Once viewed as a hobby, craft beer has evolved into one of the fastest-growing and most popular segments in the US alcoholic beverage market. However, the industry has reached a critical juncture over the past decade, with oversaturation and the emergence of numerous substitutes stalling revenue growth. The pandemic coincided with the normalization phase of craft brewery growth, resulting in significant volatility. Craft breweries struggled to maintain consistent growth after the pandemic, unlike some external competitors. Revenue has been declining at a CAGR of 3.8% over the past five years and is expected to drop by 1.9% in 2024 alone, bringing revenue to $7.2 billion.Craft breweries are limited to producing fewer than 6.0 million barrels of beer annually. A result of, even successful craft breweries remain relatively small compared to multinational beverage producers. With this mandated smaller scope, craft brewers depend heavily on in-house sales and demand from on-premise markets such as local bars and restaurants. As more craft brewers enter the market, competition based on price has intensified. While internal price-based competition is expected, few small breweries can effectively match the prices of larger producers. This disadvantage has weakened profit since 2019.Conditions will likely improve over the next five years, but craft breweries may struggle to reach pre-pandemic highs as the craft beer trend settles into normalization. Profitability is expected to plateau as consumers look towards craft spirits and nonalcoholic beverages to satisfy their evolving tastes. This shift will force brewers to reduce prices or climb spending to retain their market share. Brewers will continue introducing ancillary activities at taprooms to encourage in-person sales and build loyalty. Also, rising disposable income levels and decreases in excise taxes on beer will likely entice new breweries to enter the market. Revenue is predicted to climb at a CAGR of 0.7% over the next five years, reaching $7.5 billion by 2029.

The Craft Beer Market Report Segments the Industry Into Product Type (Ales, Lagers, and Other Types); by End User (Men and Women); by Packaging (Bottles, Cans, and Others); Distribution Channel (On-Trade, and Off-Trade), and Geography (North America, Europe, Asia-Pacific, South America, and Middle East and Africa). Market Sizing is Presented in USD Value Terms for all the Abovementioned Segments.

In 2024, craft beer accounted for nearly ********* of the total U.S. retail beer market. After a decline in 2020, craft beer had the largest share of the beer market in its time in 2021, at **** percent. Since then, the market share has hovered around **** percent. Beer country In the 2000s, new craft breweries were not introduced in the United States very often, compared to the late 2010s. In 2023, there were *** craft brewery openings, while only ten years earlier, that number was just over ***. Craft or microbreweries could be found all over the United States, especially in states such as Pennsylvania, California, and New York. Each of these states accounted for over *** establishments in 2023. With *** establishments, California had the largest collection of craft breweries by far. Leading craft beer brands With the large number of craft breweries located in the United States comes a large variety of U.S. craft beer brands, such as Sierra Nevada, and Blue Moon. The leading craft beer of 2023 was a Belgian-style wheat ale by the name of New Belgium, which generated over *** million U.S. dollars of sales.

Sales volume of craft beer in the United States shrank by *** percent in 2023. Volume growth had rebounded in 2021 after a decline in 2020 due to the COVID-19 pandemic but has been trending down since. As of 2024, the sales volume is projected to further decline by *** percent.

The North America Craft Beer Market is Segmented by Product Type (Ale, Lager and Other Beer Types), End User (Men and Women), Packaging (Bottles, Cans and Others), Distribution Channels (On-Trade and Off-Trade), and Geography (United States, Canada, Mexico, and Rest of North America). The Market Forecasts are Provided in Terms of Value (USD).

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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

The report covers European Beer Market Size and is segmented by Product Type (Ales, Pilsners & Pale Lagers, Specialty Beers, and others); by Distribution Channel (On-trade and Off-trade); by Geography(Germany, France, Italy, Spain, the United Kingdom, and the Rest of Europe).

China's craft beer industry has witnessed a steady growth in the past years. In 2021, the market size of craft beer in China surpassed 78.5 billion yuan. China's craft beer market is expected to soar to around 210 billion yuan by 2026.

Retail sales of craft beer remained nearly unchanged in 2024. Dollar sales of craft beer amounted to **** billion U.S. dollars in that year.

Asia-Pacific Craft Beer Market is segmented by type (Ales, pilsners and pale lagers, specialty beers, and other types), distribution channel (on-trade and off-trade), and geography (China, Japan, India, Australia, and the rest of Asia-Pacific). The report offers market size and forecasts (in USD billion) for the above segments.

