Despite being the leading beer brand in dollar sales in the United States in 2023, sales of Bud Light shrank by *** percent compared to the previous year. In contrast, sales of Modelo Especial grew during the same period by **** percent.

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Craft Beer Market Size 2025-2029

The craft beer market size is forecast to increase by USD 123.2 billion at a CAGR of 13.7% between 2024 and 2029.

The market is experiencing significant growth, driven by several key trends. One of the primary factors fueling market expansion is the increasing popularity of craft beer in developing countries. This global phenomenon is being driven by the rising number of consumers seeking unique and authentic beer experiences. The growing demand for unique flavors in the market has led many small-scale breweries to invest in high-quality microbrewery equipment to enhance their production capabilities. Another significant trend is the growing population of millennials, who are increasingly embracing craft beer due to its artisanal appeal and diverse flavors. However, the high price point of craft beer may pose a challenge to market growth. Despite this, the market is expected to continue its upward trajectory, driven by these and other emerging trends.

What will be the Size of the Market During the Forecast Period?

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The market has experienced significant sales growth in recent years, driven by evolving consumer tastes and the proliferation of microbreweries producing artisanal brews. Consumers are increasingly seeking out locally sourced ingredients and premium quality beers, leading to a shift away from mass-produced, bottled beers. This trend is particularly strong among millennials, who view craft beer as a social drink and appreciate the health benefits associated with its consumption. Regulations play a crucial role in the craft beer industry, with brewers navigating complex rules surrounding production, labeling, and distribution. Promotion challenges also exist, as brewers strive to differentiate themselves in a crowded marketplace.
Moreover, party culture and collaborations have emerged as effective marketing strategies, with breweries partnering to create innovative flavors using indigenous ingredients and Western cultural influences. Microbreweries are at the forefront of this trend, with many investing in brewing solutions and brewpub equipment to meet growing demand. Brewer associations also play a vital role in advocating for tax breaks and other industry initiatives, helping to support the growth of the market. Beer festivals have become popular events, providing opportunities for consumers to sample new brews and connect with brewers. The beer industry as a whole continues to adapt to these trends, with a focus on delivering high-quality, unique offerings to meet the demands of discerning consumers. The market dynamics of the craft beer industry are constantly evolving, with new breweries and innovative flavors emerging regularly. Overall, the future looks bright for the market, as it continues to capture the imagination and loyalty of consumers around the world.

How is this market segmented and which is the largest segment?

The market research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in 'USD billion' for the period 2025-2029, as well as historical data from 2019-2023 for the following segments.

Product

  India pale ale
  Seasonal craft beer
  Pale ale
  Amber ale
  Others


Distribution Channel

  Off-trade
  On-trade


Geography

  North America

    Canada
    US


  Europe

    Germany
    UK
    France


  APAC

    China
    India
    Japan


  South America

    Brazil
    Argentina


  Middle East and Africa

By Product Insights

The India pale ale segment is estimated to witness significant growth during the forecast period.

India Pale Ale (IPA), a stronger variant of pale ale with higher alcohol content and distinctive bitter taste, gained popularity through American craft beer revival in the late twentieth century. Originally carried by British colonists to India, IPA had nearly disappeared until its reincreasence. Today, it is the leading craft beer style globally, favored for its diverse exotic flavors. IPA's bitterness results from regular hops addition, making it a preferred choice among consumers worldwide. This beer style's popularity is driven by its unique character and health benefits associated with moderate beer consumption. Local ingredients are increasingly used in brewing IPA, contributing to its authenticity and appeal.

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The India pale ale segment was valued at USD 30.50 billion in 2019 and showed a gradual increase during the forecast period.

Regional Analysis

North America is estimated to contribute 35% to the growth of the global market during the forecast period.

Technavio's analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.

For more insights on the market share of various regions, Re

Beer Market size was valued at USD 864.94 Billion in 2024 and is projected to reach USD 1057.87 Billion by 2030. Along with CAGR of around 5.80%.

