Beer Market - Growth, Trends, COVID-19 Impact, and Forecasts (2021 - 2026)

There has been a consistent growth in preference for low alcohol by volume beverages and the sales of no-alcohol and low-alcohol beers have been rising with the growing interest from health-conscious consumers and a wider choice of new ranges with improved taste. Another driving factor is that the low-alcohol beers are now cheaper than their high alcoholic equivalents, for those of 2.8% ABV and less. The cost reduction would drive the market for low-alcohol alcohols such as craft beer. The scenario is much prominent in European countries like Sweden where brewers are seeking to bring changes to the craft beer market.

The rapid expansion of breweries in the United States has contributed to an increase in growth of beer in the market across the region. According Brewers Association, in the United States, there were around 7,450 breweries in 2018 and the number of breweries witnessed growth rate of 12.9% from the time period 2014-2018. Most of the breweries in the United States have introduced their own and unique beers. This has given customers an increased opportunity to try new beer flavors. Flavors set a beer apart from one another and act as a point of differentiation for the consumers. The millennial, one of the largest demographics in the US population, is a targeted segment of breweries. The increasing preference of millennials for flavored beers has resulted in breweries adopting and incorporating newer flavors in their beer offerings. For instance, Constellation Brands introduced passionfruit lime, guava lime, and coconut lime under the brand Corona Refresca especially to target millennial in the United States