Craft Beer Market to Top $186 Billion: Report
The global craft beer industry was valued at $108.9 billion in 2018, and is expected to achieve an 8% compound annual growth rate through 2025, reaching $186.5 in total sales.
Allied Market Research reports that key factors driving growth in the craft beer market include rising disposable incomes and younger populations - plus a surge in the number of on-premise distribution channels.
Researchers note that more women are choosing craft beers, which is fueling market growth. Rising taxes and volatile prices for raw materials are limiting market growth to some extent.
The report says millennials are leading the surge in craft beer popularity, as pub and bar culture among this segment of the population is on the rise. A growing inclination toward hopping bars, restaurants, coffee shops, clubs, and hostels leads analysts to predict that the on-trade segment will grow at an 8.6% CAGR.
Purchasing beer from retail outlets such as supermarkets, convenience stores, kiosks, and other shops accounts for nearly two-thirds of the global craft beer market. Lagers dominate the market, accounting for almost three-fifths of sales. Lagers are expected to continue this rule of the market until 2025, Allied says.
That is not to say that ale is lagging far behind. Ales are not only gaining in popularity, but are projected to grow at the fastest CAGR of 8.8% in the next six years.
North America accounted for more than one-third of craft beer revenues in 2018, and is expected to stay in the lead through 2025. Buy other regions are not far behind.
The Asia-Pacific region is expected to have the fastest CAGR, 5.70%, as people in that area of the globe are increasingly attracted to premium products and services. Europe is also experiencing a surge in craft beer sales, and as disposable income rises throughout the region it is expected to play a pivotal role in the growth of the global market.
Leading market players in the craft beer industry included Carlsberg Group, Heineken N.V., Erdinger Brewery, Anheuser-Busch InBev, Oettinger Brewery, BAVARIA N.V., Lasco Brewery, Radeberger Brewery, and Diageo PLC.
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