Craft Beer Market Size Is Projected To Be Around $505 Billion By 2025: Crystal Market Research
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A research study titled, “Craft Beer Market by Distribution - Global Industry Analysis and Forecast to 2025” published by Crystal Market Research, states that the craft beer market is projected to be around $505 billion by 2025.
Craft beer is a beer that is brewed by a small, independent, and traditional brewer. Craft beer is getting more popular in different parts of the world with local and international brewers expanding their network and offering exciting new flavors and tastes. The rising consumer preference for low alcohol by volume (ABV) beer is the main reason for the significant growth of the global craft beer market. As consumers are positively responding and appreciating new styles of flavors of craft beer, the industry will grow rapidly with more players entering the market rapidly.With the use of premium quality raw materials and advanced brewing techniques, brewers have been successful in attracting consumers towards craft beer from mainstream beer.
The on-trade distribution market held a major share of the global market in 2016,due to high consumption of beer inrestaurants, clubs, pubs, and bars. The quantity of beer sold through on-trade distribution is large as compared to off-trade distribution. Also, the beer sold through on-trade channels is costlier as compared to the beer sold through off-trade channels, which is the primary reason for the market dominance. Off-trade distribution is carried out through online channels, retailers, and distributors.The growing penetration of craft beer in developing countries such as India, China, Mexico, and Brazil will contribute to the growth of the off-trade market as the low prices will result into increased sales.
Europe held the largest share of the global craft beer market in 2016. High consumption of craft beer and changing taste of consumersare the key factors driving the market growth in this region.North America will witness favorable growth during the forecast period, with U.S accounting for the largest share of the regional market.
The major players emphasize on expanding to new regional markets and growing their existing product portfolios by introducing new brands and flavors through strategic collaborations. For instance, in May 2017, Heineken purchased a 50% stake in Lagunitas Brewing Company to accelerate their growth in craft beer market internationally.
Some of the key players in craft beer market are The Boston Beer Company, D.G. Yuengling and Son, Bell's Brewery, Inc., New Belgium Brewing Company, Chimay Beers and Cheeses, The Gambrinus Company, The Lagunitas Brewing Company, Stone & Wood Brewing Co., Sierra Nevada Brewing Co., and Feral Brewing Co.
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Key Findings of the Research Study:
- On-trade distribution of craft beer segment held more than half of the overall volume share in 2016 primarily due to high consumption of craft beer in restaurants, bars, pubs, and clubs in developed countries.
- Off-trade distribution is expected to show significant growth in developed countries as the spending power of consumers in these countries is low and hence a favorable market will be witnessed for off-trade distribution.
- Europe accounted for the largest share of the overall craft beer market in 2016, due to the changing preference of consumers for craft beer over high alcoholic spirits.
- In North American craft beer market, Mexico is poised to grow at lucrative CAGR during the forecast period.