Beer Market Size, Growth Report, 2034

BEER MARKET OVERVIEW

The global Beer Market size was valued approximately USD 821.39 billion in 2024 and will touch USD 1,167.47 billion by 2033, growing at a compound annual growth rate (CAGR) of 4.03% from 2024 to 2033.

Beer ranks among the world's most ancient and ubiquitously consumed alcoholic libations. Fundamentally, it is brewed from four elemental constituents: water, malted barley (with wheat, corn, or rice sometimes substituting), hops, and yeast. Through the fermentation of these ingredients, the brewing process begets the characteristic flavors and alcoholic potency that define beer.

COVID-19 IMPACT

Economic downturns shift beer consumption to affordable options and value brands.

Economic slumps, like the 2008 crisis and COVID-19, cut discretionary spending. Consumers then pick cheaper beer brands or smaller packs for affordability. Premium beer sales slump, while budget and private-label beers grow. Recessions also hike production costs for key ingredients. In the long run, as the economy recovers, premium beer may rebound, but slumps often permanently shift preferences to cost-effective options. Breweries focus on value packaging, promotions, and new products for price-sensitive customers.

LATEST TREND

Rise of Craft Beer and Local Breweries

The craft beer insurgency persists in remolding the beer market landscape. Nowadays, consumers are progressively hunting for singular, regionally crafted beers. Craft breweries place their emphasis on ingenuity, excellence, and small-scale brewing operations. This emphasis has triggered a profusion of novel flavors, styles, and seasonal concoctions. There's a growing eagerness among consumers to dabble with diverse beer assortments and to champion local brewing artisans.

Growth of Non-Alcoholic and Low-Alcohol Beers

In the ascendancy of health-oriented consumer preferences, a striking shift towards non-alcoholic and low-alcohol beers has emerged. These brews present a flavor spectrum and drinking experience that summons the charm of conventional beer, sans the intoxicating effects of alcohol. This trend has been progressively gathering steam, especially among millennial and Gen Z consumers.

BEER MARKET SEGMENTATION

By Type

Based on Type, the global market can be categorized into Lager, Ale, Stouts, Others.

Lager: Lager stands among the world's most sought-after and widely imbibed beer styles. Fermentation, driven by bottom-fermenting yeast, unfolds at relatively low temperatures, begetting a flavor profile that's crisp and clean, along with a lighter mouthfeel and a seamless finish. Revered for their revitalizing attributes, lagers encompass numerous subcategories, including Pale Lager, Pilsner, Bock, and Märzen.

Ale: Ale constitutes a beer category brewed with top-fermenting yeast under warmer conditions, giving rise to a more intricate flavor spectrum. Characteristically, ales exhibit fruity, spicy, or earthy flavor notes, possessing a more potent and full-bodied structure in contrast to lagers. Prominent ale varieties encompass Pale Ale, IPA (India Pale Ale), Belgian Ale, and Brown Ale.

Stouts: Stouts, a darker iteration of ale, have earned renown for their lavish, roasted flavor profiles, often imbued with undertones of coffee, chocolate, and caramel. In the brewing process, roasted barley or other dark malts play an indispensable role, gifting stouts their hallmark deep coloration and potent flavors. Prevalent subtypes within this category are Dry Stout (exemplified by Guinness), Oatmeal Stout, and Imperial Stout.

Others: The Others category encompasses a vast expanse of beer styles that evade the typical classifications of lager, ale, or stout. This assemblage incorporates specialty and experimental concoctions, such as Lambics (Belgian sour ales), Wheat beers, Pilsners (a subcategory within the lager lineage), alongside hybrid styles that blend elements drawn from various beer classifications.

By Application

Based on application, the global market can be categorized into On-trade, Off-trade.

On-trade: The on-trade sector pertains to beer consumption within the precincts of bars, restaurants, pubs, and across sundry events. Historically, this segment has long served as the cornerstone of breweries' revenue streams, chiefly on account of the more lucrative profit margins that on-premise sales entail. In these settings, beer is customarily paired with food, cultivating a genial social atmosphere. Undeniably, the COVID-19 pandemic dealt a temporary setback to on-trade beer consumption. Nonetheless, as public gatherings and dining-out scenarios gradually recommence, the market is inching towards recuperation. In the long run, spurred by the experiential essence of beer-drinking—particularly in regions where social mingling and communal imbibing are intricately interwoven into the cultural tapestry—this sector is set for sustained expansion.

Off-trade: The off-trade domain denotes the procurement of beer from retail establishments, encompassing supermarkets, liquor emporiums, and online marketplaces, for personal home consumption. This sector has witnessed remarkable expansion, particularly throughout the pandemic era, as consumers were lured by the convenience of at-home drinking. E-commerce platforms and home delivery services are the chief driving forces behind this trend, expanding access to a diverse portfolio of beer, whether it be craft concoctions or premium picks. In light of the ascending trends of digital engagement and home-based consumption, the off-trade segment is anticipated to maintain its dominant standing, offering consumers both convenience and a broader product spectrum.

MARKET DYNAMICS

Market dynamics include driving and restraining factors, opportunities and challenges stating the market conditions.

Driving Factors

Increasing Global Alcohol Consumption

The global demand for alcoholic drinks, especially beer, is rising. As consumers favor beer more, and disposable incomes grow, it's becoming a top choice in many regions. Emerging markets in Asia, Africa, and Latin America see higher beer consumption due to urbanization and young people's preference. Cultural changes in non-traditional markets also expand the overall market. Breweries are using these growing markets to boost sales.

