Beer Market Outlook to 2029

Global Beer Market Overview

The global beer market was valued at USD 806 Bn in 2023, driven primarily by increasing consumer demand across emerging economies and the rising popularity of craft and premium beers. The market has seen substantial growth due to urbanization, changing consumer preferences, and the expansion of modern retail channels, which have facilitated greater access to various beer products.

Prominent players in market include Anheuser-Busch InBev, Heineken, Molson Coors Beverage Company and Asahi Group Holdings Ltd. These companies collectively hold a significant market share, driven by their extensive distribution networks, diverse product portfolios, and strategic acquisitions.

In 2023, Tiger Beer has recently launched Tiger Soju Infused Lager, a unique beverage that combines the traditional elements of lager with the popular Korean spirit, soju marking it as the first of its kind in the market. The lager is available in two initial flavors: Gutsy Grape and Cheeky Plum, with an alcohol by volume (ABV) of 5.5%.

Global Beer Current Market Analysis

APAC as dominant region: The Asia-Pacific (APAC) region stands as the dominant force in the global beer market, underpinned by its vast and rapidly urbanizing population of approximately 2.5 billion in 2023. Key markets geography such as China, Japan, India, and South Korea are pivotal, with China leading the charge as the world's largest beer market by volume. In 2023, the average beer consumption per person in China was 34.7 liters, highlighting the scale of demand. The rise of craft beer and premium brands has further enhanced the region's market appeal. Notably, Budweiser Brewing APAC has capitalized on this trend by promoting high-end beer offerings in China, solidifying the region's critical role for global beer manufacturers seeking sustained growth.

Europe as emerging region: In 2023, Germanys GDP per capita was USD 52,726.97, reflecting its robust economy that supports a thriving beer industry. The Czech Republic, another major player, saw its GDP reach an all-time high of USD 330.86 billion in 2023, with a long-term average of USD 112.80 billion since 1975. Europe's strong beer culture, marked by high per capita consumptionespecially in the Czech Republic, which consistently ranks among the highest globally, and Germanyunderpins its market leadership. The region is also a center of innovation in brewing, driving the development of craft and specialty beers. Furthermore, Europe's well-established distribution networks and regulatory frameworks, such as the EU's proposed packaging and packaging waste regulation (PPWR) aimed at fostering a circular economy, reinforce its position as a critical market for global beer production and consumption.

China as dominant country: China has established itself as the dominant force in the market, fueled by its vast population, a burgeoning middle class, and a rising appetite for premium and craft beers. In 2023, the average annual per capita disposable income in China was USD 5,385.16, reflecting growing consumer purchasing power.In 2021, Chinas beer production grew by 5.6% compared to the previous year, marking a significant recovery from the impacts of the COVID-19 pandemic. The countrys annual beer consumption reached 45.7 billion liters. Imports also saw robust growth, with a 11% increase in volume and a 13% rise in value year-on-year. The industry is further buoyed by evolving consumer preferences, rapid urbanization with 933 million people residing in urban areas and the expansion of retail and e-commerce channels. These factors collectively reinforce Chinas position as the global leader in both beer consumption and production.

Global Beer Market Segmentation

The Global Beer Market can be segmented based on several factors:

By Type of Beer: Global beer market is segmented by type of beer into Lager, Stouts, Ale & others. In 2023, Lager led the market by value, driven by its broad appeal and popularity across diverse consumer segments. Lagers refreshing taste and wide-ranging availability, making it a favorite choice in both traditional and emerging markets. Lagers consistent innovation and diverse flavor profiles have further solidified its position as the top choice for beer enthusiasts globally.

By Distribution Channel: Global beer market is segmented by distribution channel into off-trade & on-trade. In 2023, Off-trade dominates the market by value, accounting for a significant share due to the growing preference for purchasing beer through retail outlets and supermarkets. On-trade distribution, while smaller, remains a crucial segment, driven by the consumption of beer in bars, restaurants, and pubs.

By Production: Global beer market is segmented by production into Macro brewery and Microbrewery. In 2023, Macro brewery dominates the market by value. Macro breweries benefit from extensive distribution networks, economies of scale, and strong brand recognition, which contribute to their market leadership. Their ability to produce large volumes and offer a wide range of products at competitive prices supports their dominance in the global beer market.

