Production of beer has witnessed a significant surge over the past few years. The demand for beer is always at peak given the fact that beer is the oldest consumed and brewed alcoholic beverage in the world. Beer is a yeast fermented alcoholic beverage which is prepared from malt, and is flavored by adding hops. Beer is fairly popular in Neolithic Europe, with its initial production dating back to as early as 2050 B.C. Beer is mainly made from yeast, hops, water, and malted barley. However, several natural additives or carbohydrate sources can also be included. Similarly, other fermented carbohydrates such as rice, maize and wheat are also added for producing different flavors and styles.
The emergence of a number of local breweries has led to the significant surge of the global beer market in the past few years. Health benefits offered by the consumption of beer is one of the major factors pushing the growth of this industry. Consumption of beer in controlled quantities aids in the reduction of cholesterol level in the human body, and prevents kidney stone. Rise in beer consuming population and social acceptance of beer is another key factor aiding the global beer market. Increasing disposable income of the consumers, especially those residing in the developing countries is another major factor fueling the demand for beer in these countries. Asia-Pacific is one of the lucrative regions for major beer manufacturers to target. Further, advent of several local breweries in the developing countries in Asia-Pacific such as India, China and Japan among others is pushing the demand for beer.
However, alternatives of beer such as whiskey, vodka, rum and wine are a majorly restraining the growth of beer industry. Consumption of these alternatives by consumers is almost at par with beer hence it is currently having a negative impact on this industry and is likely to maintain the same impact throughout the forecast period. Further, external substitutes consist of ready-to-drink (RTD) beverages. The growth of beer industry is also barred by non-drinking population who chooses RTD beverages such as dairy drinks, and energy drinks among others. Heavy taxation and regulatory issues are other major factors barring the growth of beer market at present.
Adoption of strong marketing and promotional activities by major beer manufacturers is expected to ensure the smooth growth of beer market in the future, thus posing to be a suitable opportunity for the market growth. The beer market is classified on the basis of product types into lager beer, stout beer and ale beer. The market is dominated by Lager beer, both in terms of revenue and volume, and it is analyzed to retain market dominance throughout the forecast period.
The market has also been classified on the basis of regions into North America, Europe, Asia-Pacific, Middle East and Africa and Latin America. Europe is the market leader due to the high consumption of beer and high purchasing power of the consumers. However, the Northern and Western regions in Europe are considered to be matured markets, thereby impeding the growth of this market. The growth rate of beer is majorly attributed to Eastern Europe, with countries being, Russia and Ukraine among others. The Asia-Pacific beer market is analyzed to witness a rapid growth owing to the widening customer base for beer and rising purchasing power of the consumers and transition in the lifestyle of young population. Major contributing countries in Asia-Pacific are India and China.
Key players operating in the global beer market are Anheuser-Busch InBev SA/NV, Diageo Plc, SAB Miller Plc, Heineken International and Carlsberg Group among others. Aggressive marketing and promotional activities, product innovations, and mergers and acquisitions among others are some of the strategies implemented by players to sustain in this industry.