Beer is one of the most widely consumed alcoholic drinks in the world and comes in several varieties based on the type of hops or barley used and the brewing process. Craft beer production involves smaller brewing setups with unique flavours developed through experimentation with varied ingredients and brewing styles. The growing preference for locally produced craft beers has led to increased innovation and variety in the global beer market.
The global beer market is estimated to be valued at US$ 946.21 Mn in 2024 and is expected to exhibit a CAGR of 5.9% over the forecast period 2024-2031, as highlighted in a new report published by Coherent Market Insights.
Market Opportunity:
The growing popularity of craft beers presents a major market opportunity in the global beer market. Young consumers are increasingly preferring locally brewed small-batch beers that offer unique flavours and styles over mass-produced mainstream beers. This shift towards craft beers has led many established breweries to invest in smaller setups for specialized craft beer production. It has also encouraged the entry of many microbreweries and pub brewers into the market. The variety and experimentation offered by craft beers allows consumers to discover new flavours and brewing techniques. This constant innovation in craft beer styles and ingredients is expected to drive further growth in the global beer market over the forecast period. Craft breweries can capitalize on this opportunity by developing unique seasonal beers, collaborating with local farms for specialty ingredients and leveraging social media to build brands and connect with target customers.
Porter’s Analysis
Threat of new entrants: The beer market is highly competitive as it is an established industry with dominant brands. Large capital investments and established distribution channels pose significant barriers for new players. However, expansion opportunities in craft beer segments can attract smaller local players.
Bargaining power of buyers: Buyers have moderate bargaining power due to the availability of substitute products like liquor and wine. However, brand loyalty and different occasions for beer consumption reduces impact on price negotiations.
Bargaining power of suppliers: The key raw materials for beer such as malted barley, hops and water are agricultural commodities prices of which fluctuate frequently. This gives suppliers moderate bargaining power over manufacturers.
Threat of new substitutes: Alternatives such as wine and spirits pose a competitive threat. However, beer occupies unique social occasions lowering risk from substitutes. Non-alcoholic varieties also emerge as alternatives.
Competitive rivalry: Intense competition exists amongst large brewers dominating regional markets. Brand differentiation, product innovation and expansion into new markets are key to sustain rivalry.
SWOT Analysis
Strength: Established brands, diversified products and global presence of key players. Cost efficiencies achieved through economies of scale. Innovation in styles, flavors extends beer occasion usage.
Weakness: High input and marketing costs impact margins. Infrastructure challenges in tapping growing craft beer potential. Vulnerable to regulations on marketing and taxation. Supply chain disruptions affect smooth operations.
Opportunity: Rapid growth of premium and craft beer segments in developing markets offer new opportunities. Emerging occasions and experimentation with styles can boost volumes. Non-alcoholic and low alcohol innovations expand consumer base.
Threats: Increased health awareness and moderation trends pose risks. Regulations on packaging, ingredients and marketing restrains growth. Intense competition from alternative beverages squeezes margins. Vulnerable to commodity price volatility and climate change impacts.
Key Takeaways
The Global Beer Market Size is expected to witness high growth driven by expansion in developing regions of Asia Pacific and Latin America. Rapid urbanization, rising disposable incomes and westernization of lifestyles in these countries are increasing socialization at pubs and bars which is fueling beer consumption. Growing middle class population coupled with hot and humid weather conditions also makes beer a favored beverage alternative. The global Beer Market is estimated to be valued at US$ 946.21 Mn in 2024 and is expected to exhibit a CAGR of 5.9% over the forecast period 2024 to 2031.
Regional analysis shows that Asia Pacific dominates the global beer market with a volume share of over 35% in 2024 led by countries like China, India. The region is projected to be the fastest growing market through 2031 supported by changing social trends and demographic tailwinds in emerging economies. North America and Europe collectively account for around 50% share but show moderate single digit growth outlook.
Key players operating in the beer market are B. Braun Melsungen AG, Baxter, BD, Johnson & Johnson Private Limited, Stryker Corp., Integra LifeSciences Corporation, Medtronic plc, Acera Surgical, Inc., Anthrex, Inc., Acelity L.P. Inc., Biorez, Aroa Biosurgery Limited, Mison
Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it