Market Analysis and Insights
The beer processing market was estimated to be worth US$ 732.57 billion in 2022 and is anticipated to grow to US$ 970.52 billion by 2029 at a CAGR of 4.3%.
Due to the increase in demand for the beverage, craft beer processing has rapidly increased in recent years. Businesses have started producing large amounts of craft beer as a result of its growing popularity. The craft brewery makes a small volume of beer, focusing mostly on brewing quality, flavor, and technique. Young people are increasingly moving from mass-produced beers to artisanal beer. Since craft beer is becoming more and more well-liked throughout the world, the market for beer processing is booming.
Beer Processing Market Scope :
|Revenue forecast in 2029
|USD 970.52 billion
|CAGR of 4.3% during 2018-2028
|by Beer Type, by Price Category, by Distribution Channel, Regions
|North America, Europe, Asia Pacific, South America, Middle East and Africa
|Key Players Profiled
|Anheuser-Busch InBev, Asahi Group Holdings, Carlsberg Group, Heineken, Molson Coors Brewing Company, Alfa Laval, GEA Group, Tsingtao Brewery Co. Ltd, Krones Group, and Paul Mueller.
Beer manufacturing, from the initial components through the finished packaged product, is referred to as ""brewing"" or ""beer processing.""
Malting, mashing, boiling, fermentation, maturation, filtering, carbonation, and packaging are some of the processes it includes. Processing grains, typically barley, into a fermented liquid with distinct flavors, smells, and qualities is the goal of making beer. Numerous procedures are used, including the extraction of sugars from grains, the addition of hops for flavor and fragrance, the fermentation of carbohydrates into alcohol using yeast, and conditioning the beer for the best possible flavor and quality. To produce a consistent and satisfying beer product, beer processing involves meticulous attention to detail, quality control procedures, and adherence to certain recipes and brewing processes.
Beer Processing Market Scope:
Key Market Segmentation
Insights on Beer Type
The Larger Segment Valued for the Highest Share
Due to the high acceptance rate of lager beer among consumers compared to other varieties of beer, the lager-type beer is predicted to dominate the global beer market at the highest CAGR during the projected period. Additionally, the vast majority of businesses operating in the beer industry like producing lager since it provides excellent returns on investment.
Insights on Price Category
The Mainstream Segment is the Dominating One
In 2022, the market for beer processing was dominated by mainstream beer, which accounted for approximately 48% of the market. The increasing demand from developing nations and the rising popularity of beer among younger customers are projected to drive further growth in this market in the upcoming years. There are many explanations for why mainstream beer is so well-liked. First of all, it is reasonably priced, making it a more practical choice for those on a tight budget. Second, a wide range of consumers find popular beers to be appealing since they are frequently light and simple to consume. Third, it's easy to find mainstream beers in shops, restaurants, and bars. Budweiser, Miller, Coors, Heineken, and Corona are a few of the most well-known mainstream beer brands. All of these brands are renowned for their mild, energizing flavors and reasonable prices.
Insights on Distribution Channel
The On-Trade/ On-Premise Channels will remain at Top
Beer sold for immediate consumption on premises like pubs and cafes falls under the category of on trade/on-premise sales. Because breweries are located closer to the consumer, they can better identify consumption patterns, which enables them to charge greater costs for beer through this distribution route. The majority of all beer sales come via on-trade distribution channels in terms of value. One of the main causes propelling the expansion of the beer markets on trade segment is the increasing consumption of beer in bars, restaurants, coffee shops, clubs, and hotels in both developed and emerging nations. Another important aspect is the rise of microbreweries selling their own craft beers.
Insights on Region
The Asia Pacific Region Accounted for the Highest Share
Due to population growth, the Asia-Pacific area is among the regions that consume the most beer. The beer processing sector is expanding due to the quick changes and shifts in consumer lifestyles, particularly among young people. The substantial expansion of the beer processing business is largely due to quick investments and technological advances in the sector.
Key Company Profiles
Some key players in the global market are Anheuser-Busch InBev, Asahi Group Holdings, Carlsberg Group, Heineken, Molson Coors Brewing Company, Alfa Laval, GEA Group, Tsingtao Brewery Co. Ltd, Krones Group, and Paul Mueller.
COVID-19 Impact and Market Status
Global supply chains have been affected by lockdown measures and travel restrictions, which have an impact on the accessibility of raw materials, packaging supplies, and transportation for brewing enterprises.
In certain areas, this has caused manufacturing delays and shortages. On-premises beer consumption has significantly decreased as a result of pubs, restaurants, and events including concerts, sporting events, and festivals being canceled. This has impacted beer demand, resulting in lower beer processing company sales and revenue.
