Europe Craft Beer Market-Growth, Trends, and Forecast (2022 - 2027)

Europe Craft Beer Market is projected to register a CAGR of 8.62% during the forecast period, 2022-2027.

According to Brewers-of-Europe statistics, the removal of alcoholic drinks from takeaway limits had an influence on the European craft beer industry during the COVID period. Government COVID-19 regulations adopted in 2020 have had a significant impact on bars and restaurants, removing 42% of beer hospitality sales volumes in Europe.

Over the medium term, Manufacturers' efforts in establishing new breweries, expenditures in creating new products, a rise in disposable income across Europe, and other factors will drive the market substantially in the projected period.

The number of microbreweries and craft breweries has increased significantly in the previous five years, according to data from European brewers. The industry is experiencing innovative product releases from brewers; these product innovations are increasing the market, as customers are drawn to unique tastes and tastes. Furthermore, the market is fueled by the region's emerging economies such as Croatia, Romania, Serbia, and others. People's disposable income is rising in these developing nations, and consumption of low-alcohol content craft brews is expanding rapidly.

Italy, France, the United Kingdom, Germany, Switzerland, the Netherlands, Belgium, and Spain are the most attractive markets for European craft beer brewers. In the forecast period (2022-2027), these countries will fuel the Europe Craft beer Market.

Key Market Trends

Rising Number of Microbreweries

Craft beer has become extremely popular among young consumers. Craft beer allows customers to explore a wide range of beer types and flavor characteristics. There is a growing trend for low alcohol by volume drinks, and sales of no-alcohol or low-alcohol beers have increased as a result of increased interest from health-conscious customers, as well as a greater selection of new varieties with superior flavor.

The entry of macro-breweries into the craft beer market has resulted from a shift in customer desire toward flavor variety and flavors. The active engagement of macro brewers is helping the expansion of the craft beer sector. As per the report data from the Brewers of Europe report 2020, the number of microbreweries has seen an unprecedented increase from merely 1,992 in 2008 to more than 9,500 in 2020 and continues to grow. The European region has witnessed an increase in the number of active microbreweries in France, the United Kingdom, Germany, Italy, and Spain among others.

These new brewers have been driving the exports that first led to the stabilization, and then the incremental growth in the European craft beer industry. With more and more microbreweries participating, the market has been witnessing an intense competition among these brewers in terms of product innovation and differentiation by means of flavors, packaging, price, and producing techniques.

Germany leads the Beer Production and Consumption

Germany has arguably the oldest continuous brewing culture in the world. The traditional German brewing landscape remains highly fragmented compared to other beer markets which have seen consolidation through industry players early on. In 2020, as per the European Beer Trends Statistics Report, beer production in Germany was 87,027 (in 1000 HL).

Craft beer is gaining popularity among the men and the youth of the region, and it is anticipated that the youth population in Germany will be responsible for the increase in the market share of craft beer. Product innovation in the beer industry is at an all-time high and is witnessing an increased demand for various beer products and shifting global taste preferences. Additionally, small independent local breweries specializing in exclusive and imaginative handcrafted brews that are local, sustainable, and innovative have emerged in the German craft beer market in recent years. These characteristics distinguish them from their competitors in the industry.

Competitive Landscape

The Craft beer market in Europe is fragmented; among the leading players in the sector include Brewdog Plc, Heineken Nv, Molson Coors Beverage Company, Anheuser-Busch Inbev, And Stone Brewing Co.

In 2022, BrewBilt Manufacturing Inc., for example, announced that it is bringing BrewBilt equipment and craft beer to Europe, starting with a 10 BBL brewhouse and 20 BBL cellar tanks for Mad Finn Brewing Company in Finland. This is just one example of how more companies are entering the emerging Europe Craft Beer market. The sector is quite competitive due to the presence of many national and local businesses. Local brewers supply a major portion of the craft beer market. With their significant product improvements in terms of flavors, packaging, and alcohol content, both global and regional firms have accommodated the growing customer demand for the product.

In the forecast period (2022-2027), it is anticipated that the market will be highly competitive, global manufacturers have to compete with the local brewers, also, there will be high competition among players based on product innovation and packaging.

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