The global beer market is primarily driven by the growing culture of social drinking and youth population across countries. Beer is one of the most popular alcoholic beverages consumed globally owing to its advantages such as refreshing taste and affordable prices. Beer contains fermented flavonoids from hops and various health benefits due to the presence of antioxidants and vitamins. The increasing number of breweries focusing on innovations in flavors and varieties is further driving the sales of beer. The rising number of bars, pubs, and nightclubs along with recreational activities are fueling the demand for beer worldwide.
The Global Beer Market Size is estimated to be valued at US$ 946.21 Mn in 2024 and is expected to exhibit a CAGR of 5.9% over the forecast period between 2024 to 2031.
Key Takeaways
Key players operating in the beer market are B. Braun Melsungen AG, Baxter, BD, Johnson & Johnson Private Limited, Stryker Corp., Integra LifeSciences Corporation, Medtronic plc, Acera Surgical, Inc., Anthrex, Inc., Acelity L.P. Inc., Biorez, Aroa Biosurgery Limited, Misonix, Inc., Ortho Regenerative Technologies Inc., AlloSource, Boston Scientific Corporation, TEIJIN LIMITED, and Smith+Nephew, CONMED Corporation. They are focusing on expanding their product portfolios as well as regional presence to cater to the growing demand for beer across countries.
The rising trend of social drinking in developed regions such as Europe and North America has resulted in high consumption of beer over the past few years. Moreover, the increasing adoption of western drinking culture in developing Asian countries is fueling the demand for beer.
Advancements in fermentation and brewing technologies by key players have led to innovations in flavors, varieties, and packaging of beers. Introduction of new product categories such as alcohol-free, low-carb, and craft beer is further driving the market growth.
Market trends
The rising popularity of craft and local beers among milennials is one of the key trends witnessed in the global market. Growing awareness about locally produced beers and varieties is driving the demand for craft beers. Moreover, changing consumer preferences towards premiumization is encouraging companies to offer wide varieties of craft beers.
Launch of flavors inspired by cuisines is another major trend. Introduction of beers infused with flavors of popular dishes enables consumers to enjoy drinking experience with tastes of cuisines from different cultures.
Market Opportunities
Increasing adoption of online shopping is opening growth opportunities for beer market players. Availability of wide assortments of domestic as well as imported beers on e-retail platforms is attracting consumers worldwide. Moreover, online platforms enable consumers to choose from various flavors and varieties of beers from the comfort of their homes.
Growing popularity of low- and no-alcohol beers due to health consciousness presents lucrative opportunities. Introduction of refreshing tasting low-calorie and session beer varieties catering to health-conscious consumers is elevating the market growthprospects.
Impact of COVID-19 on the Beer Market
The COVID-19 pandemic has significantly impacted the beer market globally. Lockdowns and restrictions imposed to curb the spread of the virus led to nationwide closures of pubs, bars and restaurants. This resulted in a major decline in on-trade sales volume which accounts for around 40-50% of the total beer market. The off-trade retail channel saw a moderate increase in sales but was not enough to offset the losses from the on-trade channel. Several breweries were forced to halt operations temporarily due to declining demand and supply chain disruptions. Post COVID, the market is expected to rebound steadily as restrictions ease with increasing vaccination rates. However, full recovery may take 1-2 years as consumer behavior and spending patterns undergo a shift in the short to medium term. Moving forward, manufacturers will need to focus on innovative product launches, strengthening the off-trade channel and expanding into new markets to boost growth. E-commerce platforms will play a bigger role in distribution.
North America accounts for the largest market share in terms of value for beer globally. This can be attributed to the increasing number of microbreweries and craft breweries in countries like the US and Canada. Consumers in the region have developed a preference for locally produced, premium and specialty beers. The growing demand for craft/premium beers continues to drive market growth here.
Asia Pacific is projected to be the fastest growing regional market for beer during the forecast period. This can be accredited to rising incomes, changing lifestyles and expanding youth population in major economies like China and India. These demographics usually have higher spending power and adopt Western drinking habits which benefits the beer market. Furthermore, improvement in distribution networks across Asia is helping boost beer consumption.
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