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The beer market size in APAC is forecast to increase by USD 59.9 billion, at a CAGR of 4.5% between 2022 and 2027. Millennials are driving a growing demand for innovative products, particularly in the beverage industry where there is a notable emergence of low-alcohol by volume (ABV) cocktails. This trend has spurred numerous launches of new products tailored to meet changing consumer preferences for lighter and healthier drinking options. The appeal of low-ABV cocktails lies in their ability to provide a social drinking experience with reduced alcohol content, aligning with broader wellness and moderation trends among younger demographics. As companies respond to this shift in consumer behavior, the market for low-ABV beverages is expanding rapidly, offering a diverse range of choices that cater to modern lifestyles and preferences.
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Gen Z is reshaping the beverage industry through their preferences for craft beers and specialty brews, driving the growth of microbreweries and innovative brewers associations. This generation favors e-commerce and direct-to-consumer channels over traditional retail stores, seeking convenience and unique experiences. The rise of online retailing sectors caters to their demand for diverse Lager, Ale, and Stouts offerings, including low-alcohol options that align with health-conscious choices. Brewing processes like slow fermentation using malted barley and malted cereal grains enhance nutritional value with protein, sodium, potassium, and calories considerations. This trend intersects with their interest in sustainable practices and high standards of living, influencing consumption patterns and tourism around microbrewery visits. As Gen Z shapes market dynamics, breweries are adapting to meet their preferences for quality, flavor diversity, and the experience-driven nature of their consumption habits.
Growing demand from Millennials is the key factor driving the growth of the market. Millennials constitute a major segment of the global population. The increasing demand for a wide range of alcoholic beverages, including beer, from Millennials is driving the growth of the beer market in APAC. Beer consumption among Millennials is higher in APAC when compared to those living in other regions. Millennials are increasingly becoming aware of the authenticity of different types of alcoholic beverages, such as value and premium beer. The interest in alcoholic beverages is mainly driven by the expanding multicultural group of consumers and the rising popularity of social media.
Moreover, the increasing popularity of pubbing and nightlife among Millennials has led to a significant increase in on-trade spending on alcoholic beverages, such as beer, in APAC. Besides, Millennials have a high inclination to visit breweries, social events, and social gatherings. Breweries cater to the growing socializing needs of Millennials by hosting trivia nights and themed events, which are spurring the sales of alcoholic beverages, such as beer. Millennials account for a major part of the demand for different varieties of beer in APAC, which will have a positive impact on the growth of the beer market in APAC during the forecast period.
Expansion of online distribution channels is the primary trend in the market growth. Distribution channels play a major role in driving the demand for any product. The advent of globalization and liberalization policies in many countries has simplified cross-border trade and expanded the scope for business-to-business (B2B) and business-to-consumer (B2C) players. Advances in technology, coupled with high Internet penetration, have had a positive impact on the online sales of goods and services globally.
Moreover, a gradual transformation in customer spending and shopping habits has amplified the growth potential of the global e-commerce market. The growth of information and communication technology (ICT), artificial intelligence, and other modern technologies has expanded the customer base and offered lucrative growth opportunities to key vendors operating in the beer market in APAC. The advent of social media and the growing adoption of smartphones has provided consumers with reliable access to a wide range of products and helped them choose the best beer available. Increasing Internet penetration, technological advances, and rising awareness about beer will contribute to the growth of the market. Steps taken by key vendors to collaborate with major online retailers will also increase their market shares during the forecast period.
Campaigns against alcohol consumption are a major challenge to the growth of the market. Campaigns against alcohol consumption launched by organizations across many APAC countries pose a threat to the growth of the beer market in APAC. An increase in the incidence of alcohol abuse and alcohol-related accidents in countries, especially among the younger population, has led to many regulatory and social service organizations launching campaigns against alcohol consumption and the manufacturers of alcoholic drinks. This is affecting the demand for alcoholic drinks globally. Vendors often face charges or lawsuits that harm their image. They also need to engage in social responsibility programs, including campaigns against drunken driving and abuse and underage drinking.
However, the governments of various countries are also coming up with new campaigns that are targeted at reducing alcohol consumption among consumers. In December 2016, the Department of Health of Hong Kong introduced a new campaign titled Young and Alcohol-Free, which aimed at reducing alcohol consumption among the younger population. The Alcohol Think Again campaign in Western Australia is another campaign aimed at reducing alcohol consumption and alcohol-related issues in the state. Such campaigns negatively affect the demand for alcohol, including alcoholic drinks like beer. Thus, the launch of campaigns against alcohol consumption is expected to hamper the growth of the beer market in APAC during the forecast period.