The Craft Beer Industry size was valued at USD XX Million in 2023 and is projected to reach USD XXX Million by 2032, exhibiting a CAGR of 9.00 % during the forecast periods. This segment creates demand for diverse, high-quality beers and thus boosts the beer craft industry. Craft beers, due to their diversity in flavor and finer ingredients compared with beers produced on a massive scale, appeal to a large group of beer enthusiasts and are widely presented in bars, restaurants, and at festivals. The types of beers range from IPAs to stouts and lagers, all differing by method of brewing. While tending towards more traditional methods of brewing, many craft breweries use new technologies in quality control and distribution. This would mean its effects on job creation, support to local farming, cultural impact, offering consumers a variety of choices, and sustainability through production at local and small levels. Recent developments include: In October 2022, as part of Anheuser-Busch InBev's strategy to accelerate economic growth in China and better meet consumer needs, Budweiser APAC opened a new brewery in Putian, China. A Budweiser craft brewery in the Fujian province is Budweiser's largest craft brewery in the Asia-Pacific., In April 2022, Bell's Brewery Inc. announced the launch of its new specialty beer, Sparkle and SMaSH, a Belgian Tripel brewed blend of single malt and hops, to celebrate women in the craft beer community., In March 2022, the Modelo Company announced the launch of new products, including an expansion on their successful flavor-forward Cheladas and new test offerings, such as a premium light beer, Modelo Oro. Modelo Chelada Naranja Picosa, Modelo Chelada Limón y Sal, Modelo Oro, Modelo Cantarito-Style Cerveza, and Modelo Ranch Water are among the new offerings.. Key drivers for this market are: Growing Demand for Nutricosmetics Among Millennials, Growing Beauty and Wellness Trend. Potential restraints include: Stringent Government Regulations and Product Guidelines. Notable trends are: Rising Number of Microbreweries.

Wine, Beer and Spirits Software Market Outlook

The global wine, beer, and spirits software market size was valued at approximately USD 2.5 billion in 2023 and is anticipated to reach around USD 6.8 billion by 2032, growing at a CAGR of 11.8% during the forecast period. The burgeoning market growth can be attributed to the increasing digitization in the beverage industry, which is driving demand for sophisticated software solutions. These solutions help manage inventory, streamline order processes, improve customer relationships, and enable data-driven decision-making through robust analytics.

The growth factors driving the wine, beer, and spirits software market are multidimensional. One significant factor is the escalating need for inventory management solutions. As production and distribution scales up to meet growing consumer demand, managing stock levels, tracking product lifecycles, and ensuring supply chain transparency becomes crucial. Advanced software solutions offer real-time inventory updates, minimizing the risk of stockouts or overstocking and thus optimizing operational efficiency. Additionally, stringent regulatory requirements necessitate precise labeling and traceability, compelling companies to adopt comprehensive software solutions for compliance.

Another critical growth driver is the increasing adoption of cloud-based solutions. Cloud technology offers several advantages, including lower upfront costs, scalability, and remote accessibility. These benefits are particularly appealing to small and medium-sized enterprises (SMEs) that may lack the resources for extensive on-premises infrastructure. Cloud solutions also facilitate real-time updates and data synchronization across multiple locations, making it easier for companies to manage their operations on a global scale. Furthermore, cloud-based systems often come with integrated security features, ensuring data protection and compliance with industry standards.

The growing emphasis on customer relationship management (CRM) is also propelling market growth. In a competitive market landscape, maintaining strong customer relationships is vital for brand loyalty and repeat business. CRM software enables companies to collect and analyze customer data, tailoring marketing strategies and enhancing customer engagement. Features such as personalized promotions, loyalty programs, and customer feedback mechanisms empower businesses to improve customer satisfaction and drive sales. Enhanced CRM capabilities are particularly beneficial for retailers and distributors looking to differentiate themselves in the marketplace.

