Beer and Cider Market Outlook

The global beer and cider market is anticipated to reach approximately USD 800 billion by 2035, growing at a remarkable CAGR of around 6% during the forecast period from 2025 to 2035. The demand for craft beers has surged dramatically, driven by a growing trend towards customization and unique flavors among consumers, particularly millennials and Gen Z. Additionally, the increasing preference for premium and artisanal beverages has led to a rise in microbreweries and craft cideries. Furthermore, the growing popularity of hard seltzers and innovative alcoholic beverages has contributed to the expansion of the market. The ongoing global trend of socializing and gathering, particularly in urban areas, continues to fuel the consumption of beer and cider, further bolstering market growth.

Growth Factor of the Market

Several key factors are driving the growth of the beer and cider market globally. The burgeoning interest in craft beers and ciders, known for their unique flavors and artisanal production methods, has captivated consumers seeking new taste experiences. Additionally, health-conscious trends have prompted producers to create low-calorie and gluten-free options, appealing to a broader demographic. The expansion of the e-commerce sector has revolutionized how consumers purchase these beverages, making it easier for them to access a diverse range of products from the comfort of their homes. Geographical expansion, particularly in emerging markets like Asia Pacific and Latin America, is introducing new consumer bases to beer and cider culture. Furthermore, promotional strategies and events, such as beer festivals and tastings, are significantly increasing consumer engagement and participation in the market.

Key Highlights of the Market

• The global beer and cider market is projected to reach USD 800 billion by 2035.
• Craft beers and artisanal ciders are gaining immense popularity among consumers.
• Health-conscious trends have led to the introduction of low-calorie and gluten-free options.
• The rise of e-commerce is transforming the purchasing landscape for beer and cider.
• Expansion into emerging markets is creating new opportunities for market growth.

By Product Type

Beer:

Beer remains the most dominant segment within the market, accounting for a substantial share due to its widespread popularity and variety. The diverse types of beer, including lagers, ales, stouts, and others, cater to an extensive range of consumer preferences. Beer is not just consumed for its taste; it is often a staple in social gatherings, celebrations, and various cultural events around the globe. The craft beer movement, characterized by small-scale production and unique flavors, has significantly influenced consumer choice, leading to an increased interest in specialty and limited-edition brews. The convenience of purchasing beer from various retail outlets, including supermarkets and online platforms, further enhances its market position.

Lager:

Lager is one of the most consumed types of beer globally and is characterized by its crisp and refreshing taste. This segment has witnessed steady growth due to its appeal to a broad audience looking for a light and palatable beverage. Lagers are typically fermented at lower temperatures than ales, leading to a smooth finish that many consumers favor. As beer enthusiasts seek out lighter options, particularly during warmer seasons, the demand for lager continues to rise. Furthermore, the ongoing innovation in flavors and brewing techniques allows for the creation of new lager variants, appealing to adventurous drinkers and traditionalists alike.

Ale:

Ales are known for their rich and robust flavors, typically resulting from the warmer fermentation process used in their production. This product type has seen a resurgence in popularity, particularly with the growing interest in craft brewing. Ales encompass a wide range of styles, from pale ales to IPAs (India Pale Ales) and porters, each offering a unique tasting experience. The craft beer movement has played a crucial role in the revival of ales, as brewers experiment with local ingredients and innovative brewing methods. Ales cater to consumers looking for taste complexity and richness, making them a popular choice in a variety of social settings.

Stout:

Stouts are characterized by their dark color and rich, roasty flavors, often incorporating ingredients such as coffee, chocolate, and caramel. This type of beer has garnered a loyal following, largely due to its unique flavor profiles and creamy mouthfeel. Stouts are particularly popular in colder climates where the rich taste provides comfort and warmth. The emergence of nitro stouts, which are infused with nitrogen for a smoother texture, has further broadened their appeal. With breweries continually experimenting with new flavor combinations, the stout segment is expected to maintain steady growth as consumers explore deeper, more complex tastes.

Pilsner:

Pilsners are a type of pale lager that originated in the Czech Republic and have become a favorite among beer drinkers worldwide. Known for their light, crisp, and slightly bitter flavor, pilsners are particularly appealing in warm weather, making them popular choices at summer gatherings and outdoor events. The segment has shown consistent growth as consumers appreciate the refreshing qualities of pilsners, which make them versatile for pairing with various cuisines. Craft brewers have also jumped on the pilsner trend, producing innovative takes on this classic style, thus expanding its market presence and attracting a diverse consumer base.

Cider:

Cider, made from fermented apple juice, has gained popularity as a gluten-free alternative to beer. The increasing consumer preference for lighter, fruit-based beverages has fueled the growth of this segment. Ciders come in a range of flavors, including traditional cider, spiced varieties, and those infused with berries or other fruits, appealing to a broad audience. The health-conscious demographic, particularly millennials, has embraced cider for its perceived lower calorie content and natural ingredients. The rise of craft cideries has introduced innovative flavors and local, artisanal production methods, further captivating the interest of consumers seeking premium beverage options.

By Application

Alcoholic Beverages:

The alcoholic beverages segment encompasses a significant portion of the beer and cider market. Beer and cider are staples in social gatherings, celebrations, and cultural events, making them integral to the alcoholic beverage category. The growing trend of craft brewing has led to a diversification of offerings, with numerous styles and flavors available to consumers. Additionally, the rise of hard seltzers has introduced competition within this segment, prompting breweries to innovate and expand their product lines. As consumers increasingly seek unique drinking experiences, the alcoholic beverage segment is expected to continue thriving.