Many customers switched to off-premises use once pubs and restaurants closed, including buying alcohol from supermarkets and internet retailers. Due to this shift in consumer behavior, beer processing businesses have had to modify their distribution plans in order to keep up with the ened demand in these channels.
Craft breweries, which frequently rely on taprooms and direct sales to consumers, have encountered unique difficulties. Craft brewers have had to change their business models to concentrate on package delivery, sales, and e-commerce in response to limits on public gatherings and taproom closures.
1. Globally, the craft beer movement has grown significantly. Craft brewers concentrate on manufacturing distinctive beer in small quantities, frequently experimenting with novel ingredients and brewing methods.
2. The craft beer industry has grown as a result of this movement, which has piqued consumer interest. The demand for non-alcoholic and low-alcohol beers has increased as health and well-being have become more of a priority.
3. Beer processing firms have responded by creating tasty non-alcoholic and low-alcohol choices that resemble the taste and scent of regular beer using cutting-edge brewing techniques and formulas. To give consumers a variety of beer alternatives, beer processing businesses are investigating novel flavors and additives. This involves adding fruits, herbs, spices, coffee, chocolate, or other unusual flavors to a beer. It has also become more common to experiment with barrel aging and sour beer varieties.
4. Environmental sustainability has emerged as a top priority for brewing businesses. Numerous breweries are integrating sustainable practices including utilizing organic ingredients, enacting water conservation measures, cutting back on electricity use, and utilizing recycling and waste management techniques. To further lessen their carbon footprint, several breweries are emphasizing locally produced ingredients.
Significant Growth Factors
Due to reasons including population expansion, shifting consumer tastes, and rising disposable incomes, there is still a consistent demand for beer on a worldwide scale. For businesses that process beer, this need serves as an economic driver.
The market for beer processing has grown as a result of the rising popularity of craft beer. Craft breweries draw customers looking for diversity and high-quality goods with their distinctive flavors, styles, and experiences.
Companies that manufacture beer may gain a competitive edge by making research and development investments to produce novel beer products. Growth may be fueled by creating distinctive flavors, providing non-alcoholic and low-alcohol choices, and adapting to shifting customer tastes.
In emerging nations, where the demand for beer is rising due to changing lifestyles and increased disposable incomes, the beer processing business is expanding. Brewing firms may find new growth prospects by entering these areas.
The increasing demand for beer throughout the world is advantageous for beer processing businesses that may export their goods to other countries. They can increase income by reaching out to new nations and areas.
As the demand for craft beer increases globally, the global market for beer processing is expanding quickly. Along with him, rising consumer discretionary money is also helping to fuel market expansion. There are a number of market expansion prospects expected as a result of the rising trend for drinking low- or no-alcohol beer. increasing innovation in beer products to obtain a competitive edge and impacting the market expansion of beer processing.
Although there are a number of variables that might limit market growth over the projected period, some of them include environmental challenges and strict government regulations on beer production.
Companies that process beer must adhere to a number of rules including manufacture, labeling, packaging, and distribution. It can be difficult to comply with these restrictions, which may make it difficult to enter or expand in some areas.
Some customers are choosing to consume less alcohol or to switch to healthier beverage options as a result of the increased focus on health and well-being. The demand for beer, particularly in the conventional beer market, may be impacted by this change in consumer behavior.
Other alcoholic drinks including wine, spirits, and ready-to-drink cocktails compete with beer for consumers' attention. The market for beer processing may have growth limitations if consumer tastes and market trends move in favor of these substitutes.
Companies that make beer are susceptible to changes in the cost of raw materials, especially barley, hops, and other components. The profit margins and general profitability of the firm may be affected by these cost variations.
Beer processing businesses must change with the times in order to be competitive. Consumer tastes and preferences can shift quickly. Market share losses and growth hindrances might result from failing to satisfy changing customer needs.
Beer distribution and logistics infrastructure may be complicated and expensive to set up for different markets. For businesses that produce beer, it can be difficult to ensure efficient transportation, manage stocks, and cope with legal and licensing requirements.
Recent Developments in the Global Beer Processing Market: a Snapshot
• The debut of Budweiser 0.0, Anheuser-Busch InBev's first non-alcoholic beer, in India was announced in July 2019. The purpose of introducing this section is to guarantee that the corporation achieves its target of producing 20% non-alcoholic beer in its overall output.
• Vicky Chamoy, a beer featuring chamoy flavor components of sweetness, saltiness, spice, and sourness, was introduced by Victoria in October 2022 and was available in the United States. This imported Mexican beer has a flavor of Mexico and comes in a 24-ounce single-serve can.
• New beer Seven Rivers from Anheuser-Busch InBev was introduced to the Indian market in May 2022. This product is an exact substitute for Budweiser, Corona Extra, and Hoegaarden.