Global Beer Market Competitive Landscape

Carlsbergs Signature Alchemy: In 2024, Carlsberg has recently launched the Signature Alchemy Brews Series, which consists of six new super premium beers. This innovative series was developed and crafted at the Carlsberg Research Laboratory, emphasizing the company's commitment to quality and creativity in brewing. The series is positioned as super premium, targeting consumers looking for unique and high-quality beer experiences.

Heineken acquires SERVED: In 2023, Heineken has acquired a significant minority stake in SERVED, a rapidly growing ready-to-drink (RTD) cocktail and hard seltzer brand co-founded by brothers Dean and Ryan Ginsberg, along with musician Ellie Goulding. This investment, which marks Heineken's first venture outside the beer and cider sector in the UK, aims to bolster SERVED's growth and establish its premium positioning in the market.

AB InBev & ProductsUp: In 2023, AB InBev has entered into a strategic partnership with Productsup, a leading Product-to-Consumer (P2C) software company, aimed at enhancing its brand presence in the Dutch market. This collaboration is particularly focused on optimizing the online visibility and performance of AB InBev's Dutch brand portfolio, which includes popular names such as Hertog Jan, Leffe, and Jupiler.

Global Beer Industry Analysis

Global Beer Market Growth Drivers:

Improving Disposable Income: Increasing disposable income drives growth in the global beer market by boosting consumer spending on leisure activities like beer. The GDP per capita income reached 13.13 million globally. This leads to higher demand and premiumization, encouraging innovation in flavors and packaging. It also supports international trade, expanding market opportunities for both local and global beer producers.

Rising Westernization: Rising westernization triggers increased beer consumption globally through several pathways. Western lifestyles promote socializing in settings like bars and restaurants where beer is commonly consumed. Additionally, the adoption of Western cultural norms, such as beer as a casual beverage, influences consumer preferences worldwide.

Influence of Online Beer Sales & E-Commerce: Online beer sales and e-commerce have revolutionized the market, providing consumers with convenience and variety. They enable access to a wide selection of local and international brews, empowering smaller breweries and offering valuable consumer data for tailored marketing strategies. This drives industry growth and innovation.

Global Beer Market Challenges:

Health Concerns Regarding Beer Consumption: Excessive alcohol consumption is associated with health issues like liver disease, obesity, and cardiovascular problems. Beer's calorie and carbohydrate content can contribute to weight gain and diabetes. Health-conscious consumers are choosing lower-alcohol or non-alcoholic options. Public health campaigns and regulations aimed at reducing alcohol-related harm also influence consumer choices.

Economical Factor: Economic instability and rising production costs pose significant challenges. Economic downturns can reduce discretionary spending on premium and craft beers, while escalating costs for raw materials and packaging can squeeze profit margins and potentially lead to higher prices for consumers.

Global Beer Market Government Initiatives:

EU Green Deal and Sustainable Brewing: In 2018, The EU Green Deal was launched. It is a comprehensive initiative aimed at transforming Europe into a sustainable, climate-neutral continent by 2050. It encompasses various policies to decarbonize the economy, promote renewable energy, and encourage sustainable practices across multiple sectors, including brewing.

USA Tariff Reforms on Aluminum Imports: In 2024, In 2024, the United States government introduced reforms to tariffs on aluminum imports, a key material in beer packaging. This initiative is likely to benefit local breweries by reducing packaging costs, which can translate to lower prices for consumers and potentially higher profit margins for producers.

Global Beer Future Market Outlook

The Global Beer market is expected to reach USD 1.04 trillion by 2029 riven by several key factors including rising consumer demand for craft and premium beers, technological advancements in brewing, and expanding beer consumption in emerging markets. As consumer preferences continue to evolve, the market will see a greater emphasis on sustainability, health-conscious products, and innovative brewing techniques.

Future Market Trends

Growth in Low-Alcohol and Non-Alcoholic Beer Segments: The demand for low-alcohol and non-alcoholic beers is expected to rise significantly over the next five years, as consumers become more health-conscious and regulatory pressures increase. This trend will be particularly strong in markets like Europe and North America, where the shift towards healthier lifestyles is more pronounced.

Adoption of Sustainable Brewing Practices: Sustainability will become a major focus for breweries worldwide as environmental concerns take center stage. Over the next five years, more breweries are expected to adopt green technologies and sustainable practices, such as using renewable energy sources, reducing water usage, and minimizing waste.