Beer Market Size 2024-2028

The beer market size is expected to grow to USD 148.43 billion, at a compound annual growth rate (CAGR) of 3.72% between 2023 and 2028. The expansion of the market is fueled by a confluence of factors, contributing to its robust growth and dynamic nature. One significant driver is the rising demand for beer in emerging economies, where increasing disposable incomes and urbanization are boosting beer consumption. Additionally, there is a global preference for premium beers, as consumers are willing to spend more on high-quality, craft beer, and specialty brews. The rise of the online retail landscape for beer is also accelerating market growth, making it easier for consumers to access a wide variety of beer products. Furthermore, the introduction of innovative flavors is attracting new consumers and retaining existing ones, adding to the market's vibrancy. A notable trend within the industry is the growing popularity of low-alcohol beers, reflecting evolving consumer preferences towards healthier lifestyle choices. However, the market faces challenges such as stringent regulations and hefty taxes on alcoholic beverages, which can impact pricing and availability. Rising competition from non-alcoholic beverages also poses a threat, as consumers increasingly explore these options. Despite these obstacles, the market remains dynamic, driven by constant innovation and changing consumer behaviors.

What will be the Beer Market Size during the Forecast period?

The market shows an accelerated CAGR during the forecast period.

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Beer Market Segmentation

The beer market research and growth report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in USD Billion for the period 2024 to 2028, as well as historical data from 2018 to 2022 for the following segments. 

• Deployment Outlook
  • Bottles
  • Cans

• Application Outlook
  • On-trade
  • Off-trade

• Region Outlook
  • North America
    • The U.S.
    • Canada
  • Europe
    • The U.K.
    • Germany
    • France
    • Rest of Europe
  • APAC
    • China
    • India
  • South America
    • Chile
    • Brazil
    • Argentina
  • Middle East & Africa
    • Saudi Arabia
    • South Africa
    • Rest of the Middle East & Africa

In the packaging segment of the market, various materials and methods are employed to preserve the quality and taste of the alcoholic beverage. Packaging materials such as glass, aluminum cans, and PET bottles ensure the safe transport and storage of beer. Water, a crucial ingredient in brewing, is carefully sourced and treated to meet quality standards. Malted barley and grains provide the base for beer production, contributing to its flavor and color. Hops add bitterness, aroma, and flavor to beer, enhancing its taste profile. Yeast, a key ingredient, ferments sugars into alcohol and carbon dioxide, resulting in the production of alcoholic beverages. Different beer types, like ales, lagers, and stouts, are packaged according to their specific characteristics and consumer preferences. Non-alcoholic beer is packaged similarly to alcoholic beer but undergoes a different brewing process to remove alcohol. Craft breweries often use small-batch production methods, allowing for more flexibility and experimentation in packaging options. Retail stores and direct-to-consumer channels offer various beverage options to cater to different consumer preferences. Overall, packaging plays a vital role in maintaining the quality, freshness, and appeal of beer products in the market.

By Packaging

The market share by the bottles segment will be significant during the forecast period.  It has been traditionally packaged in glass bottles, mainly brown-colored bottles. This is supported by the fact that the 600-ml beer bottle is one of the most popular glass options, and it can be shared among 2-3 people. Consumers nowadays also prefer lightweight metal cans, which can be adapted to the social situation. Other packaging materials, such as wooden containers and polyethene terephthalate (PET) bottles, are also available.

The bottles segment was valued at USD 410.74 billion in 2018.

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Furthermore, many traditional authentic breweries prefer bottled products to be a part of the traditional art of brewing. Internationally distinguished brands have launched new fibre beer bottles and containers in June 2022. Moreover, they are biodegradable and serve as a sustainable option for packaging. Instead of a plastic seal, the company uses an impermeable coating. The wood fibre for bottles comes from sustainably managed wood fibres. Such developments are expected to drive the growth of the bottle segment, which in turn is anticipated to drive the growth of the beer market during the forecast period.

By Distribution Channel

On-trade distribution, also called on-premise distribution, includes establishments in which customers can purchase and consume. The various types of on-trade distribution channels include restaurants, cafes and bars, pubs, and hotels. The on-trade segment is estimated to grow significantly during the forecast period, owing to the rising consumption of these at bars and pubs by consumers in the APAC and MEA region, which includes countries such as India, China, Japan, and the UAE.  The expansion of bars, pubs, and restaurants is increasing the sales of these through on-trade distribution channels. The popularity of craft among millennials is also increasing sales through on-trade distribution channels.

Key Region

APAC is estimated to contribute 41% to the growth of the global market during the forecast period

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Technavio's analysts have provided extensive insight into the market forecasting, detailing the regional trends and drivers influencing the market's trajectory throughout the forecast period. The APAC beer market is fragmented, owing to the presence of various regional and global players. To increase the sales and reach of these among customers, various companies operating in the region are trying to expand their presence by focusing on M&A activities and new product launches. Furthermore, the rising number of organized retailing outlets that sell these across different platforms like hypermarkets, supermarkets, departmental stores, and various e-commerce portals in the region has increased the availability and accessibility of these among different consumer segments. These factors will drive the market in APAC during the forecast period. Another region where we can expect steady growth is the US beer market and Indian beer market, both tapping into customer preferences. 

Beer Market Dynamics

The market continues to evolve, driven by a diverse range of factors. Traditional ingredients like malted barley, grains, hops, and yeast create the foundation for a wide array of beer styles, including dark beer, stouts, lagers, and ales. Craft breweries are thriving, offering unique flavors and small-batch production, catering to consumer demand for variety and quality. Alongside alcoholic options, there's a rising trend in non-alcoholic beer, reflecting health and wellness concerns. Gen Z's preferences for unique beverages are reshaping the market, prompting breweries to explore innovative flavors and packaging. Retail stores and direct-to-consumer channels are key in reaching customers globally, driving further growth in the market.

