Beer Processing Market is Segmented By Beer Type (Lager, Ale and Stout, Specialty Beer, Low Alcohol Beer), By Equipment Type (Macro brewery Equipment, Craft Brewery Equipment), By Brewery Type (Macro Brewery, Micro-Brewery, Craft Brewery, Brewpub, Others), By Distribution Channel (Off-trade trade, On-trade trade), By Price Category (Premium, Super-Premium, Mainstream, Discount), By Region (North America, Latin America, Europe, Asia Pacific, Middle East, and Africa) – Share, Size, Outlook, and Opportunity Analysis 204-2031
Market Overview
Beer Processing Market is expected to reach at a CAGR of 4.2% during the forecast period (2024-2031).
Beer is fermented and made from barley, wheat, rice, potato, etc. Brewing is defined as making beer by infusion, boiling, and fermentation. Brewing is not unique to beer production, and it is also the essential first part of the whiskey production process. The following steps in beer production are malting, kilning, mailing, mashing, boiling of wort, hops, fermentation, finishing, aging, maturation, and carbonation. One of the major crucial steps in beer brewing is the fermentation process; technically, fermentation is converting the fermentable sugars into carbon dioxide and ethanol equally, with the help of yeast. The rising trend of low- or no-alcohol, and organic beer coupled with the increasing number of microbreweries, as well as brewpubs, has significantly driven the beer processing market.
Market Summary
| Metrics | Details |
| Market CAGR | 4.2% |
| Segments Covered | By Beer Type, By Equipment Type, By Brewery Type, By Distribution Channel, By Price Category, and By Region |
| Report Insights Covered | Competitive Landscape Analysis, Company Profile Analysis, Market Size, Share, Growth, Demand, Recent Developments, Mergers and acquisitions, New Product Launches, Growth Strategies, Revenue Analysis, and Other key insights. |
| Fastest Growing Region | Asia Pacific |
| Largest Market Share | North America |
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Market Dynamics
The growing number of microbreweries and brewpubs is anticipated to boost beer processing demand
The global beer processing market is mainly driven due to the rising number of microbreweries and brewpubs. According to the brewer’s association, in the US, the total breweries count is 9247 in 2021 compared to 2018, which is increased by 20%. Also, brewpubs count in the US 3307, which is 35% of the total breweries. Moreover, the number of wine shops and clubs is rising to tap the proliferating demand for alcoholic beverages. With a 1.3% expansion, the number of wine shops in the US has reached over 43000 in 2021. Moreover, product innovations in the brewery equipment market further contribute to the growth of the beer processing market.
However, rising power and energy costs associated with beer processing equipment are a major challenge to the market's growth. Higher excise duties imposed on the beer products will further restrain the growth of the global beer processing market.
Market Segmentation Analysis
Craft breweries held the highest market revenue share of xx% in the year 2021
Based on the brewery type, craft breweries held the largest share as of 2021. There has been a rise in the demand for premium and flavored beer produced in small batches. Consumers also prefer craft beer more as compared to traditional beer. Craft beer has led to an increase in the number of microbreweries and brewpubs around the globe. The rising product innovations by the manufacturers and the number of craft breweries such as brewpubs and microbreweries will further create lucrative growth opportunities for the market.
Based on beer type, low alcoholic beer is estimated to grow the beer processing market. Consumers' swift toward low alcohol intake boosts the overall beer market as new microbreweries and brewpubs are opening globally, offering a variety of beer produced in small batches, which provides profitable opportunities for the beer processor's new product launches and expansions.
Based on distribution channels, the on-trade segment in the beer market is expected to grow in the beer processing industry during the forecast period. The growing disposable income, increasing number of pubs, trend bars, and modern restaurants has resulted in consumers paying more for beer products. Generally, the profit margins of beer processors when selling to on-trade consumers are twice those compared to selling to off-trade consumers. Along with higher margins in the on-trade channels, a brewer's products are presented in their best possible form.
Market Geographical Share
North America is expected to dominate the global beer processing market in the year 2021
By geography, North America is expected to dominate the global beer processing market in 2021, growing with a CAGR of xx% during the forecast period. Higher invested major brewers for expansion in the North American region are driving the market growth. In addition, the region has a significant demand for craft beers. According to the Brewers Association, in the US, the craft beer market in 2021 is 27% of the total beer market, and it also has a high number of craft breweries, with around 9200 breweries in the year 2021.
Asia Pacific region is witnessing a growing trend of premiumization and low or no alcohol beer beverages due to their health benefits. The region is marked by large beer manufacturers, including Anheuser-Busch InBev, Heineken N.V., United Breweries, China Resources Snow Breweries Limited, and Ningbo Lehui International Engineering Equipment Co Ltd.
Companies and Competitive Landscape
The beer processing market is highly fragmented, with many regional players. Some of the major players in the market are Anheuser-Busch InBev, Carlsberg Group, Heineken, Asahi Group Holdings, Ltd, Molson Coors Brewing Company, and Tsingtao Brewery Co. Ltd. Key players would require high investments in producing innovative products to cater to the changing consumer preferences for convenience drinks. For instance, in January 2022, Anheuser-Busch Companies, LLC launched a new industry-leading innovation of beer Bud Light NEXT, its first-ever zero carb beer. In July 2020, Anheuser-Busch Companies, LLC lunches a nonalcoholic Budweiser, its aims to target the health-conscious market. In September 2021, The Boston Beer Company launched the New Bevy Long Drink which is a new, refreshing beverage inspired by the national cocktail of Finland, the Long Drink.
COVID-19 Impact on Market
Negative impact on the global beer processing market
The covid 19 pandemic has had a negative impact on the beer processing market in 2020. The beer processing industry is the second largest industry in terms of the major income of the food and beverages industry. The main source of income in the beer market is distribution channels through on-trade sales, but the government strictly shut down the bars and restaurants, and pubs, which caused decreased demand for market size. Moreover, reduced CO2 supply during the covid pandemic is mainly used as carbonation processing in the production of beer and soft drinks. The covid has affected all beer processing production, and ingredients like hops, yeast, and malt are used in beer.
