Craft Beer Market Size, Trends, Share, Growth, and Opportunity Forecast, 2024 - 2031 Global Industry Analysis by Product Type (Ale, Lager, Porter, Stout, and Others), Distribution Channel (On-trade, Off-trade), Brewery Size (Small, Medium, Large), Packaging Type (Cans, Bottles, Kegs), and Geography (North America, Europe, Asia Pacific, Latin America, Middle East & Africa)

Craft Beer Market Size and Forecast 2024 to 2031

The Global Craft Beer Market was valued at USD 143.26 Billion in 2023 and is anticipated to reach a value of USD 341.44 Billion by 2031 expanding at a CAGR of 11.6% between 2024 and 2031.

The craft beer business has grown significantly over the previous decade, owing to rising consumer desire for innovative and tasty beverages. Craft beer is often made by small, independent brewers that prioritize quality ingredients, traditional brewing methods, and unique flavor profiles. Craft beer has established a niche in the larger beer market by appealing to consumers seeking an alternative to mass-produced beer. This boom in popularity is due to rising customer demand for premium, artisanal products, as well as an increase in microbreweries throughout several countries. As the industry matures, the introduction of novel tastes, seasonal offers, and sustainable brewing processes will have a significant impact on its future.

Craft Beer Market Major Driving Forces

·         Increasing demand for specialty beverages: One of the primary drivers of the craft beer market's growth is the increasing demand for premium alcoholic beverages with distinct taste profiles. Craft beer, unlike mass-produced beers, has distinct characteristics, ranging from fruity and spicy undertones to rich, malt-heavy brews. This variety appeals to a wide range of consumers, from young people looking for a new experience to seasoned beer drinkers looking for depth and complexity.  

·         Shift in Consumer Lifestyle and Preferences: Consumer preferences have shifted significantly over time, particularly among millennials and Generation Z. These younger generations are not only prepared to experiment with new flavors, but they also value quality over quantity. The global trend toward better living and mindful drinking has resulted in an increase in demand for low-alcohol and alcohol-free craft brews, accelerating market growth.

·         Expanding Number of Microbreweries: The increasing number of small, independent breweries has a direct impact on the expansion of the craft beer sector. These microbreweries frequently experiment with local ingredients and traditional brewing methods, distinguishing themselves from larger beer manufacturers. The fast expansion of microbreweries, particularly in emerging nations, has increased the supply of craft beer, making it more affordable to a wider audience.

·         Technological Advancements in Brewing: Brewing technological advancements have also contributed to increased production capacity while maintaining the artisanal nature of craft beer. From fermentation control technologies to energy-efficient brewing methods, brewers can now create high-quality craft beer on a bigger scale while keeping distinct flavor profiles. The use of artificial intelligence (AI) to optimize brewing recipes and refine production is also gaining popularity.

Craft Beer Market Key Opportunities

·         Emerging Markets in Asia Pacific: The Asia Pacific region offers enormous prospects for expanding the craft beer market. With a fast developing middle class, rising disposable incomes, and shifting consumer preferences, nations such as China, India, and Japan are seeing an increase in demand for premium beverages, including craft beer. As consumer palates in these places evolve, breweries have the chance to develop regionally relevant flavors and seasonal offers. The Asia Pacific market is predicted to develop the quickest, with a CAGR of 12.0% from 2024 to 2031.

·         Focus on Health-Conscious Consumers: As the health and wellness trend continues to affect the beverage industry, there is a growing desire for low-alcohol and alcohol-free craft brews. These healthier alternatives let customers to enjoy the flavors of craft beer without the alcohol level, making them a popular choice for people seeking to live a balanced lifestyle. Craft breweries who can cater to this rising demographic by producing innovative low-alcohol or functional craft beers will have a significant advantage.

·         Innovation in Flavors and Seasonal Beers: Craft brewers are noted for their willingness to experiment with different flavors, ingredients, and brewing methods. This continual innovation not only draws daring drinkers, but also enables breweries to adapt to changing customer preferences. Seasonal beers, which are frequently made with limited-edition ingredients or designed for specific holidays and events, are very popular. Breweries may keep customers interested and encourage repeat purchases by offering a rotating range of seasonal craft beers.

Craft Beer Market Key Trends

·         The increased demand for low-alcohol and non-alcoholic beverages is altering the craft beer industry. Many consumers want healthier choices while still enjoying the flavor and social experience of beer. Craft breweries are increasingly focusing on this market, creating beers with low alcohol by volume (ABV) or even alcohol-free alternatives while retaining the rich, complex tastes that craft beer enthusiasts expect.

·         Consumers are increasingly looking for local and independent breweries that value quality and workmanship over bulk production. This movement has resulted in a renewed interest in hyper-local craft beer, in which breweries use ingredients from neighboring farms and markets to make brews that reflect the local terroir. The emphasis on "drinking local" benefits smaller businesses while providing consumers with a unique and personalized drinking experience.

·         Sustainability is becoming a top priority in the craft beer sector. Breweries that use environmentally responsible practices, including as employing renewable energy, reducing waste, and obtaining organic ingredients, are gaining popularity among morally conscious customers. Furthermore, breweries that participate in community-driven activities and assist local economies are seen more positively, increasing brand loyalty.

Region-wise Market Insights

North America accounted for the largest market share at 34.7% in 2023 whereas, Asia Pacific is expected to register the fastest growth, expanding at a CAGR of 12.0% between 2024 and 2031.

North America held the biggest market share in 2023. The region has a well-established craft beer industry, with thousands of microbreweries producing various and innovative products. The United States is at the forefront of the craft beer movement, with towns such as Portland, San Diego, and Denver experiencing high demand for beer festivals and craft beer bars. The region's high disposable income, changing beer tastes, and desire for artisanal products all contribute to its supremacy in the global market. Europe also has a substantial share of the market, with countries such as Germany, Belgium, and the United Kingdom noted for their strong beer traditions. Craft beer in Europe frequently mixes traditional brewing techniques with contemporary approaches, making it a popular choice for customers who value both quality and history. The region's emphasis on sustainability, as well as the growing popularity of organic and bio-certified beers, all help to drive market growth.

Asia Pacific is the fastest-growing region, with a predicted 12.0% CAGR from 2024 to 2031. Craft beer is still in its infancy in nations such as China, India, and Japan, but it is expanding quickly. Local breweries in these nations are experimenting with traditional ingredients and flavors to produce craft beers that appeal to regional tastes. The rising middle class, together with an increasing number of expatriates and visitors, drives up demand for craft beer in this region.

Market Competition Landscape

The global craft beer market is very competitive, with both established businesses and new entrants. To increase their market position, leading breweries implement methods such as product innovation, regional expansion, and sustainable practices. Furthermore, several firms are utilizing e-commerce platforms and direct-to-consumer channels to access a larger market. These major businesses are investing in mergers, acquisitions, and collaborations with smaller breweries in order to broaden their portfolios and keep their competitive advantage. Furthermore, many breweries are creating exclusive, limited-edition beers and cooperating with local businesses to provide distinctive offers that appeal to certain markets.

Key players in the global craft beer market implement various organic and inorganic strategies to strengthen and improve their market positioning. Prominent players in the market include:

·         Anheuser-Busch InBev

·         Boston Beer Company

·         Heineken N.V.

·         Sierra Nevada Brewing Co.

·         Dogfish Head Craft Brewery

·         Molson Coors Beverage Company

·         BrewDog

·         Carlsberg Group

·         New Belgium Brewing Company

·         Founders Brewing Co.

·         Stone Brewing

·         Asahi Group Holdings