Beer Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

Beer Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

The beer market is projected to register a CAGR of 5.2% during the forecast period, 2021-2026.

The impact of the COVID-19 pandemic on the beer market can be witnessed with a spike in prices for products that are either domestically manufactured or are being imported. The rise in prices is associated with a disrupted supply chain, which has increased both the raw material costs and end product transportation due to the limited availability of raw materials due to production halts and labor shortages across developing countries. However, the market has grown in recent months as consumers have largely preferred in-home consumption amid the closure of bars, pubs, and restaurants. Similarly, the sales of cans and pint beer have witnessed an overwhelming demand considering factors such as convenience.

Over the medium term, the changing lifestyles, increasing consumption rate of alcoholic drinks, rapid urbanization, high disposable incomes, and popularity of beer among the young population are a few factors driving the global beer market. The introduction of new ingredients and innovative flavors, combining salty, fruity, and tart flavors, in craft beers has increased their appeal among the millennial crowd globally. Due to the increasing popularity of craft beer, the beer market has seen a heightened preference for flavored beers by consumers, especially millennials.

Key Market TrendsGrowing Preference For Low Alcohol by Volume (ABV)

There has been a consistent growth in preference for low alcohol by volume beverages, and the sales of no-alcohol and low-alcohol beers have been rising with the growing interest from health-conscious consumers and a wider choice of new ranges with improved taste. Another driving factor is that the low-alcohol beers are now cheaper than their high alcoholic equivalents, for those of 2.8% ABV and less. The cost reduction may drive the market for low-alcohol alcohols such as craft beer. The scenario is much prominent in European countries like Sweden, where brewers are seeking to bring changes to the craft beer market.

North America is Leading the Beer Market

The rapid expansion of breweries in the United States has contributed to the growth of the beer market across the region. According to the Brewers Association, in the United States, there were around 7,450 breweries in 2018, and the number of breweries witnessed a growth rate of 12.9% during 2014-2018. Most breweries in the United States have introduced their own and unique beers. This has given customers an increased opportunity to try new beer flavors. Flavors set a beer apart from one another and act as a point of differentiation for the consumers. Millennials, one of the largest demographics in the US population, are a targeted segment for breweries. The increasing preference of millennials for flavored beers has resulted in breweries adopting and incorporating newer flavors in their beer offerings. For instance, Constellation Brands introduced passionfruit lime, guava lime, and coconut lime under the brand Corona Refresca, especially to target millennials in the United States.

Competitive Landscape

The beer market is growing rapidly as the breweries outperform the broader, stagnant category with their more flavorful offerings and rapid expansions, thereby offering a wide range of products. The prominent players operating in the global market are Anheuser-Busch InBev, Molson Coors, Heineken, Boston Beer Company, Constellation Brands, SABMiller, and Carlsberg Group, which account for a considerable market share globally. Over the past few years, expanding presence in the emerging economies has been one of their key strategies responsible for growth.

Additional Benefits:

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support

Companies Mentioned

IBM Corporation
Oracle Corporation
Internap Corporation
Packet Inc. (An Equinix Inc. Company)
Scaleway Inc.
Amazon Web Services Inc
Rackspace Inc.
CenturyLink, Inc.
LightEdge Solutions, Inc

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