The market forecasting report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their market growth analysis strategies.
Customer Landscape
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
Anheuser Busch InBev SA NV: The company offers beer under the brands Aguila, Brahma, and Budweiser.
The market research and growth report also includes detailed analyses of the competitive landscape of the market and information about key companies, including:
Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
The on-trade segments are estimated to witness significant growth during the forecast period. On-trade distribution channels, also known as on-premises distribution channels, comprise establishments that allow the consumer to consume beer at the place of purchase. The different types of on-trade distribution channels for beer include bars, pubs, clubs, restaurants, and hotels. The growth of the on-trade distribution channel is mainly driven by the rising consumption of beer at bars and pubs, especially by the millennial population. Moreover, the growing popularity of nightlife and pubbing among millennials in APAC has led to increased on-premises spending on various types of alcoholic beverages, including beer.
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The on-trade segments accounted for USD 133.85 billion in 2022 and showed a gradual increase during the forecast period. The expansion of bars, pubs, and restaurants plays a vital role in promoting the sales of beer through on-trade distribution channels. However, the on-trade distribution segment of the beer market in APAC is likely to witness certain challenges during the forecast period. Most of the beer varieties that are sold through the on-trade distribution channel tend to be priced at a higher rate than those sold through retail outlets, such as supermarkets and hypermarkets. This is because on-trade distribution channels, such as pubs, restaurants, clubs, and bars, have to pay licensing fees, excise duties, and service charges, which increases the overall cost of alcoholic beverages, including beer. Therefore, consumers prefer to buy beer through off-trade distribution channels, such as hypermarkets and supermarkets. Moreover, hotels, bars, and pubs can accommodate only a limited number of guests at a time. Limited seating capacity may limit the sales of beer, thereby resulting in reduced sales. This, in turn, is likely to hamper the growth of the segment during the forecast period.
The market research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in "USD Billion " for the period 2023-2027, as well as historical data from 2017 - 2021 for the following segments.
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The Brewers Association represents a pivotal force in promoting craft breweries amidst the dominance of macro breweries producing high alcohol content beverages. From Lagers to Ales, diverse offerings cater to varying consumer tastes, packaged in glass bottles, metal cans, or PET bottles for sale through online retailing sectors, specialty stores, and convenience stores. Ingredients like water, hops, and yeast undergo slow fermentation processes, enhancing flavors and nutritional profiles. As urbanization drives lifestyle changes and Western entertainment influences preferences, there's a rising demand for both flavored and unflavored beer, reflecting multicultural influences. Health-conscious consumers opt for low alcohol content or non-alcoholic options, appreciating their dietary fibers, amino acids, and potential health benefits such as reducing heart disease risks and aiding in cholesterol elimination. This shift underscores a wellness revolution towards moderate consumption, highlighting the appeal of alcohol-free products amidst concerns over health risks associated with excessive drinking.
Market Scope |
|
Report Coverage |
Details |
Page number |
145 |
Base year |
2022 |
Historic period |
2017 - 2021 |
Forecast period |
2023-2027 |
Growth momentum & CAGR |
Accelerate at a CAGR of 4.5% |
Market growth 2023-2027 |
USD 59.9 billion |
Market structure |
Fragmented |
YoY growth 2022-2023(%) |
4.09 |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
Anheuser Busch InBev SA NV, Asahi Group Holdings Ltd., Beijing Yanjing Beer Group Corp., Carlsberg Breweries AS, Constellation Brands Inc., Coopers Brewery Ltd., D.G. Yuengling and Son Inc., Diageo Plc, Heineken NV, Kirin Holdings Co. Ltd., Lion Pty. Ltd., Molson Coors Beverage Co., Sapporo USA Inc., Sierra Nevada Brewing Co., Squatters Pub Brewery, Stone and Wood Brewing Co., The Boston Beer Co. Inc., The Gambrinus Co., Tsingtao Brewery Co. Ltd., and Vam Distilleries and Beverages |
Market dynamics |
Parent market analysis, Market forecasting growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, Market condition analysis for the forecast period |
Customization purview |
If our market report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Distribution Channel
7 Market Segmentation by Packaging
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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