The beer market is constantly changing and growing thanks in part to creative craft beer marketing. Additionally, the major beer brands are investing heavily in ads and marketing too. That’s why it’s no wonder that beer businesses have one of the largest market shares compared to others in the beverage industry. In this article, we’ll take a closer look at the beer market, the current trends, and the future of this niche.
Beer Market Size
US Beer Market
America is among the biggest beer producers and markets in the world. The total number of breweries has been growing and is now close to 10,000, according to the Brewing Association. These include regional breweries, microbreweries, taprooms, and brewpubs. In retrospect, this number was around 500 just 30 years ago. According to other stats by the Brewing Association, the overall beer sales volume was more than 5.6 billion gallons. Out of those, around 13.2% were sales of different types of craft beers. The US is also a massive importer of beer. Import beers have a market share of 22.2% in the US.
Global Beer Market
According to Statista's website, the beer market is expected to be around $610 billion in 2023. Annually, the market is expected to grow by 5.44% for the next 5 years. Currently, China is the leading beer market. Its estimated size is $125 billion in 2023. Projections show that out-of-home consumption will account for 33% of the volume consumed or 52% of the spending for beer in 2027. This means that there is merit in the notion that venues should adapt to the craft beer revolution by having a rich and interesting beer menu. Currently, the average volume of beer consumed per person is around 23 liters or 6 gallons.
Key takeaway: The beer market is growing, especially in countries in Southeast Asia and Latin America. The current and future beer trends include specialty craft brews, digitalization, and sustainability.
Beer Market Trends
The past decade has been a true revolution in the beer industry. The restaurant industry needs to adapt to this change. That’s why we’ll dive a little deeper into the current trends in the field of the favorite hop and malt drink.
More On-Premise Consumption
Beer sales in restaurants, pubs, and bars are expected to reach pre-Covid levels by 2025. Even though fragile economic conditions and inflation might prolong that, on-premise consumption is nevertheless growing.
More eCommerce Sales
The shift to online purchases is growing. Websites are becoming one of the primary channels in both the B2B and B2C sales process. Additionally, as craft beer is consumed primarily by young people, there is still a lot of room to grow for online sales. Entirely new ways to buy and sell beer have emerged recently. For example, the subscription box business model is perfect for websites selling craft beer. That way, consumers know that they will regularly receive interesting and different types of craft beers.
Key Regions Are Growing Continuously
Asian countries are showing steady growth in beer consumption. That includes China, Vietnam, and even predominantly Muslim countries like Malaysia and Indonesia. These countries have a fairly poor craft beer market so there is a lot of room for growth.
New Markets Emerge
Brazil and Latin America have a large increase in beer consumption. That’s why breweries from the US, Mexico, and other countries with traditions in beer brewing are investing heavily export to Latin America.
Experimentation Is Key
The craft beer market is dominated by enthusiasts who want to try new tastes. That’s why breweries are often partnering in order to combine their knowledge of beer production. One of the trends in craft beer is brewing products by using unique and exotic ingredients.
Beer Market’s Future
The future of beer is as bright as a glass of cold lager on a hot summer day. Even though clients are looking for new and exotic drinks such as matcha lattes or alcoholic RTDs (ready-to-drink beverages), the craft revolution is what makes beer still one of the most consumed beverages in the US and globally.
Craft and Specialty Brews
The craft movement has gained momentum. But it’s still growing both in the US and globally. New craft breweries are constantly opening and they’re striving to get a grasp of the market. Doubtless, craft beer has a huge role to play in the future of the beer market. It’s expected to get an even larger share of the industry. Thus, bars and restaurants should start offering more unique craft beer options on their menus. Innovative flavors and unique brewing techniques can further expand the niche.
Craft beer enthusiasts might be willing to pay a significant price for a truly extraordinary and unique beer experience. That’s why breweries are likely to start producing exclusive beers that have exotic ingredients. This premiumization will increase the profits of breweries as well as the bars and restaurants’ profit margins.
Like many other industries, the beer market is also gaining momentum and experiencing a digital transformation. A lot of eCommerce websites offer craft beers, accessories for brewing beer at home, subscription boxes, and more. The dropshipping model is also applicable for beer and spirits. The main thing you need is to find a reliable alcohol and beer distributor. The convenience of reserving a table or buying beer online makes eCommerce a main channel for almost all types of beer companies.
Eco-consciousness is very important, especially for young adults. This gives breweries even more reasons to use sustainable practices.
A lot of consumers are searching for healthier alternatives to their favorite drinks. That’s why some breweries are releasing to the market beers that are gluten-free, non-alcoholic, or low-carb. Brewers are also exploring new techniques that allow for other healthier beer alternatives.
Frequently Asked Questions about the Beer Market
If the article above hasn’t answered all your about the trends of the beer industry, maybe the following frequently asked questions and their answers will bring light to the matter.
What Are the Main Beer Associations?
The American Homebrewers Association and the Brewers Association are the well-known organizations of brewers in the US. As its name suggests, the homebrewers association supports the homebrewing community. On the other hand, the Brewers Association has a mission to protect and promote American craft breweries and their products.
What Types of Businesses Exist in the Beer Market?
Naturally, breweries are the most well-known companies in the beer industry. However, starting a brewery requires a lot of capital, research, and preparation. Here are some ideas for other businesses you might consider if you’re on your way to becoming an entrepreneur:
- Taproom, brewpub, or a beer store. With the craft beer revolution, a lot of beer enthusiasts are looking for places where they can enjoy a cold beer on tap.
- Wholesale beer distribution business. You can become the middleman between breweries and other businesses. Beer distributors can earn significant profits if they find the right customers and breweries to work with.
- Beer eCommerce store. Online trade is on the rise. You can benefit from that trend. Make sure to do thorough research on how to ship beer.
- Beer delivery and subscription boxes. Great options for gifts and for beer lovers.
Where Can Beer Experts Read Industry News?
Beer Marketer's Insights is one of the leading sources for the US beer industry. Other than that, other magazines and sources include Craft Beer & Brewing Magazine, Beer & Brewer Magazine, Beer Business Daily, Sip Publishing, Brewbound, and many more. Nowadays, video content is also widely available. That’s why there are lots of YouTube channels and creators that are focused on beer and other alcoholic beverages.