Global Beer and Cider Market Outlook to 2030

Global Beer and Cider Market Overview

• The global beer and cider market is valued at approximately USD 106.67 billion, driven by increased consumer demand for a diverse range of alcoholic beverages. This growth is primarily fueled by the rising popularity of craft beer and premium cider products, alongside a growing preference for healthier, gluten-free alcoholic beverages like cider. The introduction of non-alcoholic and low-alcohol variants of beer and cider, as well as their expanding availability across both on-trade (bars, pubs, restaurants) and off-trade (retail, supermarkets, e-commerce) channels, has further driven market expansion.
• In terms of market dominance, Europe and North America lead the global beer and cider market. Key countries like Germany, the United States, and the United Kingdom play dominant roles, owing to their deeply ingrained beer and cider cultures, alongside high levels of product innovation. In these regions, consumers have shown a significant shift towards premium and craft categories, while emerging markets like China and Brazil are experiencing rapid growth due to rising disposable incomes and an expanding middle class, leading to increased alcohol consumption.
• Governments in various regions have been promoting local production through subsidies and grants to boost the beer and cider market. For example, the U.S. governments Craft Beverage Modernization and Tax Reform Act provided tax breaks for small-scale breweries and cider producers, lowering federal excise taxes for producers who manufacture less than 2 million barrels annually. In Australia, the government offers a Wine Equalisation Tax Rebate for cider producers, encouraging small and regional manufacturers to scale up production. This has bolstered the local craft beer and cider industries.

Global Beer and Cider Market Segmentation

By Product Type: The beer and cider market is segmented by product type into beer and cider. Beer includes various subtypes such as lager, ale, stout, pilsner, and specialty beers, while cider is categorized into dry cider, sweet cider, sparkling cider, still cider, and other niche products. Among these, beer, particularly lager, holds the dominant market share due to its longstanding presence and affordability, making it a popular choice among consumers globally. The extensive marketing strategies of large corporations like Anheuser-Busch InBev and Heineken have also helped maintain lagers dominance, especially in developing markets.

By Region: The beer and cider market is segmented by region into North America, Europe, Asia-Pacific, Latin America, and the Middle East & Africa. Each region shows unique trends in beer and cider consumption due to cultural, economic, and regulatory differences. Europe dominates the global market owing to its rich brewing history, diverse beer and cider traditions, and the high popularity of premium and craft beers. The growing trend toward premiumization and sustainability has particularly influenced beer consumption in countries like Germany, the UK, and Belgium. Meanwhile, Asia-Pacific is witnessing significant growth, driven by expanding middle-class populations and increasing disposable incomes, especially in China and India. These markets are also showing an increasing preference for Western-style beverages like craft beer and flavored ciders.

Global Beer and Cider Market Competitive Landscape

The global beer and cider market is characterized by a few major players that dominate through global operations, extensive distribution networks, and strong brand portfolios. The presence of local breweries and small craft beer companies, particularly in regions like Europe and North America, adds to the competitive intensity of the market. Large players like Anheuser-Busch InBev and Heineken N.V. are focusing on premiumization, sustainability initiatives, and expanding their portfolio to include low-alcohol and non-alcoholic beers to capture the shifting consumer preferences.

