Craft beer market in Europe to grow 11% from 2017-2021

Good news for European craft business and American craft brewers: Technavio, market researchers that explore more than 5,000 industries, forecasts the craft beer market in Europe will grow at a CAGR of more than 11 percent during the forecasted period, according to their latest report. The market study covers the present scenario and growth prospects of the craft beer market in Europe for 2017 to 2021. The report also lists eight different variants of craft beer, which includes Indian pale ale (IPA), amber ale, lager, bocks, wheat, fruit beer, seasonal and pale ale. The global craft beer market is primarily concentrated in the Americas and Europe, with the United States being the largest craft beer producer, followed by the United Kingdom.

“Rising popularity of craft beer, increasing disposable incomes of consumers in Eastern European economies and growing awareness about the health benefits of consuming beer are major drivers that will impact the growth of the beer market in Europe during the forecast period,” explained Manjunath Reddy, a lead analyst at Technavio for alcoholic beverages research.

This report is available at a $1,000 discount for a limited time only: View a market snapshot. Technavio analysts highlight the following three market drivers that are contributing to the growth of the craft beer market in Europe:

Packaging and labeling innovations
Rising number of microbreweries in Europe
Increasing M&As of small breweries by global beer vendors
Packaging and labeling innovations

With the number of microbreweries and other distribution channels increasing exponentially in Europe, it has become imperative for vendors to differentiate their products from those of their competitors. The most important parameters for product differentiation are the application of innovative packaging techniques and attractive labeling. The two most popular types of packaging variants are bottles and cans, with bottles being the dominating packaging variant. However, in recent years, the popularity of cans has increased, and many consumers have shown an inclination toward using cans.

Rising number of microbreweries in Europe

Europe has witnessed a significant growth in the number of microbreweries operating in the region in the last five years. The number of microbreweries grew by nearly 73 percent in the last five years. A microbrewery is defined as a brewery that produces only limited quantities of beer, primarily specialty beer, and craft beers. The United Kingdom and Germany have the most number of microbreweries in Europe.

With the rising number of microbreweries in the region, the competition in the craft beer market in Europe has intensified over the years. This has proved to be beneficial for consumers in terms of quality, price and flavors. In 2015, Europe had 5,830 microbreweries operating in the region.

Increasing mergers and acquisitions of small breweries by global beer vendors

Europe’s microbreweries and craft breweries are continuing to fuel the craft beer revolution in bars, pubs and liquor stores across the region. With 5,830 microbreweries and 4,486 regional craft breweries in 2015, craft beer now represents close to 12 percent of the beer market in Europe in terms of revenue.

“The growth of the market for craft beer has also brought down the sales volumes of conventional beers in the region. This has forced many global vendors in the beer industry to acquire small craft brewing companies to enter the craft beer market,” said Manjunath.