Craft Beer Market Size was valued at USD 102.15 billion in 2023. The craft beer industry is projected to grow from USD 108.8 Billion in 2024 to USD 275.76 billion by 2032, exhibiting a compound annual growth rate (CAGR) of 12.33% during the forecast period (2024 - 2032). Individual craft breweries developing new products and flavours, as well as the emergence of subtle flavours such as floral ones are the key market drivers enhancing the market growth.
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
Craft beer is gaining a strong foothold in the market, with an increasing number of independent microbreweries popping up to offer a variety of products. The growing popularity of craft beer among consumers, particularly the younger generation, is regarded as the most important growth factor. Demand for variety, higher disposable income, a taste for flavour, and beer quality are all factors influencing the shift towards craft beer consumption. Low-alcohol-by-volume beverages are becoming popular. Because of increased interest from health-conscious customers and a better selection of new varieties with superior taste, sales of no-alcohol and low-alcohol beers have also increased. The expansion of the craft beer industry revenue is inextricably linked to the expansion of consumer desire for variety.
Furthermore, changing consumer preferences for variety and flavour have resulted in the inclusion of microbreweries in the craft beer industry. In general, macrobrewers' active participation promotes the craft beer market. These new brewers have been driving the exports that have led to the craft beer industry's initial stabilisation and incremental growth. With an increasing number of microbreweries entering the market, the market has seen intense competition among these brewers in terms of product innovation and differentiation through flavours, packaging, price, and manufacturing techniques. As a result, the growing number of microbreweries and small independent breweries has been a critical factor driving market for craft beer CAGR.
Craft production accounted for 25.2% of the total product retail market in the United States in 2022, contributing to overall market growth.
Recent News :
Explore industry-specific publications like Brewer's Publications or Craft Beer News for updates and articles highlighting specific companies within the craft beer sector. Additionally, browse financial news websites for insights into publicly traded craft breweries, focusing on news about mergers, acquisitions, or strategic partnerships.
Segment Insights
The craft beer market segmentation, based on type, includes Ale and Lager and stouts. The craft lager segment is experiencing significant market growth as a result of brewers experimenting with and adding new styles such as light lager and pales to their product portfolios in order to divert consumers' attention away from mainstream brands. Craft lagers are becoming increasingly popular among consumers due to their light and malty flavour. Brewers are shifting towards products with longer shelf lives and less expensive ingredients, which has increased the production of craft lager. Lagers made up 1764 entries in nearly 18 different styles in the Great American Beer Festival (GABF) 2019, according to the Brewers Association, accounting for 15.8% of this alcoholic beverages.
Figure 1: Craft Beer Market, by Type, 2022 & 2032 (USD billion)
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
Second, the craft beer market is divided into malt, yeast, enzymes, and hops based on the ingredients used in the beer. These enlist the various ingredients to convert the raw materials into beer. The final flavour of the craft beer is determined by the ingredients used in the process.
The craft beer market segmentation has been bifurcated by distribution channel into store based and non-store based. Craft beer sales through non store based channels have increased in recent years as a result of their availability in various flavours and types. Consumers prefer to buy from off-trade channels such as supermarkets and convenience stores because they offer pre-chilled, convenient bottles or cans. According to Martson's Beer Company's non-store based beer report 2022, approximately 35% of lager and 16% of ale consumers prefer to purchase this alcoholic beverage from such non store based sources.
By Region, the study provides the market insights into North America, Europe, Asia-Pacific and Rest of the World. The craft beer market in North American is largely served by this region. Craft beer's appeal in the North American market has increased due to the growing number of microbreweries. Craft beer demand in the US has expanded dramatically as a result of the growth of brewers. The craft movement is significantly fueled by local events, promotions, and social media. Because of its complex flavour, craft beer is more appealing to millennials in the area than normal beer.
Further, the major countries studied in the market report are The U.S., Canada, Germany, France, UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.
Figure 3: CRAFT BEER MARKET SHARE BY REGION 2022 (%)
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
Europe craft beer market accounts for the second-largest market share. Due to the region's growing demand for low-alcohol craft beers and rising demand for craft beers among the young population. Further, the Germany market of craft beer held the largest market share, and the UK craft beer industry was the fastest growing market in the European region.
The Asia-Pacific Craft Beer Market is expected to grow at the fastest CAGR from 2022 to 2030. Craft beer has grown especially rapidly in India and China. The market has grown significantly in recent years, thanks to rising citizen incomes, rapid urbanisation, and the expansion of beer companies. Moreover, China craft beer industry held the largest market share, and the Indian market for craft beer was the fastest growing market in the Asia-Pacific region.
To expand their product ranges, major market participants are investing a lot of money in R&D, which will spur further growth in the craft beer market. In addition, market participants are launching new products, entering into contracts, acquiring companies, increasing investments, and working with other organisations, among other significant market developments, in an effort to expand their footprint. To grow and survive in a market that is becoming more competitive and growing, competitors in the craft beer business must provide products that are affordable.
