The global craft beer market size is expected to reach USD 190.66billion by 2027, exhibiting a CAGR of 10.4% during the forecast period. Themodification and improvement in the taste of craft beer will foster healthygrowth of the market, states Fortune Business Insights, in a report,titled “Craft Beer Market Size, Share & COVID-19 Impact Analysis, By Type(Ale, Lager, Pilsner, and Others), Distribution Channel (On-Trade andOff-Trade), and Regional Forecast, 2020 – 2027.” The marketsize stood at USD 89.25 billion in 2019.
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Market Driver:
Increasing Number of Microbreweries to Incite Development
The growing popularity of taprooms and brewpubs among millennialsowing to the socializing trends will enable speedy expansion of the market. Theemerging small and independent breweries to enhance beer production to servethe ever-rising demand of consumers will further propel healthy growth for themarket. According to Brewers Association, small and independent brewers in theU.S. produced 26.3 million barrels in 2019, with volume growth of 4% than theprior year. However, the demand for other alcoholic craft beverages that haveto go through vital distillation techniques to obtain high-quality liquor willsubsequently impede the expansion of the market. Moreover, the availability ofnumerous flavors in alcoholic craft beverages such as grapefruit, plum,raspberry, lemon, and others can limit the adoption of craft beers in the nearfuture.
Closed Bars and Breweries to Dwindle Market During Coronavirus
The lockdown in several countries has massively affected thehospitality industry. Hence, the closure of various pubs, restaurants,taprooms, and bars to maintain social distancing norms. According to a study bythe Brewers Association, the total brewery sales in the U.S. went down by 30.5%in May compared to the prior year. The colossal drop in beer production andsales has negatively impacted the global market. Nearly, 89% of the brewingcompanies, either had stopped or slowed down their production, as theiryear-on-year (YoY) sales have declined in April. Nevertheless, the reopening ofbars and pubs in the forthcoming months will help revive the sales andstabilize the market.
Regional Analysis:
Rapid Urbanization to Favor Growth in Asia Pacific
The market in Asia Pacific is expected to experience rapid growthduring the forecast period. The growth in the region is attributed to rapidurbanization and increasing disposable incomes of consumers. The growing demandfor unique tastes will aid the expansion of the market in the region. NorthAmerica is expected to hold a significant share during the forecast periodowing to the expansion of craft breweries in the U.S. The surgingpopularity of new flavors will aid growth in the region. In addition, theincreasing number of microbreweries with large volumetric production can have atremendous impact on the market in North America
Key Development:
September 2020: Introduction of Fungtn, alow ABV medicinal mushroom craft beer, including IPA brewed with Lion’s Manemushrooms for functional benefits
Browse Detailed Summary of Research Report with TOC:
https://www.fortunebusinessinsights.com/industry-reports/craft-beer-market-100736
