Beer Market 2024-2028: Projected Growth and Key Trends

The Global Beer Market is anticipated to expand by USD 148.43 billion, with a compound annual growth rate (CAGR) of 3.72% between 2023 and 2028. This growth is driven by increasing demand in emerging economies and a rising global preference for premium beers. The Expansion of online retail for beer and the introduction of innovative flavors further fuel market growth. However, challenges such as stringent regulations and rising competition from non-alcoholic alternatives persist. Despite these obstacles, the beer market remains vibrant, continually evolving with consumer preferences and innovations.

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Market Overview and Future Projections

Growth Trajectory and Market Insights

The global beer market is on a significant growth path, driven by various factors, including the popularity of craft breweries and small-batch production. The demand for unique flavors and craft beer among consumers is fostering innovation and diversity in the market.

The direct-to-consumer (DTC) model's emergence and Gen Z's growing presence are reshaping the market landscape. Alongside traditional ales and lagers, non-alcoholic and low-alcohol beer trends are rising, driven by health and wellness concerns. Major players like Heineken are catering to diverse consumer preferences through retail stores and online platforms.

Key Factors Shaping the Market

Market Dynamics and Influencing Elements

The beer market continues to evolve, influenced by a range of factors. Traditional ingredients like malted barley, grains, hops, and yeast form the foundation for various beer styles, including stouts, lagers, and ales. Craft breweries are thriving, offering unique flavors and small-batch production to meet consumer demand for variety and quality. There's a growing trend in non-alcoholic beer, reflecting health and wellness concerns.

Key Driver: Rising Demand in Emerging Economies

The surge in beer demand in emerging economies like India, China, Brazil, Vietnam, and South Africa is a significant market driver. Factors such as changing lifestyles, rapid urbanization, increasing disposable income, and growing popularity among millennials contribute to this trend. To cater to this demand, global companies are enhancing their distribution channels and promoting online sales in these regions. .

Significant Trends: Flavored Beer Innovations

The introduction of new beer flavors is a notable trend in the market. The growing popularity of flavored beer is driven by the increasing number of consumers globally. Craft beers, in particular, are bringing new flavors to the market, setting beers apart and acting as a point of differentiation for consumers. Millennials, known for their experimental preferences, are a key target segment for breweries incorporating newer flavors into their offerings.

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Major Challenge: Health Concerns

Health concerns related to beer consumption pose significant challenges to the market. Prolonged consumption of alcoholic beverages can lead to various health issues, including physical and mental problems. Growing awareness about health and the inclination toward healthy lifestyles have encouraged the consumption of healthier drinks and beverages.

Market Segmentation and Packaging Insights

By Packaging Segment

Packaging plays a crucial role in maintaining beer quality and taste. Materials like glass, aluminum cans, and PET bottles are used for safe transport and storage. Traditional glass bottles, particularly brown ones, are popular, but lightweight metal cans and other packaging materials like wooden containers and PET bottles are also gaining traction. The bottle segment, valued at USD 410.74 billion in 2018, remains significant. Innovations like Carlsberg's biodegradable fibre beer bottles are expected to drive growth in this segment during the forecast period.

By Distribution Channel Segment

On-trade distribution channels, including restaurants, bars, pubs, and hotels, are projected to grow significantly. The rising consumption of beer at bars and pubs in regions like APAC and MEA, particularly in countries like India, China, Japan, and the UAE, is driving this growth. The expansion of bars, pubs, and restaurants is increasing sales through these channels. The popularity of craft beer among millennials is also boosting on-trade distribution.

Regional Market Insights

Key Regions for Market Growth

The Asia-Pacific (APAC) region is expected to contribute 41% to the global market growth during the forecast period. The market in APAC is fragmented, with various regional and global players. Companies in this region are focusing on mergers and acquisitions, new product launches, and expanding their presence to increase sales.

The rising number of organized retail outlets selling beer across different platforms, like hypermarkets, supermarkets, and e-commerce portals, is enhancing availability and accessibility. Additionally, steady growth is anticipated in the US and Indian beer markets.

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Competitive Landscape and Company Strategies

Companies are implementing strategies such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches to enhance their market presence.

Key players include Anheuser Busch InBev, offering beer under the Budweiser brand, and BrewDog Plc, offering products like Black Heart and Lost Lager. The market report also includes detailed analyses of the competitive landscape, providing insights into various companies' strategies and market positions.

Conclusion

In the dynamic beer market, traditional ingredients like malted barley remain crucial, supporting diverse beer styles. From macro-breweries to micro-breweries, producers connect with a global audience through personalized recommendations and targeted marketing. Environmental responsibility and health-conscious consumers are driving the demand for non-alcoholic and low-alcohol options. Contact us for tailored solution

Technavio Research

Jesse Maida

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