Global Beer and Cider Market Analysis

Market Growth Drivers

• Increasing Global Beer Consumption (Volume & Per Capita): Global beer consumption has been steadily increasing, supported by rising disposable incomes and urbanization. In 2023, global beer consumption stood at approximately 188 million kiloliters, driven by demand from emerging economies like China and Brazil. In China alone, per capita beer consumption reached 34 liters in 2023, making it one of the highest consumers of beer globally. Similarly, Latin America, with Brazil at the forefront, witnessed a per capita consumption of 62 liters. This growth aligns with increasing urbanization, where more than 4.4 billion people lived in urban areas in 2022.
• Shift Towards Premium and Craft Beers (Value Addition, Category Expansion): The shift towards premium and craft beers has become a defining trend, with consumers increasingly seeking unique flavors and artisanal products. In the U.S., craft beer production rose to 24 million barrels in 2023, fueled by a consumer focus on quality and authenticity. Premium beer consumption has also grown significantly in regions like Europe, driven by rising income levels and a consumer desire for higher-value products. The expansion of premium and craft beer categories is further supported by the global GDP reaching $104 trillion in 2023, encouraging spending on luxury and niche beverages.
• Growing Popularity of Cider (Health Trends, Gluten-Free Appeal): Cider is becoming increasingly popular due to its health benefits and gluten-free appeal. In the UK, cider consumption reached a total of 600 million liters in 2023, driven by health-conscious consumers opting for gluten-free alternatives. In Australia, the cider market saw a significant rise in demand as consumers prioritized healthier and more natural beverages. This trend is supported by the growing awareness of gluten intolerance, which affects millions of people globally. The increasing focus on health-conscious choices is boosting cider demand, especially among consumers looking for low-calorie or gluten-free options.

Market Challenges:

• Regulatory Barriers (Alcohol Taxation, Labeling Laws, Import Restrictions): Regulatory barriers remain a significant challenge for the beer and cider market. Countries like India impose high alcohol taxes, with some states implementing exceptionally high rates in 2023, which has hindered market growth. Additionally, strict labeling laws in the European Union, requiring detailed ingredient transparency and health warnings, have increased production costs for manufacturers. Import restrictions in regions such as the Middle East, where alcohol sales are tightly controlled, further impact trade. In 2023, tariffs on imported alcohol in the Gulf Cooperation Council (GCC) created significant obstacles for exporters, limiting market access.
• Rising Raw Material Prices (Barley, Hops, Sugar): The rising prices of raw materials like barley, hops, and sugar have directly impacted the production costs of beer and cider. Global barley prices surged to $275 per ton in 2023, largely due to climate-related disruptions in major producing regions like Ukraine and Canada. Hops prices also increased to $5.50 per pound in 2023, driven by supply shortages. Additionally, sugar, a key ingredient in cider production, saw price hikes to $0.44 per kilogram in 2023, further squeezing profit margins for manufacturers.

Global Beer and Cider Market Future Outlook

Over the next five years, the global beer and cider market is projected to experience steady growth driven by the rising consumer demand for premium and craft beverages, coupled with the introduction of healthier options like low- and no-alcohol beers. The surge in e-commerce platforms for alcohol sales, as well as increasing environmental consciousness leading to more sustainable brewing practices, are expected to further enhance the markets expansion. Additionally, growing disposable incomes in emerging economies will contribute to higher demand for premium and craft beers.

Market Opportunities:

• Expansion in Emerging Markets (Latin America, Asia-Pacific): Emerging markets like Latin America and Asia-Pacific present significant opportunities for the beer and cider market. In 2023, beer consumption in Latin America reached 17 billion liters, with Brazil accounting for 10 billion liters. Asia-Pacific, led by countries like India and Vietnam, also saw substantial growth, with Indias beer market expanding to 6 billion liters in 2023. These regions are experiencing rapid urbanization and a growing middle class, with Asias middle-class population estimated to reach 1.4 billion by 2023, driving demand for alcoholic beverages.
• Rise of Premiumization (Artisanal Brews, Regional Specialties): Premiumization is becoming increasingly important in the beer and cider market, with a growing demand for artisanal brews and regional specialties. In 2023, artisanal beer production in Europe reached 12 million hectoliters, reflecting the rising consumer interest in unique, high-quality products. Regional specialties, particularly in countries like Belgium and Germany, have seen a resurgence, with local breweries reporting increased sales by 5 million liters. This trend is driven by consumers seeking authentic, locally-sourced beverages, supported by rising global disposable incomes, which hit $8.5 trillion in 2023.