Report with market evolution powered by AI – The global craft beer market size is estimated to grow by USD 123.2 billion from 2025-2029, according to Technavio. The market is estimated to grow at a CAGR of 13.7% during the forecast period. Increasing popularity of craft beer in developing countries is driving market growth, with a trend towards the rising population of millennials consuming craft beer worldwide. However, the high price of craft beer poses a challenge. Key market players include Anheuser Busch InBev SA NV, Asahi Group Holdings Ltd., Brasserie De La Senne, BrewDog Plc, Buxton Brewery Co. Ltd., Carlsberg Breweries AS, Cloudwater Brew Co., D.G. Yuengling and Son Inc., Diageo PLC, Duvel Moortgat NV, Heineken NV, Magic Rock Brewing Co. Ltd., Mikkeller APS, Palm Belgian Craft Brewers, SPRING VALLEY BREWERY CO., Stone Brewing Co. LLC, Swinkels Family Brewers, The Boston Beer Co. Inc., and United Breweries Ltd..

Market Driver

The craft beer market is experiencing a significant sales increase, driven by shifting consumer tastes towards artisanal brews from microbreweries. Local ingredients, millennials’ preference for social drinks, and health benefits are key trends. Bottled beer and party culture continue to be popular, with brewer associations offering brewing solutions and brewpub equipment. Popular premium quality beers include innovative flavors using indigenous ingredients. Sustainability and local sourcing are important for community-focused breweries. Collaborations between breweries and flavors, techniques, and consumer preferences continue to shape the market. Industrial lagers face competition from craft beers. Effingut Breweries and other independent producers cater to Gen Z’s desire for variety and unique experiences. Beer festivals showcase the rich beer culture and tastes influenced by Western culture. 

The global craft beer market is expected to grow significantly due to the increasing millennial population and their rising disposable incomes. Millennials, who represent a large consumer segment with substantial spending power, are increasingly drawn to craft beer’s diverse flavors and variants. In developing countries like India, where millennials make up nearly 30% of the population, this trend presents a significant opportunity for craft beer vendors to expand their customer base and market reach. 

 Market Challenges

• The craft beer market is experiencing a significant sales increase, driven by shifting consumer tastes towards artisanal beers made by microbreweries. These breweries use local ingredients to create unique, premium quality beers that resonate with millennials and Gen Z. Consumers value the social aspect of craft beer as a social drink, with health benefits being an added bonus. Microbreweries face challenges in bottling their beers while maintaining the same taste and quality as draft. The party culture associated with craft beer is fueling collaborations between breweries and brewer associations. Sustainability and local sourcing are key trends, with community-focused breweries leading the way. Brewing solutions and brewpub equipment are essential for microbreweries to produce innovative flavors using indigenous ingredients. Popular breweries like Effingut Breweries offer a variety of premium beers, reflecting the influence of beer culture and experience. Consumer preferences are shifting away from industrial lagers towards craft beers, with flavors and techniques being the main differentiators.
• The craft beer market faces a significant challenge due to the higher price point of craft beer compared to regular beer. A single pint of craft beer ranges from USD4 to USD5, representing approximately double the cost of standard beer. The primary reason for this price disparity is the increased cost of raw materials, such as hops, barley, and malt, which are essential for craft beer production. Furthermore, the rising costs of labor, water, electricity, and other production factors contribute to the higher price. Due to the small-batch production process, craft breweries do not reap the economies of scale enjoyed by larger beer manufacturers.

Segment Overview 

This craft beer market report extensively covers market segmentation by  

1. Product 
   • 1.1 India pale ale
   • 1.2 Seasonal craft beer
   • 1.3 Pale ale
   • 1.4 Amber ale
   • 1.5 Others
2. Distribution Channel
   • 2.1 Off-trade
   • 2.2 On-trade
3. Geography 
   • 3.1 North America
   • 3.2 Europe
   • 3.3 APAC
   • 3.4 South America
   • 3.5 Middle East and Africa

Research Analysis

Craft beer continues to capture the hearts and taste buds of consumers with sales increasing at an impressive rate. The trend towards artisanal brews made with local ingredients reflects a growing desire for authentic, high-quality beers that tell a story. Craft beer is no longer just a social drink but a cultural experience, particularly popular among millennials. Health benefits associated with moderate beer consumption add to its allure. Regulations and promotion challenges can pose hurdles, but tax breaks and brewer associations offer support. Brewing solutions and brewpub equipment cater to the needs of microbreweries, which are at the forefront of trends such as innovative flavors, indigenous ingredients, and collaborations. The Western culture influence on the beer industry is evident in the popularity of premium quality beers and beer festivals, where enthusiasts can celebrate the rich diversity of this beloved beverage.

Market Research Overview

Craft beer has experienced a significant sales increase in recent years, fueled by shifting consumer tastes towards artisanal brews made with local ingredients. Microbreweries have emerged as a popular choice for those seeking a social drink with a unique and authentic flavor. Millennials and Gen Z have played a key role in this trend, valuing the health benefits and community-focused aspects of craft beer. Brewer associations and brewing solutions companies have risen to meet the demands of this growing industry, providing innovative brewing techniques and equipment for brewpubs and independent producers. Popular breweries offer a variety of premium quality beers, with innovative flavors and indigenous ingredients, reflecting the influence of beer culture from around the world. Sustainability and local sourcing are important trends in the craft beer industry, with many breweries focusing on using eco-friendly practices and locally-sourced ingredients. Beer festivals and collaborations between breweries provide opportunities for consumers to try new and exciting flavors, while community-focused breweries continue to shape the industry with their unique approaches to brewing and business. Whether enjoyed at a local brewpub or in the comfort of one’s own home in a bottle, craft beer offers a rich and diverse experience that goes beyond the traditional industrial lager. From the tastes and techniques to the social and cultural aspects, craft beer is a dynamic and ever-evolving part of our modern world.

Table of Contents:

1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation

• Product
  • India Pale Ale
  • Seasonal Craft Beer
  • Pale Ale
  • Amber Ale
  • Others
• Distribution Channel
  • Off-trade
  • On-trade
• Geography
  • North America
  • Europe
  • APAC
  • South America
  • Middle East And Africa

     

7 Customer Landscape
8 Geographic Landscape
9 Drivers, Challenges, and Trends
10 Company Landscape
11 Company Analysis
12 Appendix

Key insights into market evolution with AI-powered analysis. Explore trends, segmentation, and growth drivers by requesting a free sample PDF HERE. 

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SOURCE: PR Newswire / Technavio (Press Release)
PHOTO CREDIT: Technavio