Global Craft Beer Market: Trends, Opportunities, and Challenges for 2024-2032

Market Outlook

The global craft beer market is expected to witness a robust growth in the next eight years, driven by the increasing consumer preference for premium and artisanal beers, the rising number of microbreweries and brewpubs, the innovation and experimentation in beer flavors and styles, and the growing awareness of the health benefits of craft beer. According to a report by EMR, the global craft beer market size reached approximately USD 109.22 billion in 2023, and is projected to grow at a compound annual growth rate (CAGR) of 8.9% between 2024 and 2032, reaching a value of USD 234.79 billion by 2032.

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Report Overview

The report by EMR provides a comprehensive analysis of the global craft beer market, covering various aspects such as market definition, scope, methodology, segmentation, drivers, restraints, opportunities, challenges, regional analysis, competitive landscape, and forecast. The report also provides insights into the key trends, industry news, recent developments, and application areas of the craft beer market. The report segments the market by component, end-user, and region, and provides detailed profiles of the leading players in the market.

Market Size and Dynamics

The global craft beer market size was estimated at USD 109.22 billion in 2023, and is expected to reach USD 234.79 billion by 2032, registering a CAGR of 8.9% during the forecast period. The market growth is attributed to the rising demand for craft beer among the millennials and the Gen Z consumers, who are looking for more variety, quality, and authenticity in their beer choices. The craft beer market is also supported by the increasing availability and accessibility of craft beer products, as more microbreweries and brewpubs are opening across the world, offering a wide range of beer styles and flavors to cater to the diverse tastes and preferences of the consumers. Moreover, the craft beer market is benefiting from the innovation and experimentation in the beer industry, as brewers are using various ingredients, techniques, and technologies to create new and unique beer products, such as sour beers, gluten-free beers, fruit beers, barrel-aged beers, and low-alcohol beers. Furthermore, the craft beer market is influenced by the growing awareness of the health benefits of craft beer, as compared to the mass-produced beers, as craft beer contains more antioxidants, vitamins, minerals, and probiotics, and has lower calories, carbohydrates, and alcohol content.

Segmentation

The global craft beer market is segmented by component, end-user, and region. By component, the market is divided into malt, hops, yeast, and others. The malt segment accounted for the largest market share in 2023, as malt is the main ingredient of craft beer, and provides the color, flavor, and body of the beer. The hops segment is expected to witness the fastest growth during the forecast period, as hops are used to add bitterness, aroma, and stability to the beer, and are also known to have anti-inflammatory, anti-microbial, and anti-cancer properties. The yeast segment is also expected to grow significantly, as yeast is responsible for the fermentation and carbonation of the beer, and also contributes to the flavor and aroma of the beer. The others segment includes water, adjuncts, and additives, which are used to enhance the quality and taste of the beer.

By end-user, the market is categorized into residential and commercial. The residential segment dominated the market in 2023, as more consumers are preferring to drink craft beer at home, especially during the COVID-19 pandemic, which has affected the operations and sales of the on-premise outlets. The commercial segment is projected to grow at a higher CAGR during the forecast period, as more consumers are expected to visit the microbreweries and brewpubs, as well as the bars, restaurants, hotels, and supermarkets, where craft beer is available, as the pandemic situation improves and the social distancing measures are eased.

By region, the market is segmented into North America, Europe, Asia Pacific, Latin America, and Middle East and Africa. North America held the largest market share in 2023, owing to the high consumption and production of craft beer in the region, especially in the US, which is the largest craft beer market in the world. Europe followed North America in terms of market share, as the region has a strong tradition and culture of beer brewing and drinking, and has a large number of craft breweries and beer festivals. Asia Pacific is expected to be the fastest-growing region during the forecast period, as the region is witnessing a rapid urbanization, rising disposable income, changing lifestyle, and increasing exposure to the western culture, which are driving the demand for craft beer in the region. Latin America and Middle East and Africa are also expected to show a moderate growth in the craft beer market, as the consumers in these regions are becoming more aware and curious about the craft beer products, and are willing to try new and different beer styles and flavors.