Manufacturing locally to cut operational costs is one of the main business methods used by producers in the craft beer industry to benefit customers and expand the market sector. The craft beer sector has recently given medicine some of the most important advantages. Major players in the craft beer industry, including Boston Beer Company Inc., D.G. Yuengling & Sons, Inc., New Belgium Craft Brewery, Deschutes Brewery, North Brewing Company, and others, are attempting to increase market demand by funding R&D projects.
Anheuser-Busch InBev SA/NV, also known as AB InBev, is a Belgian multinational beverage and brewing corporation headquartered in Leuven, Belgium. AB InBev has a functional management office in New York City, as well as regional headquarters in So Paulo, London, St. Louis, Mexico City, Bremen, and Johannesburg. In 150 countries, it has approximately 630 beer brands.AB InBev was formed when InBev (a merger of Interbrew of Belgium and AmBev of Brazil) acquired Anheuser-Busch of the United States. In September 2022, Anheuser-Busch InBev SA, a well-known craft beer producer, introduced Lisa into the UK market. The Lisa beer was a high-end Italian beer with a honey flavour. Such new product launches in foreign markets increase market diversity.
Bira 91 is an Indian craft beer brand launched in 2015 by B9 Beverages Pvt. Ltd. The company's first brewery unit was located in the Belgian Flanders region, where a craft distillery was used to contract manufacture the beer using ingredients from France, Belgium, the Himalayas, and Bavarian farms, and the beer was imported to India. Following its initial success, the company began producing the beer in India using the same ingredients. The beer is made from wheat, barley, and hops and is available in draught, 330ml, 650ml bottles, and 500ml cans. In April 2022, B9 Beverages Pvt. Ltd., through its brand Bira91, announced plans to launch limited edition craft beers in various flavours in India, in response to consumers' growing demand for bold and exquisite flavours.
Craft Beer Industry Developments
In October 2022, Budweiser APAC launched a new brewery in Putian, China, as part of Anheuser-Busch InBev's aim to quicken economic growth in China and better match customer needs. The biggest craft brewery for Budweiser in Asia-Pacific is located in the Fujian province.
In April 2022, Sparkle & SMaSH, a Belgian Tripel brewed with a blend of single malt and hops, was introduced by Bell's Brewery Inc. to honour women in the craft beer industry.
In March 2022, the Modelo Company announced the introduction of new products. They included an expansion of their popular flavor-forward Cheladas and new test offerings, including a premium light lager called Modelo Oro. Modelo Oro, Modelo Cantarito-Style Cerveza, Modelo Chelada Naranja Picosa, Modelo Chelada Limón y Sal, and Modelo Ranch Water are a few of the new products.
| Report Attribute/Metric | Details |
| Market Size 2023 | USD 102.15 billion |
| Market Size 2024 | USD 108.8 billion |
| Market Size 2032 | USD 275.76 billion |
| Compound Annual Growth Rate (CAGR) | 12.33% (2024-2032) |
| Base Year | 2023 |
| Market Forecast Period | 2024-2032 |
| Historical Data | 2021 |
| Market Forecast Units | Value (USD Billion) |
| Report Coverage | Revenue Forecast, Market Competitive Landscape, Growth Factors, and Trends |
| Segments Covered | by Type, Ingredients, Distribution Channel and Region |
| Geographies Covered | North America, Europe, Asia Pacific, and Rest of the World |
| Countries Covered | The U.S, Canada, Germany, France, UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil |
| Key Companies Profiled | Boston Beer Company Inc., D.G. Yuengling & Sons, Inc., New Belgium Craft Brewery, Deschutes Brewery, North Brewing Company |
| Key Market Opportunities | Emerging social trends in the populace |
| Key Market Dynamics | Creation of fresh goods and flavours by independent craft breweries |
Craft Beer Market Highlights:
Frequently Asked Questions (FAQ) :
The craft beer market size was valued at USD 102.15 Billion in 2023.
The market is projected to grow at a CAGR of 12.33% during the forecast period, 2024-2032.
North America had the largest share in the market.
The key players in the market are Boston Beer Company Inc., D.G. Yuengling & Sons, Inc., New Belgium Craft Brewery, Deschutes Brewery, North Brewing Company.
The Lager craft beer category dominated the market in 2023.
The Non store based channel had the largest share in the market.
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Senior Research Analyst I have a bachelor's degree in mechanical engineering and an mba. i have more than two years of expertise in the retail, food, and beverage, chemical, and material industries, and hence have developed a sound cross-domain expertise. a firm believer in lifelong learning and sharing of knowledge. having a proclivity for hatching ideas and trying to absorb as much information as possible in a short amount of time. introducing corporates to the data and insight, which enables them to move from probability to possibility, has been my key areas of interest.
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