Key Beer Market Driver 

Rising demand for beer in emerging economies is the key factor driving the market. The demand for beer is experiencing a notable upsurge in emerging economies like India, China, Brazil, Vietnam, and South Africa. This surge in the market can be attributed to several factors, including changing lifestyles, rapid urbanization, increasing disposable income, and the growing popularity among millennials. These factors are driving a trend toward modernization and an increase in alcohol socialization, particularly with the popularity of bold-flavored drinks. To cater to this trend, global companies are actively working on improving their distribution channels and promoting online sales in emerging economies.

Lager or ale, has an alcohol content of 7% and a well-balanced aroma. It is brewed using malted cereal grains, hops, and yeast, and contains protein, sodium, and potassium. This introduction aligns with the increasing popularity of craft beer among the young-adult population demographics and the growing number of breweries worldwide. These product launches are contributing to beer market growth and are expected to continue driving growth throughout the forecast period.

Significant Beer Market Trends 

The introduction of new beer flavors is an emerging trend in the market. The growing popularity of flavored beer is attributable to the increasing volume of consumers in the global market. The introduction of new flavors in the beer segment brought by craft beers increased the demand in the global market. Flavors set a beer apart and act as a point of differentiation for consumers.

Furthermore, the millennials are a targeted segment of the breweries. They are experimental and like to try out newer experiences. Millennials' preference towards flavored beverages has seen breweries adopting and incorporating newer flavors in their offerings. For instance, Diageo launched Guinness Nitro Cold Brew Coffee in April 2021 in the US to increase its customer base. Therefore, the increasing demand for newer flavors from consumers is expected to drive beer market growth during the forecast period.

Major Beer Market Challenge 

The concerns about health regarding beer are major challenges impeding beer market growth. The prolonged consumption of alcoholic beverages can cause various health-related issues. Excessive consumption can affect the physical and mental well-being of people. It can cause blackouts, loss of coordination, seizures, drowsiness, hypothermia, low blood sugar levels, vomiting, diarrhea, bleeding, and irregular heartbeat. The long-term consumption of these can also cause mental issues, heart problems, and liver failure.

Additionally, awareness about health and the inclination of people toward healthy lifestyles have encouraged the consumption of healthy drinks and beverages. The growing preference for non-alcoholic beverages, including health drinks, is affecting the growth of the global market. Globally, the consumption of alcohol has witnessed a steady decline owing to changing consumer preferences in favor of healthier, non-alcoholic beverage. Therefore, the propensity of consumers for non-alcoholic beverages, including ginger beer, owing to concerns about health, is a major challenge for the growth of the global market during the forecast period.

Major Beer Market Companies

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 forecasting growth and analysis.

• Key Offering- Anheuser Busch InBev SA NV: The company offers beer under the brand name Budweiser, such as Budweiser Beer, Budweiser Zero, Budweiser Chelada, Budweiser Select, and others.
• Key Offering- BrewDog Plc: The company offers beer such as Black Heart, Lost Lager, Post Punk 4 Pack, Gluten-Free Punk IPA, and others.

The beer market growth and forecasting report also includes detailed analyses of the competitive landscape of the market and information about 20 market companies, including AleSmith Brewing Co., Asahi Group Holdings Ltd., Cloudwater Brew Co., Constellation Brands Inc., Diageo Plc, East 9th Brewing Co., Forbidden Root Restaurant and Brewery, Heineken NV, Keurig Dr Pepper Inc., Kirin Holdings Co. Ltd., Mikkeller APS, Molson Coors Beverage Co., Sprecher, Stone Brewing Co. LLC, Swinkels Family Brewers, The Boston Beer Co. Inc., and Wild Beer Co.

The beer market analysis report provides a comprehensive understanding of the business environment and competitors. It categorizes companies based on their focus and market position. Qualitative analysis classifies companies as pure play, category-focused, industry-focused, and diversified, while quantitative analysis categorizes them as dominant, leading, strong, tentative, or weak. This information helps clients make informed decisions about their target markets and competitors.

Market Analyst Overview

In the dynamic beer market, malted barley reigns supreme as the foundation for diverse styles, from lagers boasting a spectrum of flavors (bitter, sweet, sour, fruity) to cater to every socializing, relaxation, and celebratory need. From massive macro-breweries to micro-breweries, producers connect with a global audience through personalized recommendations and targeted marketing, harnessing the power of online retail and the allure of craft beer movements. Environmental responsibility fuels recycling initiatives, while health-conscious consumers propel the demand for non-alcoholic and low-alcohol options.

Carbonation adds an essential layer to the drinking experience, while consumers remain mindful of calorie counts, ingredients, and unique flavor profiles. Brewing techniques vary significantly across independent and large-scale breweries, offering artisanal experiences and catering to diverse preferences, including alcohol-free and unflavored options. Retailers stock a vast array of products, from non-alcoholic beers to craft brews, satisfying the beverage desires of both tourists and locals, influenced by cultural norms and demographics. Industry insights are gleaned from national statistical offices and international institutions, guiding informed decision-making.

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What are the Key Data Covered in this Beer Market Research Report?

• CAGR of the market worth during the forecast period
• Detailed information on factors that will drive the growth of the market between 2024 and 2028
• Precise estimation of the market size and its contribution to the market in focus on the parent market
• Accurate predictions about upcoming trends and changes in consumer behavior
• Market growth analysis across APAC, Europe, North America, South America, and Middle East and Africa
• A thorough market size analysis of the market's competitive landscape and detailed information about companies 
• Comprehensive analysis of factors that will challenge the growth of market companies

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