Recent Development

The global craft beer market is characterized by the presence of various players, who are constantly engaged in product innovation, expansion, merger and acquisition, partnership, and collaboration, to gain a competitive edge and increase their market share. Some of the recent developments in the market are:

In January 2021, Molson Coors Beverage Company, a leading global brewer, announced that it has acquired a 49% stake in Hop Valley Brewing Company, a craft brewery based in Oregon, US, which specializes in hop-forward beers. The acquisition is part of Molson Coors' strategy to expand its portfolio of craft and specialty beers, and to tap into the growing demand for craft beer in the US.

In December 2020, Anheuser-Busch InBev, the world's largest brewer, announced that it has acquired the remaining 68.8% stake in Craft Brew Alliance, a craft brewing company based in Portland, US, which owns brands such as Kona Brewing, Redhook Brewery, Widmer Brothers Brewing, and Omission Brewing. The acquisition is expected to strengthen Anheuser-Busch InBev's position in the craft beer segment, and to leverage the distribution and marketing capabilities of both companies.

In November 2020, Carlsberg Group, a leading global brewer, announced that it has launched a new craft beer brand called Birell, which is a non-alcoholic beer with natural ingredients and low calories. The brand is aimed at the health-conscious consumers, who are looking for a refreshing and flavorful alternative to the regular beers. The brand is initially available in Poland and Bulgaria, and is expected to be rolled out in other markets in the future.

Key Players

The global craft beer market is highly fragmented and competitive, with the presence of numerous local and regional players, as well as some global players, who are competing on the basis of product quality, variety, price, distribution, and marketing. Some of the key players in the market are:

The Boston Beer Company, Inc.

Sierra Nevada Brewing Co.

Duvel Moortgat NV

CANarchy.

D.G. Yuengling & Son, Inc.

Left Hand Brewing Co.,

Others

Market Trends

The global craft beer market is influenced by various trends, which are shaping the consumer behavior and preferences, as well as the industry dynamics and innovations. Some of the major trends in the market are:

The rise of the low-alcohol and alcohol-free craft beers, which are appealing to the consumers who are looking for a healthier and more responsible drinking option, without compromising on the taste and quality of the beer. These beers are also suitable for the consumers who are driving, pregnant, or have medical conditions that prevent them from consuming alcohol.

The popularity of the sour beers, which are beers that have a tart, acidic, and sour taste, due to the intentional introduction of bacteria, yeast, or wild fermentation. These beers are gaining traction among the consumers who are looking for a more adventurous and complex beer experience, and who are willing to experiment with different flavors and styles of beer.

The emergence of the online and mobile platforms, which are enabling the consumers to order, purchase, and deliver craft beer products, as well as to access information, reviews, ratings, and recommendations about the craft beer products and brands. These platforms are also helping the craft brewers to reach out to a wider and more diverse audience, and to showcase their products and stories.

Industry News

The global craft beer market is constantly evolving and witnessing new developments, which are affecting the market performance and outlook. Some of the recent industry news in the market are:

In February 2021, BrewDog, a leading craft brewery based in Scotland, announced that it has become the world's first carbon-negative beer company, as it has removed twice as much carbon from the air as it emits. The company has achieved this feat by investing in various environmental projects, such as planting trees, restoring peatlands, and building wind turbines.

In January 2021, Heineken, a global brewer, announced that it has launched a new global campaign called "Cheers to All", which celebrates the diversity and inclusivity of the beer drinkers, and challenges the stereotypes and prejudices associated with beer. The campaign features various scenarios, where people are offered the wrong drink, based on their gender, age, or appearance, and aims to convey the message that beer is for everyone, regardless of who they are.

In December 2020, The Brewers Association, a trade association that represents the small and independent craft brewers in the US, announced that it has awarded $150,000 in research grants to 15 projects, which are focused on enhancing the quality, sustainability, and diversity of the craft beer industry. The projects include topics such as hop breeding, barley malting, yeast fermentation, water conservation, waste management, and diversity and inclusion.

Application Insights

The global craft beer market has various applications, which are creating opportunities and challenges for the market players and stakeholders. Some of the major application areas of the market are:

The food and beverage industry, which is using craft beer as an ingredient, flavoring, or pairing for various food products, such as cheese, chocolate, bread, pizza, burgers, salads, and desserts. Craft beer is also used as a cooking medium, marinade, or sauce for various dishes, such as soups, stews, roasts, and casseroles.

