Market Trends of Europe Beer Industry
Increasing Demand for Alcoholic Beverages
The rising demand for alcoholic beverages is driving the growth of the European beer market. Europeans have sophisticated palates, which results in the demand for high-quality beverages. The demand for beer is prominent in the market studied, and the drink caters to the surging demand for alcoholic beverages. The changing lifestyle of consumers and high disposable incomes have increased the demand for beer. The rise in beer consumption is mostly associated with the trend growing among youngsters. Moreover, government guidelines add weight to the sales of alcoholic beverages. Consumers in the United Kingdom are opting for high-quality, high-volume convenience beer. According to the Office of the National Statistics (UK), consumer spending on beer in the United Kingdom stood at GBP 6,423 million in 2022. Lager, pale ale, and bitter are becoming increasingly popular with consumers. Indian Pale Ale (IPA) is loved by consumers. It is enhanced with floral and fruity hop varieties added to appeal to modern taste.
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 flavors. The rising number of breweries also contributes to the growth of the market studied. For instance, according to the UHY Hacker Young, there were approximately 2,426 breweries in the United Kingdom in 2022. The major players across the region are mainly focusing on innovative product launches and expansions. For instance, in November 2022, Beerwulf, an online beer retailer owned by Heineken, launched its marketplace in the Netherlands, wherein third-party retailers can also launch their products. The platform offers products from small breweries and established retailers.
Rise of Distribution Through Off-trade Channels
The off-trade distribution channel adds to the increasing beer sales in the European market. The off-trade channel consists of supermarkets/hypermarkets, online retail, and other mediums that have generated a major portion of beer sales in recent times. These segments are growing year after year at a faster pace, owing to the wide variety of options available to consumers. The added convenience and price gap in comparison to on-trade channels have added to the demand further. The organized shelves of supermarkets/hypermarkets aid consumer convenience in buying beer in the European region. The wide range of products available, coupled with well-informed staff, is adding value to the cause.
Furthermore, people are more interested in consuming beer at home, which further adds to the surging sales through off-trade channels. The major players in the market are also catering to these channels to increase their sales. Customers are shifting the way they shop and prefer online channels more. Heineken boosted its investment in e-commerce with a focus on its Beerwulf, GLUP, and Drinkies platforms to adapt to these changing consumer behaviors. The momentum during on-trade closures and the successful sales of the Blade, a beer tap for home use, and small retail establishments that provide high-quality draught beer in 8-liter brewery-fresh containers have been key drivers of growth for Beerwulf. Breweries are looking for brand collaborations to create crossover audiences and attract drinkers and media attention. For instance, in February 2022, Molson Coors launched Madri lager into grocery stores and supermarkets in the United Kingdom to enhance its share in the off-trade beer category. Similarly, in November 2021, Asda became the first UK supermarket to launch a draught beer concept.
