The global craft beer market is expected to reach $502.9 billion by 2025, according to a new report by Grand View Research, Inc.
The market is expected to witness substantial growth over the forecast period due to the rising demand for low-ABV and flavored beer, the report states. The number of brewers in the global market is growing significantly on account of the rising demand for the product.
As a result, the demand for grains such as barley, wheat, yeast, sugar, and hops is increasing substantially. However, the alternative applications of the raw materials are expected to lower the bargaining power of the brewers, the report believes.
The demand for the pale ale, IPA and amber ale is growing as these three craft products are widely preferred by the consumers, the report states, owing to the balanced composition of the raw materials in the product including malt, hop, water, and yeast.
Further findings from the report suggest:
- On-trade distribution of craft beer accounted for over 50% in 2015 of the overall volume share, which is primarily attributed to the high consumption of the product in restaurants, bars, and clubs in developed economies.
- Off-trade distribution of the product is expected to witness significant growth in developing economies as the consumer spending power in these countries is low with high price of the product in on-trade distribution outlets as compared to its counterpart
Grand View Research. is a U.S.-based market research and consulting company headquartered in San Francisco. The company provides syndicated research reports, customized research reports and consulting services.