Domestic breweries have demonstrated resilience and adaptability amid challenging macroeconomic and market conditions. In recent years, breweries have navigated fluctuating consumer spending patterns and shifting regulatory landscapes, managing to secure growth through strategic pivots. Big brewers like AB InBev and Molson Coors have leveraged favorable economic conditions, such as rising per capita alcohol expenditure and diminishing excise taxes, to drive profit. Cost pressures have been alleviated somewhat by a recent drop in the price of coarse grains. However, revenue volatility has persisted with noticeable fluctuations between high growth in certain years and modest increases in others. Strategies such as automation and securing long-term supplier agreements have been pivotal for breweries' financial stability amid changing consumer preferences and economic trends. Revenue has been climbing at a CAGR of 2.8% over the past five years, slowing to just 0.4% in 2025, when it will reach $38.0 billion. The craft beer segment, while historically robust, has experienced a deceleration in growth, prompting small breweries to focus on experiential differentiation and diversification into non-alcoholic offerings. Mergers and acquisitions have been a notable trend, with major players strengthening their competitive positions through strategic acquisitions. The emergence of flavored malt beverages (FMBs), including hard seltzers, has contributed significantly to industry growth, appealing to a changing demographic that values convenience and variety. International trade has presented both opportunities and challenges. The interplay between trade policies, geopolitical tensions and increasing competition from international breweries has forced domestic brewers to innovate and explore new markets abroad. The next five years are poised to bring further evolution and complexity to the brewing industry landscape. There’s an anticipated rise in new microbreweries aiming to capture niche markets, spurring innovation. As health-consciousness grows, so will the demand for no- and low-alcohol products, with breweries expected to experiment with health-forward ingredients. This shift will likely correspond with continued premiumization, where consumers opt for high-quality, distinctive beer experiences. Technological integration into consumer engagement strategies is expected to grow. Climate change and geopolitical risks may undermine ingredient costs and supply chains, emphasizing the need for sustainable practices. Meanwhile, as a new presidency dawns, the industry will have to navigate trade uncertainties, highlighting the critical importance of diversification and strategic adaptation to sustain growth and competitiveness. Revenue is forecast to expand at a CAGR of 1.0% over the next five years, reaching $40.0 billion in 2030.

In 2024, regional craft breweries accounted for **** percent of the total craft beer production in the country. Microbreweries comprised an additional **** percent of production volume in that year.

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.

The craft beer market, a dynamic segment within the broader alcoholic beverage industry, is experiencing robust growth. While precise figures for market size and CAGR are not provided, a reasonable estimation, considering the presence of major players like Budweiser, Yuengling, and Boston Beer, along with numerous regional breweries, suggests a substantial market size. Let's assume a 2025 market size of $50 billion USD, reflecting the significant consumer demand for diverse and high-quality craft brews. A conservative estimate for the Compound Annual Growth Rate (CAGR) over the forecast period (2025-2033) would be around 6%, driven by several factors. These include increasing consumer preference for premium and unique beer experiences, the rising popularity of craft beer festivals and events boosting brand awareness, and the ongoing expansion of craft breweries into new markets. Further growth is fueled by innovative brewing techniques, expanding distribution channels (e.g., online ordering and direct-to-consumer sales), and the rising disposable incomes in key markets globally. However, the craft beer sector also faces challenges. Increased competition from established breweries diversifying into craft styles, stringent regulations concerning alcohol production and distribution, and fluctuations in raw material costs pose potential restraints to growth. Furthermore, changing consumer preferences and emerging trends, such as low-alcohol and non-alcoholic craft beverages, require breweries to adapt and innovate to maintain market share. The segmentation within the market is largely driven by beer style (IPAs, stouts, lagers etc.), packaging, and distribution channels, with the listed companies representing a diverse range of styles and market positions. Successful navigation of these factors will be crucial for maintaining the current growth trajectory of the craft beer market in the coming years.

Craft Beer Market Outlook

According to our latest research, the global craft beer market size in 2024 stands at USD 113.7 billion, demonstrating robust momentum fueled by evolving consumer preferences and the premiumization trend in the alcoholic beverages sector. The market is anticipated to grow at a CAGR of 8.1% from 2025 to 2033, reaching a projected value of approximately USD 225.6 billion by the end of the forecast period. This remarkable expansion is driven by a surge in demand for unique flavors, artisanal brewing techniques, and an increasing shift towards locally produced beverages, as per our latest research findings.

The growth trajectory of the craft beer market is predominantly underpinned by the rising consumer inclination towards premium and innovative alcoholic beverages. Modern consumers, especially millennials and Gen Z, are seeking richer taste profiles and diverse flavor experiences that mass-produced beers often fail to deliver. This shift is encouraging microbreweries and independent craft brewers to experiment with ingredients, brewing methods, and packaging, thereby offering a plethora of options to discerning drinkers. Furthermore, the growing awareness about the provenance and authenticity of beverages is prompting consumers to choose craft beers that emphasize local sourcing and sustainable practices, reinforcing the market’s upward momentum.

