Craft beer market to see significant growth in next decade
Fact.MR’s recent study on the craft beer market shows that the market is expected to grow at a CAGR of 7% in the forecast period 2019-2029.
The global market for craft beer is valued at US$ 76.3 bn in 2019. In the total beer market, craft beer accounts for more than 15%, and younger drinkers are fueling this growth.
Asia to see the most growth
North America has dominated the crafts beer market with more than 36% market share, though East Asia is expected to overtake North America as the world’s prime beer market during the forecast period. Asia is witnessing a proliferation of breweries. Jing A, Great Leap, Master Gao, Taps, and Slow Boat are the top craft breweries in China.
In India, craft beer consumption is growing at a rate of 20% annually, fuelled by rising Western culture penetration such as pubs and bars. Easy availability of raw materials such as wild flavours and speciality ingredients for craft beer are some of the growing opportunities in the developing market. The overall popularity and consumption of craft beer in the developing regions has surprisingly increased over the past few years and is expected to grow rapidly in the forecast period.
Over the past few years the overall landscape of craft beer has changed considerably, with small local breweries reigning supreme in many ways. Less than 15% of the market is owned by large multinational companies and according to the Brewers Association, less than 25% of the craft brewery is owned or controlled by a beverage/alcohol industry member. As consumers become more educated about craft beer, they increasingly prefer those which are made, sold and consumed on the same premises.
Packaging offers lucrative benefits
Packaging plays a very important role in the beverage industry. Brewers Association (BA) chief economist Bart Watson said recently the upsurge in the use of canned packaging by craft brewers is now coming at the expense of bottles. The volume sales of bottled craft beer have slowed down in the year 2016 and is accelerated again in 2018. The increased use of 18 and 19 oz. cans among consumers also enhances the demand for canned craft beer.
Feel of the packaging has become extremely important. Raised text, catchy graphics, stickers, and tactile finishes on products can increase overall volume sales. Some brewers prefer to use full body shrink sleeves over canned packaging to achieve the best possible print quality.
The study also found increasing consumer demand for premium and flavoured craft beer is fueling the growth of the craft beer market through 2029.
Craft brewers are already introducing craft beer in various flavours, and are focused on using advanced technology for malt ingredient production. Fruit additive based and unfermented craft beer have significant demand.