Crafted Beer Market

Crafted Beer Market at a Glance:

According to Reports and Insights analysis, the crafted beer market registers a CAGR of 6.5% which is expected to result in a market forecast value for 2030 of US$ 266.3 Bn. 

The Reports and Insights team has drafted a market research report on the worldwide market for a crafted beer with the objective of identifying the primary market drivers, market trends, challenges, and opportunities that business owners encounter. The report includes the market segmentation forecast, geographic perspective, and recent market developments for crafted beer. Additionally, it provides extensive information on market size, market share, industry and product insights, SWOT analysis, Porter's five forces analysis, PESTEL analysis, heat map analysis, market forecast, and prominent market players for crafted beer.

Crafted beer, in simple terms, is the beer created by craft breweries. However, sometimes, the beer produced by microbreweries is also called craft beer. Craft beers are artistically created beers that come in an array of colors and textures. These beers are created with stimulating flavors and are rarely bland in taste. Crafted beers are not produced for profit. Instead, they are generally produced as a hobby or as a medium to practice and display the art of the brewer. Unlike mainstream beers, these beers are more often than not served warmer for the drinker to experience the entirety of flavors.

Craft breweries are small breweries that conventionally manufacture their beer. These breweries enthusiastically create new flavors of beers through various modern and traditional brewing techniques. These breweries are privately owned and their focus is on the quality of beer rather than the quantity. Innovation is the hallmark of any craft brewery.

Scope of Report:

Crafted Beer Market Dynamics:

Market Drivers:

“Better taste and variety of options”

The retail beer market is currently a one size fits all type of market. The beer manufactured by large breweries like Diageo, AB InBev, Moledo, etc., is the standard beer that is widely available in the market. The alcohol content, texture, and flavor of these beers are standard across all markets. Crafted beers are customized beers and a variety of options with changes in the brewing process, texture, alcohol content, etc., available. White Owl, for example, is a craft brewery in India that produces a range of crafted beers, with beer for every person’s taste. Thus, the demand for craft beer is being driven by the wide variety available in the market.

“Growing Gen Z population”

The Gen Z population is known for standing out. This generation is known to do things differently. The one size fits all approach is unacceptable to this latest generation and they prefer all the customization possible. Consequently, the culture of craft breweries is on the rise as Gen Z prefers crafted beer to regular beer available in the market. Moreover, today, there are more than 2 billion Gen Zs around the world which is almost 30% of the entire world population.

“Rise in the number of craft breweries and microbreweries”

Although the crafted beer market was one of the worst affected markets by the coronavirus pandemic, the jump back in this market has been truly phenomenal. For example, in the year 2021, more than 200 craft breweries were established in the US. With the rise in the number of craft breweries and microbreweries, the awareness about the superiority of crafted beers is estimated to rise and thus this is projected to drive the crafted beer market.

Market Restraints:

“Increased experimentation leading to a wider range of beers by large breweries”

The strength of craft breweries and microbreweries is the extent of customization that they provide. Moreover, the quality of beer so produced is high due to the superior quality of ingredients used. Well-established large breweries are now bringing in new varieties to the market for capturing the market share of craft breweries. For example, the Kingfisher brand of Diageo now offers 8 types of beer to cater to different choices of customers. Moreover, the convenience offered by a pint cannot be matched by crafted beers.

“Availability of other alcoholic craft beverages”

While the share of beer in the crafted alcoholic beverages market is the highest, other crafted beverages such as wine, rum, whiskey, and gin are also on the rise. Especially, handcrafted wines are increasingly capturing the crafted beer market as consuming wine is also considered healthy. Thus, it is projected that the crafted beer market can shrink if more and more people shift to other crafted beverages.

Market Opportunities:

“Increased demand for low-alcohol beverages”

As people are becoming more health conscious since the pandemic, they are demanding beverages with low alcohol content. Consumption of too much alcohol leads to liver failure and thus causes lifetime ailments. Therefore, people are shifting to low-alcohol beverages and these are made available by craft breweries. This provides a great opportunity for the existing craft breweries to capitalize on this trend and make more low-alcohol options available in the market.

Crafter Beer Market Segmentation Stance:

The global crafted beer market is segmented based on product, brewer, age group, sales channel, and region.

By Product

• Brown Ale Craft Beer
• Pale Ale Craft Beer
• Porter Craft Beer
• Stout Craft Beer
• Pale Lager Craft Beer
• Pilsner Craft Beer
• Marzens Craft Beer
• Bocks Craft Beer
• Other Craft Beer Products

By Brewer

• American Sour Craft Beer
• Non-Alcoholic Craft Beer
• Belgian Fruit Lambic Craft Beer
• Flanders Red Ale Craft Beer
• Belgian Gueuze Craft Beer

By Age Group

• 21–35 Years Old
• 40–54 Years Old
• 55 Years and Above

By Sales Channel

• Microbreweries
• Brewpubs
• Contract Brewing Companies
• Independent Regional Craft Brewing Companies

By Region

• North America
• Asia Pacific
• Europe
• Latin America
• Middle East
• Africa

Crafted Beer Market Regional Stance:

North America is the leader in the crafted beer market. There were more than 8000 craft breweries in the US alone in 2020. Moreover, the first known craft brewery to be established in the US was in 1612. Thus, due to the well-established craft brewery market, and the existence of a strong organization governing all the breweries in the region, North America will be the market leader for the crafted beer market throughout the forecast period

The highest growth, however, can be attributed to the Asia Pacific region due to factors such as growing disposable income, rise in youth population, and rapid urbanization. Specifically, India and China are projected to witness sky-high growth due to a maturing population.