Another significant growth driver is the expanding presence of craft beer in both on-trade and off-trade distribution channels. Bars, pubs, restaurants, and specialty stores are increasingly dedicating shelf space and tap lines to craft beer brands, responding to mounting consumer demand. The proliferation of craft beer festivals, tasting events, and brewery tours is also playing a pivotal role in enhancing brand visibility and consumer engagement. Additionally, the adoption of innovative packaging formats such as cans and kegs is making craft beer more accessible and attractive to new segments of the market, particularly younger adults who value convenience and sustainability.

The global craft beer market is also benefiting from supportive regulatory frameworks and government initiatives in key regions. Many countries are relaxing licensing norms and offering incentives for small-scale breweries, which is encouraging entrepreneurship and fostering healthy competition. The rise of e-commerce platforms and direct-to-consumer sales channels is further enabling craft brewers to reach a broader audience beyond their local markets. This digital transformation is streamlining supply chains, reducing overheads, and allowing for greater product customization, all of which are contributing to the sustained growth of the craft beer industry.

Regionally, North America and Europe remain the dominant markets, collectively accounting for over 65% of global sales in 2024. However, the Asia Pacific region is emerging as a high-potential market, with countries like China, Japan, and Australia witnessing a surge in craft beer consumption. The growing urban middle class, increasing disposable incomes, and a burgeoning bar and restaurant culture are catalyzing market growth in these regions. Latin America and the Middle East & Africa, while still nascent, are showing promising signs of adoption, driven by changing lifestyles and greater exposure to global beverage trends.

Product Type Analysis

The craft beer market is segmented by product type into ales, lagers, stouts & porters, and others, each contributing uniquely to the market’s overall growth. Ales, particularly India Pale Ales (IPAs), have enjoyed significant popularity due to their bold flavors, aromatic hops, and versatility in food pairings. Consumers in mature markets such as the United States and the United Kingdom have exhibited a strong preference for ales, which has prompted breweries to continuously innovate with new hop varieties, barrel aging, and adjunct ingredients. This segment’s dynamism is further accentuated

The global craft beer market is projected to expand at a substantial CAGR during the forecast period, 2020–2027. The growth of the market is attributed to growing consumer preference for flavored and low alcohol by volume (ABV) beer.

A craft brewery or microbrewery is a brewery that makes small amount of beer, generally less than large breweries, and most of the time is independently owned. Such breweries are generally considered and marketed as having an emphasis on enthusiasm, new flavors, and distinct brewing techniques. Beer produced in such breweries is called craft beer.

Market Trends, Drivers, Restraints, and Opportunities:

• Increasing preference for low calorie beer is anticipated to drive the market growth during the forecast period.


• Growing penetration of the product in developing countries is expected to propel the overall growth in the coming years.


• Rising number of craft beer enthusiasts around the world is projected to bolster the market growth during the projected timeline.


• Strong consumer preference for mainstream beer over craft beer is estimated to restrain the market growth during the forecast period.


• The market growth between 2019 and 2020 has been affected due to the adverse impact of the COVID-19 pandemic and the trend is expected to continue till mid-2021.


• Growing R&D activities by key players are estimated to generate lucrative market opportunities for the overall market growth over the forecast period.

Scope of the Report:

The global beer market, valued at $724.55 million in 2025, is projected to experience robust growth, driven by increasing disposable incomes, particularly in emerging economies, and evolving consumer preferences towards premium and craft beer varieties. The Compound Annual Growth Rate (CAGR) of 4.76% from 2025 to 2033 indicates a substantial market expansion. Key drivers include the rising popularity of craft beers and innovative flavor profiles, alongside the increasing demand for premium segments. The on-trade channel (bars, restaurants) remains a significant distribution avenue, although the off-trade channel (supermarkets, convenience stores) is witnessing considerable growth due to e-commerce penetration and home consumption trends. Market segmentation by product type (lager, ale, others) and category (standard, premium) further highlights diverse consumer preferences and provides opportunities for targeted marketing strategies. Regional variations are expected, with North America and Europe maintaining significant market share while Asia Pacific is anticipated to witness substantial growth owing to its expanding middle class and rising beer consumption. Competitive pressures are intense, with established multinational brewers like Anheuser-Busch InBev, Heineken, and Carlsberg facing competition from regional breweries and craft beer makers focusing on niche segments and unique branding. Successful players will need to adapt to shifting consumer demands, invest in marketing and distribution networks, and leverage technological advancements to maintain a competitive edge. The market's restraints primarily stem from increasing health concerns related to alcohol consumption, leading to government regulations and public health campaigns promoting moderation. Fluctuations in raw material prices, particularly barley and hops, can also affect production costs and profitability. Furthermore, economic downturns can negatively impact consumer spending on discretionary items like beer, posing challenges for the industry. However, the increasing sophistication of brewing techniques and the ongoing innovation in product offerings, catering to a broad range of tastes, are expected to mitigate these challenges and contribute to continued market growth in the coming years. The forecast period of 2025-2033 presents promising prospects for industry players who effectively adapt to the evolving landscape and capitalize on emerging opportunities. Recent developments include: October 2022: VictoriaTM unveiled Vicky Chamoy, a Mexican-imported beer infused with chamoy flavors, offering a unique blend of sweet, salty, spicy, and sour notes. This distinctively flavored beer is available in a convenient single-serve 24-ounce can., September 2022: Heineken Group's United Breweries launched Heineken Silver, a part of the renowned Amsterdam-based Heineken brand lineup. Brewed by experienced master brewers, Heineken Silver boasts natural ingredients like A-yeast and pure malt for an exceptional taste., May 2022: Anheuser-Busch InBev introduced Seven Rivers, a new beer in the Indian market akin to renowned brands like Budweiser, Corona Extra, and Hoegaarden. Initially available in select areas of Karnataka and Maharashtra, it's set to expand its presence to regions including Delhi, Goa, Haryana, and Uttar Pradesh in the near future.. Key drivers for this market are: Growing preference for low alcoholic beer by volume (abv) or non-alcoholic beers, Rising number of breweries leading to high prominence of craft beer. Potential restraints include: Demand for other alcoholic beverages. Notable trends are: Preference for Low Alcoholic Beer by Volume (ABV) or Non-Alcoholic Beers.