From a regional perspective, North America and Europe are currently the largest markets for wine, beer, and spirits software, driven by high digital adoption rates and the presence of numerous established beverage companies. However, the Asia Pacific region is expected to witness the highest growth rate during the forecast period. Factors such as increasing disposable incomes, growing urbanization, and the rising popularity of alcoholic beverages are contributing to the market expansion in this region. Governments in several Asia Pacific countries are also promoting digital initiatives, further encouraging the adoption of software solutions in the beverage industry.

Deployment Mode Analysis

The deployment mode segment of the wine, beer, and spirits software market is bifurcated into on-premises and cloud solutions. On-premises solutions involve installing software on local servers and computers within an organization. This mode offers enhanced control over data security and customization capabilities, making it a preferred choice for larger enterprises with robust IT infrastructures. Companies with specific regulatory or compliance requirements also tend to opt for on-premises solutions, as they can tailor the software to meet stringent guidelines. However, the higher upfront costs and ongoing maintenance expenses can be a barrier for smaller businesses.

Conversely, cloud-based solutions are gaining significant traction across the beverage industry. These solutions are hosted on remote servers and accessed via the internet, offering flexibility and scalability that on-premises systems may lack. One of the primary advantages of cloud deployment is its cost-effectiveness. Businesses can avoid the high initial investment associated with hardware and software installation, opting instead for a subscription-based model. This pay-as-you-go approach is particularly appealing for small and medium enterprises (SMEs), allowing them to scale their software needs as they grow.

Despite declining per capita beer consumption, the Beer Manufacturing industry has experienced revenue growth thanks to consumers' growing preference for higher priced craft beers. Drinkers are shifting away from traditional full-strength beers, opting instead for craft beers offering perceived quality and unique drinking experiences. This has increased smaller, independent breweries’ viability, pushing down market share concentration. Major brewers Asahi and Lion are capitalising on this trend by expanding their craft beer portfolios through acquisitions and significant marketing investments, as seen in Lion's 2021 acquisition of Fermentum Pty Ltd. However, rising production costs, including a 31% surge in coarse grain prices and a 16% hike in excise taxes from 2021 to 2024, have slashed profit margins as manufacturers, especially small and independent breweries lacking economies of scale, have struggled to pass on these increases. These financial pressures have led to closures and restructuring among smaller brewers, while larger companies like Asahi and Lion have managed to maintain profitability. Their dominance, controlling nearly two-thirds of the market, makes it challenging for smaller breweries to compete as they struggle with distribution agreements and market reach. The overall decline in beer consumption poses a serious threat to the industry, forcing manufacturers to innovate by diversifying their product offerings and introducing mid-strength and low-carb beers. These factors have contributed to constrained annualised revenue growth of 0.9% over the past five years, reaching an expected total of $8.7 billion in 2024-25, when revenue will rise by an estimated 1.2%. In the coming years, the Beer Manufacturing industry will navigate significant challenges impacting its profitability and viability. Ongoing rises in excise taxes will continue to tighten profit margins as breweries struggle to fully pass these costs on to consumers. Smaller brewers will increasingly seek to differentiate themselves by operating brewpubs and offering unique experiences, although this increases costs and may hinder profitability. Declining per capita beer consumption further threatens the industry's future, forcing manufacturers to balance price increases with the potential to weaken demand. However, improved economic conditions may encourage consumers to spend more on premium or craft beers, helping to partially offset declining volumes and leading to price-driven revenue growth. Competing pressures are forecast to keep revenue relatively stable at $8.7 billion through the end of 2029-30.

Chart and table of population level and growth rate for the Beer Sheva, Israel metro area from 1950 to 2025.

Before the outbreak of the pandemic, alcohol sales in the United States had been rising for years. 2020 was a sharp reversal of this trend. In 2022, sales of alcoholic beverages finally reached and surpassed pre-pandemic levels at 259.8 billion U.S. dollars.

Where is the growth coming from?

If we look at the different segments within the alcoholic beverage industry, we see that beer has been losing market share to spirits and to a lesser extent wine. Since 2010, spirits have gathered an additional nine percent of the alcohol market while beer has lost nearly the same amount over that time. The rise in total alcohol sales might then be explained by this shift towards spirits, where in 2022 “all categories saw positive growth.