The global craft beer market size is expected to reach USD 190.66 billion by 2027, exhibiting a CAGR of 10.4% during the forecast period. The modification and improvement in the taste of craft beer will foster healthy growth of the market, states Fortune Business Insights, in a report, titled “Craft Beer Market Size, Share & COVID-19 Impact Analysis, By Type (Ale, Lager, Pilsner, and Others), Distribution Channel (On-Trade and Off-Trade), and Regional Forecast, 2020 – 2027.” The market size stood at USD 89.25 billion in 2019.
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Increasing Number of Microbreweries to Incite Development
The growing popularity of taprooms and brewpubs among millennials owing to the socializing trends will enable speedy expansion of the market. The emerging small and independent breweries to enhance beer production to serve the ever-rising demand of consumers will further propel healthy growth for the market. According to Brewers Association, small and independent brewers in the U.S. produced 26.3 million barrels in 2019, with volume growth of 4% than the prior year. However, the demand for other alcoholic craft beverages that have to go through vital distillation techniques to obtain high-quality liquor will subsequently impede the expansion of the market. Moreover, the availability of numerous flavors in alcoholic craft beverages such as grapefruit, plum, raspberry, lemon, and others can limit the adoption of craft beers in the near future.
Closed Bars and Breweries to Dwindle Market During Coronavirus
The lockdown in several countries has massively affected the hospitality industry. Hence, the closure of various pubs, restaurants, taprooms, and bars to maintain social distancing norms. According to a study by the Brewers Association, the total brewery sales in the U.S. went down by 30.5% in May compared to the prior year. The colossal drop in beer production and sales has negatively impacted the global market. Nearly, 89% of the brewing companies, either had stopped or slowed down their production, as their year-on-year (YoY) sales have declined in April. Nevertheless, the reopening of bars and pubs in the forthcoming months will help revive the sales and stabilize the market.
Rapid Urbanization to Favor Growth in Asia Pacific
The market in Asia Pacific is expected to experience rapid growth during the forecast period. The growth in the region is attributed to rapid urbanization and increasing disposable incomes of consumers. The growing demand for unique tastes will aid the expansion of the market in the region. North America is expected to hold a significant share during the forecast period owing to the expansion of craft breweries in the U.S. The surging popularity of new flavors will aid growth in the region. In addition, the increasing number of microbreweries with large volumetric production can have a tremendous impact on the market in North America
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