The tourism and hospitality industry, which is promoting craft beer as a part of the local culture, heritage, and identity, and attracting tourists and travelers to visit the craft breweries and brewpubs, as well as the beer festivals and events, where they can experience and enjoy the craft beer products and brands.

The health and wellness industry, which is highlighting the health benefits of craft beer, such as its antioxidant, anti-inflammatory, anti-microbial, and anti-cancer properties, as well as its lower calories, carbohydrates, and alcohol content, and its higher vitamins, minerals, and probiotics. Craft beer is also being marketed as a natural and organic product, which is free from artificial additives and preservatives.

FAQs

Q: What is craft beer?

A: Craft beer is a type of beer that is produced by small, independent, and traditional brewers, who use high-quality ingredients, innovative techniques, and creative recipes, to create distinctive and flavorful beers, that reflect their passion, vision, and identity.

Q: How is craft beer different from regular beer?

A: Craft beer is different from regular beer in terms of the quality, variety, and authenticity of the beer. Craft beer uses natural and premium ingredients, such as malt, hops, yeast, and water, and avoids artificial additives and preservatives, which enhance the taste and quality of the beer. Craft beer also offers a wide range of beer styles and flavors, such as ale, lager, stout, porter, IPA, pale ale, wheat beer, amber ale, and more, which cater to the diverse preferences and occasions of the consumers. Craft beer also reflects the identity and personality of the brewers, who are passionate and dedicated to their craft, and who express their creativity and originality through their beer products and brands.

Q: What are the benefits of craft beer?

A: Craft beer has various benefits, such as:

It provides a satisfying and enjoyable drinking experience, as it has a rich and complex flavor, aroma, and appearance, which stimulate the senses and emotions of the consumers.

It supports the local and regional economy, culture, and community, as it creates jobs, generates revenue, promotes tourism, preserves heritage, and fosters social interaction and engagement.

It enhances the health and wellness of the consumers, as it contains antioxidants, vitamins, minerals, and probiotics, which have anti-inflammatory, anti-microbial, and anti-cancer properties, and also lower the risk of cardiovascular diseases, diabetes, and obesity.

Q: What are the challenges of craft beer?

A: Craft beer also faces some challenges, such as:

It faces a stiff competition from the large and established beer companies, who have more resources, distribution, and marketing power, and who can offer lower prices and discounts to the consumers.

It faces a regulatory and legal uncertainty, as the laws and regulations regarding the production, distribution, and taxation of craft beer vary from country to country, and sometimes from state to state, which can affect the profitability and sustainability of the craft brewers.

It faces a consumer and market volatility, as the demand and preferences of the consumers can change rapidly and unpredictably, due to the influence of the social media, trends, fads, and events, which can affect the sales and reputation of the craft beer products and brands.

Q: How to choose a craft beer?

A: Choosing a craft beer can be a personal and subjective decision, as it depends on the taste, preference, occasion, and mood of the consumer. However, some general tips and guidelines for choosing a craft beer are:

Know the basic beer styles and flavors, such as ale, lager, stout, porter, IPA, pale ale, wheat beer, amber ale, and more, and understand their characteristics, such as color, bitterness, sweetness, alcohol content, and carbonation.

Read the label and description of the craft beer, and look for the information, such as the name, logo, and story of the brewer, the ingredients, techniques, and processes used to make the beer, the style, flavor, and aroma of the beer, and the suggested food pairing and serving temperature of the beer.

Ask for recommendations and advice from the experts, such as the brewers, bartenders, servers, and fellow beer drinkers, who can provide more insights, tips, and suggestions about the craft beer products and brands.

Try and taste different craft beers, and experiment with various styles, flavors, and combinations, and discover what suits your palate, preference, and occasion.

Q: Where to buy craft beer?

A: Craft beer can be bought from various sources, such as:

The microbreweries and brewpubs, where the craft beer is brewed and served on-site, and where the consumers can interact with the brewers, and learn more about the craft beer products and brands.

The bars, restaurants, hotels, and supermarkets, where the craft beer is available on tap or in bottles or cans, and where the consumers can enjoy the craft beer with food and friends.

The online and mobile platforms, where the craft beer can be ordered, purchased, and delivered, and where the consumers can access information, reviews, ratings, and recommendations about the craft beer products and brands.