Brewery Equipment Market Overview
Rise in beer consumption, rapidly growing micro-breweries, and continuous innovation of brewery equipment are some of the key factors driving the global brewery equipment market growth.
Brewery equipment comprises a set of instruments and processing systems used in production of beer. The brewing process consists of several steps such as milling, malting, cellaring, mashing, boiling, cooling, wort separation, conditioning, fermentation, filtration, carbonation, and filling. Various equipment used in these steps of the process would boost the brewery equipment market.
Based on product, the brewery equipment market has been categorized into fermentation, brewhouse, carbonation, control and monitoring, filling and packaging, mashing, filtration, milling, and fitting and valve systems. Among these, fermentation category held the largest revenue share, of 60%, in 2018, due to the need of various equipment in this process, which involves removing unnecessary sediments from beer and improving the quality and flavor.
Based on end user, the brewery equipment market has been categorized into macro-brewery, micro-brewery, brewpub, farm brewery, and regional brewery. Of these, macro-brewery category held the largest market share in 2018, owing to the requirement of high-capacity equipment to carry out large-scale beer production. Further, on the basis of material type, the market has been categorized into brass, copper, aluminum, stainless steel, and mild steel. Based on size, the market has been categorized into small size, medium size, and large size.
Geographically, the European brewery equipment market held the largest share in 2018, owing to the presence of various major beer manufacturers in the region. In addition, countries in the region account for a very high demand for beer. For instance, Germany, the U.K., Russia, and Spain are among top ten beer consuming countries in the world. Furthermore, rising on-trade distribution of alcohol in bars, pubs, and other distribution channels is also supporting the growth of the brewery industry, which in turn, boost the demand for brewery equipment in the region.
Brewery Equipment Market Dynamics
Rise in consumption of beer is a major factor that drives the demand for brewery equipment. Due to changing lifestyle of populace around the world, presently beer drinking in bars or house parties has become a part of the sociocultural context. In addition, increasing disposable income of individuals in developing countries, such as India, China, and Australia, has increased the demand for beer. For instance, beer consumption in India is expected to grow at the rate of round 6.9% for next three years. With the rise in beer consumption, brewery companies are investing more to enhance their product portfolio and focusing on expansion of plant capacity to strengthen their position in the brewery market, which fuel the brewery equipment market growth across the globe.
Digitalization and automation of equipment for process optimization are the opportunities for companies operating in the brewery equipment market. Automated brewery equipment with advanced networking capabilities is designed to reduce the time to manage equipment and processes and also to improve the scale of operation while maintaining consistent quality. For instance, brewing system can reduce the production time by 50% and increase the production capacity by 25%.
Brewery Equipment Market Competitive Landscape
The brewery equipment market is moderately fragmented and competitive in nature, due to the presence of moderate number of players. Major companies are mainly focusing on facility expansion to expand their market presence. For instance, in November 2018, Brick Brewing Co. Limited invested $9.6 million for the expansion of its brewery plant in Kitchener, Canada. 65,600 square feet expansion of warehouse and production facilities, along with several equipment investments would improve the production capacity and operational efficiency of the company.
Furthermore, some of the players in the brewery equipment market are also focusing on mergers and acquisitions to expand their foothold. For instance, in 2018, GEA Group AG completed the acquisition of Vipoll d.o.o., a Slovenian manufacturer of filling technologies for soft drinks, beer, and fresh milk products. Moreover, in October 2018, Krones AG acquired W.M Sprinkman Corporation, a U.S.-based food and beverages processing equipment company, specialized in dairy and brewing equipment.
Some of the key players operating in the global brewery equipment market include Alfa Laval AB, GEA Group AG, Krones AG, Paul Mueller Company, Meura SA, Della Toffola S.p.A., Criveller Group, KASPAR SCHULZ Brauereimaschinenfabrik & Apparatebauanstalt GmbH, Ningbo Lehui International Engineering Equipment Co. Ltd., Shanghai Hengcheng Beverage Equipment Co. Ltd., and Hypro Group.
The report will also provide country-wise brewery equipment market analysis. Some of the major countries that are covered in the report include the U.S., Canada, the U.K., Germany, France, Italy, Spain, China, Japan, India, Australia, South Africa, Turkey, and the U.A.E.