Market Trends of Europe Craft Beer Industry
This section covers the major market trends shaping the Europe Craft Beer Market according to our research experts:
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.