Popularity of Craft Beer

The craft beer revolution has reshaped the global beer terrain, as consumers crave idiosyncratic, artisanal libations. In developed countries including the United States, the United Kingdom, and Germany, a conspicuous shift from mass-produced brews is taking place. Consumers, allured by the unique flavor profiles and premium ingredients, are now veering towards small-batch, locally-brewed beers. This transformation has flung wide a profusion of opportunities for microbreweries and craft beer establishments. They can now target niche demographics, fostering steadfast customer loyalty. With the craving for more individualized and inventive products intensifying, the craft beer sector persists in its expansion, fueling the broader market's diversification.

Restraining Factor

Economic Downturns and Reduced Consumer Spending

Economic slumps, like the 2008 crisis and COVID-19, cut discretionary spending, hurting the beer market. In uncertain times, consumers ditch premium beers for cheaper ones. High-end craft or imports may sell less, while budget brands boom. The spending drop also hits bars and restaurants, big beer sellers. Plus, breweries face higher costs from inflation in materials and logistics, squeezing margins.

Health and Wellness Trends Affecting Alcohol Consumption

The booming health and wellness trend has cut alcohol use, especially among young, health-aware consumers. Many opt for low-cal, non-alcoholic drinks, hitting beer sales. While demand for non-alc beers is up, it challenges traditional brewers. Rising health concerns, like liver damage, also make some cut back, forcing breweries to offer healthier options.

Opportunity

Rising Demand for Non-Alcoholic and Low-Alcohol Beers

The rise of health-conscious consumers offers breweries a prime chance to develop non-alcoholic and low-alcohol beers. As more people cut alcohol for health, non-alcoholic beer has become popular. It lets breweries reach new customers, those who like beer taste without the buzz. Low-calorie beers also meet growing demand for lighter drinks. Breweries that innovate in flavorful non-alcoholic brews will grab more market share as this category grows.

Challenge

Intense Competition from Other Alcoholic Beverages

The beer market is entrenched in cutthroat competition from other alcoholic libations, specifically wine, spirits, and ready-to-drink (RTD) cocktails. Throughout numerous regions, consumers' mutable preferences, allured by the elevated alcohol potency and augmented convenience presented by wine and spirits, are progressively luring them away from beer. The skyrocketing vogue of RTD mixtures, which has swept the youth demographic like wildfire, further intensifies the tribulations that long-established beer brands encounter. As a result, beer manufacturers are under compulsion to ceaselessly innovate, broaden the scope of their product portfolios, and realign their marketing strategies for the sake of attracting a diverse consumer base. Were they to falter in tracking the evolving trends or in setting their products apart from competing beverages, beer producers stand to cede market share to these alternatives.

BEER MARKET REGIONAL INSIGHTS

North America:

North America's beer market has reached a stage of maturity, with the United States and Canada emerging as preponderant forces. The consumption of mass-market beer has plateaued, whereas the craft beer sector is experiencing a brisk upsurge. There is a growing proclivity among consumers for premium, artisanal brews, coupled with health-oriented alternatives such as non-alcoholic or low-calorie beers. Concurrently, e-commerce is steadily gathering momentum. The market remains fiercely competitive, as both behemoth breweries and smaller craft outfits set their sights on millennials and Gen Z — demographics that place a high premium on sustainability and distinctive flavor profiles.

Europe:

Europe's beer market unfolds as a variegated tapestry of diversity, with nations such as Germany, Belgium, and the United Kingdom at the forefront of consumption. The time-honored lager and pilsner styles yet retain their far-reaching allure, while the craft beer revolution is hurtling forward at a breakneck tempo, especially across Western Europe. The impetus towards health-driven choices, encompassing non-alcoholic and low-calorie variants, is steadily forging ahead. Sustainability, moreover, has ascended to the status of a central preoccupation. Although overall consumption levels have steadied, younger cohorts are veering towards alternative alcoholic libations, thereby posing hurdles for long-established beer brands.

Asia:

Asia's beer market is in a phase of rapid expansion, spurred by the twin engines of ascending incomes and a youthful demographic. China firmly holds its position as the behemoth in this market, while nations such as India, Vietnam, and those across Southeast Asia are brimming with notable potential. Locally favored rice-based brews and lagers reign supreme, yet the craft beer landscape is steadily gathering steam. Beer does encounter competition from native spirits; however, as distribution channels are refined, especially in urban locales, both premium and budget-friendly beer offerings are broadening their reach.

KEY INDUSTRY PLAYERS

The beer market is competitive, with global and craft brands innovating.

The global beer market is highly cutthroat. Multinationals rule with wide product lines and strong distribution. But craft breweries, focusing on unique goods, have upped the competition, especially in North America and Europe. The demand for low-cal and non-alcoholic options drives more innovation. Sustainability is also key as breweries meet greener consumer expectations.

List of Top Beer Market Companies

Anheuser-Busch InBev
Heineken N.V.
China Resources Breweries
Carlsberg A/S
Diageo Plc
Molson Coors Beverage Company
Boston Beer Company
Asahi Group Holdings Ltd
Kirin Holdings Co. Ltd
Beijing Yanjing Beer Group Corporation

REPORT COVERAGE

The study encompasses a comprehensive SWOT analysis and provides insights into future developments within the market. It examines various factors that contribute to the growth of the market, exploring a wide range of market categories and potential applications that may impact its trajectory in the coming years. The analysis takes into account both current trends and historical turning points, providing a holistic understanding of the market's components and identifying potential areas for growth.

The global beer market is evolving. Premium, craft, and non-alcoholic segments grow steadily. Traditional beer use is steady in mature markets, but emerging Asian ones show great potential. Innovation, health trends, and sustainability drive change as breweries adapt. Future focus will be on premiumizing, diversifying products, and being eco-friendly.