Beer Market Overview
Increasing disposable income of individuals in developed and developing countries, rapid changes in lifestyle, and creative marketing and innovative promotional strategies by the market players are some of the key factors driving the beer market growth. Additionally, spending more on beers by young urban-dwellers is also contributing to growth of the market.
Beer is an alcoholic beverage prepared by saccharification and fermentation of grain. It is one of the most extensively consumed alcoholic beverage worldwide, after tea and coffee. Ale, lager, stout and porter, wheat, India pale ale (IPA), and malt are types of beer that are being consumed in the recent times. Some other types of beer include low or no alcoholic content beer, premium lager beer, standard beer, and crafted beer. Presently, beer is a part of social milieu in many nations, and is associated with social traditions such as beer festivals. Consumption rate of beer is mostly high in the European countries as compared to Asia-Pacific (APAC).
Based on packaging, the beer market has been categorized into bottled, canned, and draught. Of these, draught still remains the majority of packaging for beers. On the basis of sales channel, the beer market has been categorized into on-trade and off-trade.
Booming demand for beers will support the market growth across the globe, especially in APAC. Due to increasing population and rapid adoption of western culture in the region, beer market in APAC is expected to register the fastest growth in coming years.
Beer Market Dynamics
Major factor that drives the demand for beers is changing lifestyle of populace around the world. In the recent times, drinking in bars or house parties is becoming a part of sociocultural context. Additionally, attitudes toward alcohol are changing, especially among young urban-dwellers, as drinking culture becomes more popular. Globally, they are now spending more on beers. These factors are boosting the demand for quality beers and thus driving market growth. Furthermore, beer is more widely accessible presently, with increasing number of outlets. Hence, the beer market has risen at a constant rate over the years with a continuous rise in number of beer consumers.
In addition, high disposable income of individuals also drives the beer market. Due to high disposable income, consumer spending is on the raise, which leads to the increased consumption of alcoholic drinks, particularly beer, as it is now more widely accessible for general community, across the globe.
Creative marketing and promotional activities are also playing a significant role in the growth of the beer market. In recent years, alcohol companies have been investing heavily in advertising and promotions to expand their market foothold. For instance, Heineken N.V. sponsored UEFA Champions League in 2018 and Carlsberg Breweries A/S sponsored UEFA Euro in 2016.
In addition, presently, beer companies have not marketed effectively for females, so there is a huge opportunity to increase their sales revenue by attracting female consumers. Due to increased percentage of working women and rapid adoption of western culture in last few years, beer consumption by female has considerably increased. As a result, women are going to be one of the major consumers of beers in future, and thus pose huge opportunity for the beer market, across the globe.
Beer Market Competitive Landscape
With increasing competition in the market, giant players are focusing on merger and acquisition strategies to expand their presence in the beer market. Recently, Carlsberg Breweries A/S completed the full acquisition of Olympic Brewery, which was the second largest brewer in Greece, to strengthen its brand’s position in the southern European market. In addition, Heineken N.V bought 40% stake in China Resources Beer Holdings Co.
Some of the key players operating in the global beer market include Asia Pacific Breweries, Grupo Modelo, Heineken N.V., Molson Coors Brewing Company, Yanjing Brewery, Tsingtao Brewery Company Limited, Carlsberg Breweries A/S, Sapporo Breweries, Anheuser-Busch Companies Inc., Asahi Breweries, SABMiller, Kirin Brewery Company Limited, and Scottish & Newcastle.
The report will also provide a country-wise analysis. Some of the major countries that are covered in the report include the U.S., Canada, U.K., Germany, France, Italy, Spain, China, Japan, India, Australia, South Africa, Turkey, U.A.E.