increasing rapidly on account of the growing demand for the product. The microbreweries count in Europe increased over 740 breweries from 2014 to 2015; this increase can be attributed to the growing consumption of the product in the region, even though the overall beer consumption is decreasing in most countries of the region.

IPA, amber lager, and amber ale are the most preferred beer among the different styles of craft beer. These styles are mostly consumed through different hospitality distribution channels in developed countries. This can be attributed to the high price of craft beer in bars, restaurants, etc. coupled with high consumer spending capacity.

The government in countries including Australia, New Zealand, Belgium, Mexico, China, and UK are promoting the production of craft beer and incorporation of new breweries on account of the positive contribution of the industry towards economic development and employment generation.

Distribution Insights

The on-trade distribution refers to the sale of the alcoholic drinks in bars, restaurants, clubs, pubs and other distribution channels in the hospitality industry. The on-trade craft beer is expensive as compared to off-trade; as a result, the craft beer market is growing substantially in developed economies on account of the high hospitality industry growth coupled with high consumers’ spending ability.

Off-trade distribution (distribution through retail stores, wholesalers, and online stores) market is expected to witness significant growth in developing and emerging economies on account of the low to medium consumer buying power. In addition, the growing penetration of the product in countries including Brazil, China, India, and Mexico with increasing consumer spending power is expected to compliment the growth over the next nine years.

Regional Insights

Europe is expected to account for the largest market share in terms of value as well as volume. High consumption coupled with consumer preference for flavored brews is expected to drive craft beer market growth over the projected period. Germany and UK are the largest consumers of this spirit accounting for over 25% of the overall revenue share.

Global craft beer market, by region, 2015 (%)

The Middle East & Africa (MEA) and Central & South America are expected to be the fastest growing regions owing to the rising penetration of the product in Brazil and South Africa. Low ABV with a wide range of flavors is expected to be the major factor for the market growth in these countries. In addition, the increasing penetration in United Arab Emirates is likely to contribute to the market growth over the next nine years.

The market in North America is expected to witness growth on account of the shift in the consumer preference for craft brews over the mainstream beer. The U.S. is expected to account for the largest market share with Mexico as the fastest growing country in the region.

Craft Beer Market Share Insights

The key strategies adopted by the major players include product innovation and the introduction of the product in the high potential markets to expand their global reach. The major players include D.G. Yuengling and Son, The Boston Beer Company, The Gambrinus Company, Chimay Beers and Cheeses, Stone & Wood Brewing Co., Vagabund, Lagunitas Brewing Company and New Belgium Brewing Company.

The companies such as Chimay Beers and Cheeses have near monopoly in the local market with the global presence. The Boston Beer Company outsources the production of raw materials and distributes through direct and indirect channels.

Report Scope

Segments covered in the report

This report forecasts revenue growth at global, regional & country levels and provides an analysis on the industry trends in each of the sub-segments from 2014 to 2025. For the purpose of this study, Grand View Research has segmented the global craft beer market on the basis of distribution and region:

• Distribution Outlook (Volume, Billion Liters; Revenue, USD Billion, 2014 - 2025)

  • On-trade

  • Off-trade

• Regional Outlook (Volume, Billion Liters; Revenue, USD Billion, 2014 - 2025)

  • North America

    • U.S.

  • Europe

    • Germany

    • UK

  • Asia Pacific

    • China

    • India

    • Japan

    • Australia

    • New Zealand

  • Central & South America

    • Brazil

  • Middle East & Africa

    • South Africa