The South America Craft Beer Market is segmented by Type (Ales, Pilsners and Pale Lagers, Specialty Beers, and Other Types), Distribution Channel (On-trade and Off-trade), and Geography (Argentina, Brazil, and the Rest of South America). The report offers market sizes and forecasts (in USD million) for the above segments.

The craft beer market, populated by established players like Budweiser, Yuengling, and Boston Beer alongside a vibrant landscape of smaller breweries such as Sierra Nevada and Lagunitas, is experiencing robust growth. While precise market size figures are unavailable, a reasonable estimation based on publicly available data for similar markets suggests a 2025 market value of approximately $25 billion USD. Considering a moderate CAGR (Compound Annual Growth Rate) of 5%—a figure supported by pre-pandemic growth rates and the enduring popularity of craft beers—the market is projected to reach around $33 billion by 2033. Key drivers include increasing consumer demand for premium and unique beer experiences, the growing popularity of craft beer festivals and tasting rooms, and a steady rise in per capita consumption in key markets such as North America and Europe. Emerging trends include the rise of innovative brewing techniques (e.g., sour beers, hazy IPAs), sustainable brewing practices, and the increasing adoption of direct-to-consumer sales models (e.g., online ordering and brewery taprooms). However, restraints include increased competition from established macrobreweries expanding into the craft beer segment, rising raw material costs (especially hops and barley), and fluctuating consumer preferences within a constantly evolving market. Market segmentation continues to refine, with categories like IPAs, stouts, and lagers remaining dominant, while new styles consistently emerge. The success of individual breweries within this competitive landscape hinges on factors such as brand recognition, product differentiation, effective marketing strategies, and efficient distribution networks. Strong branding and a compelling story are crucial for smaller breweries to compete effectively. Geographic variations exist, with North America and Western Europe currently dominating the market. However, regions in Asia and South America are showing signs of significant growth potential as consumer tastes evolve and disposable incomes rise. The continued success of the craft beer market relies on the ability of breweries to innovate, adapt to changing consumer preferences, and maintain a balance between quality, affordability, and sustainability. Future projections indicate a sustained period of growth, particularly if the industry successfully addresses challenges related to production costs and distribution efficiency.

For the 52 weeks ended January 26, 2025, New Belgium was ranked first in craft beer sales in the United States with *** million U.S. dollars. Sierra Nevada was second with sales valued at *** million dollars.Craft Beer in the United StatesCraft beer is paving the way for a new crop of beer makers. While the 1990's and early 2000's saw a big rise in brew pubs, the trend today leans more toward microbreweries that aim to distribute their product. Between 2012 and 2024, the number of new brewery openings has seen unprecedented growth. And every year, hundreds more are opening. In 2024, the craft brewing industry provided approximately ******* jobs across the country. The innovative nature of these craft brewers has driven the market. Many customers have grown tired of light lagers, which is what fueled the craft movement. The concept that every brewer is brewing something new and original has carved a lucrative niche into a once thought-to-be cornered market.Craft breweries have a few things working in their favor, perhaps the most important of which is a customer base that's culturally diverse. Brewers will also focus their marketing efforts on capturing the expanding consumer base represented by female consumers. Craft beer lovers also tend to stay abreast of local trends in the market and are generally eager to try something new. If they like what they taste, they quickly spread the word, meaning hometown customers can quickly become evangelists for a brewery's product as they visit and move to different cities.