Non-Alcoholic Beverages:

The non-alcoholic segment of the beer and cider market has witnessed notable growth, driven by changing consumer preferences and health trends. Many consumers are seeking alternatives to traditional alcoholic beverages for reasons related to health, wellness, or personal choice. Non-alcoholic beers and ciders provide a flavorful option for those who still want to enjoy social settings without the effects of alcohol. The introduction of sophisticated brewing techniques has enabled producers to create high-quality non-alcoholic options that closely mimic their alcoholic counterparts in flavor, further enhancing market appeal. This segment is expected to grow as more consumers adopt healthier lifestyles, particularly among younger demographics.

By Distribution Channel

Supermarkets/Hypermarkets:

Supermarkets and hypermarkets play a crucial role in the distribution of beer and cider, offering consumers a wide range of options in one convenient location. These retail giants often feature extensive beer and cider sections, allowing customers to explore various brands, types, and flavors. The competitive pricing and promotions available in these stores frequently attract consumers, making supermarkets a popular choice for bulk purchases. Furthermore, the convenience of shopping in a one-stop environment supports impulse buying, contributing to overall sales growth within this channel. The direct access to consumers through these large retail spaces is pivotal for brands looking to expand their market presence.

Convenience Stores:

Convenience stores are vital in the distribution landscape of beer and cider, primarily due to their accessibility and extended hours of operation. These stores cater to consumers looking for quick and easy purchases, often stocking popular and ready-to-drink options. The increasing demand for convenience has led to a rise in craft beer offerings in these outlets, allowing customers to access diverse beverage choices at their convenience. Additionally, convenience stores frequently introduce limited-time offers and promotions, which can drive impulse purchases and boost sales significantly. As consumer lifestyle changes, the importance of convenience stores in the beer and cider market is expected to grow.

On-trade:

The on-trade distribution channel, consisting of bars, restaurants, and pubs, plays a significant role in shaping consumer preferences and experiences in the beer and cider market. This channel allows consumers to enjoy their favorite beverages in social settings, enhancing the overall drinking experience. The rising trend of craft beer and cider tastings at establishments has encouraged consumers to explore new flavors and styles. Furthermore, establishments often collaborate with local breweries and cideries to showcase regional products, creating a sense of community and supporting local economies. The on-trade segment is expected to thrive as socializing becomes an integral part of consumer culture.

Off-trade:

The off-trade distribution channel encompasses retail outlets, including supermarkets and liquor stores, where consumers purchase beer and cider for home consumption. This segment has gained traction due to the increasing trend of home entertaining and social gatherings. Consumers are increasingly seeking variety and quality when selecting beverages for home use, leading to a rising demand for craft and premium options. The COVID-19 pandemic also accelerated the shift towards off-trade consumption, as consumers sought to enjoy their favorite drinks in the comfort of their homes. This trend is expected to continue, driving growth in the off-trade segment as consumers opt for convenience and accessibility.

Online Retail:

The online retail channel has revolutionized the way consumers access beer and cider, providing unparalleled convenience and variety. The growth of e-commerce platforms has enabled consumers to explore a vast range of products, including niche and craft offerings, which may not be available in local stores. The ability to compare prices and read reviews has empowered consumers to make informed choices, enhancing their overall experience. Moreover, the COVID-19 pandemic has accelerated the adoption of online purchasing, as many consumers turned to e-commerce for their beverage needs. As technology continues to evolve, the online retail segment is expected to witness sustained growth, reshaping the landscape of beer and cider consumption.

By Ingredient Type

Barley:

Barley is one of the primary ingredients used in brewing beer, contributing to its flavor, color, and body. The versatility of barley allows brewers to create a wide range of beer styles, from light lagers to rich stouts. The demand for malted barley is closely tied to the overall growth of the beer market, as it is essential for the fermentation process. With the increasing interest in craft brewing, there has also been a rise in the use of specialty malts, which can impart unique flavors and characteristics to the final product. As consumer preferences continue to evolve, the demand for various malted barley types is expected to remain strong.

Hops:

Hops are another critical ingredient in beer production, providing bitterness, aroma, and flavor. The growing popularity of hoppy beer styles, such as IPAs, has led to a surge in demand for various hop varieties. Craft brewers are increasingly experimenting with different hop combinations to create innovative and unique flavor profiles, which has captivated consumers seeking out new experiences. The expansion of hop farms and cultivation practices worldwide has facilitated a steady supply of high-quality hops, supporting the growth of the beer market. As new trends emerge, the demand for hops is likely to remain robust, bolstering their significance in the brewing process.

Yeast:

Yeast is a vital ingredient in both beer and cider production, responsible for fermentation and the transformation of sugars into alcohol. The choice of yeast strain can have a profound impact on the flavor and aroma of the final product, influencing everything from fruity esters in ales to crisp clean profiles in lagers. With the increasing interest in craft brewing, many breweries are exploring different yeast strains, including wild and mixed fermentation techniques, to create unique flavor experiences. The rising trend of sour beers and experimental brews has further highlighted the importance of yeast in the brewing process, ensuring its continued relevance in the beer and cider market.

Apples:

Apples are the primary ingredient in cider production, providing natural sugars that undergo fermentation to create this beloved beverage. The variety of apples used in cider-making significantly affects the taste profile, with different types imparting unique flavors ranging from sweet to tart. As consumer interest in craft cider has surged, many cideries are focusing on heritage apple varieties and local sourcing, which can enhance the quality and uniqueness of their products. Additionally, the increasing popularity of flavored ciders, incorporating other fruits or spices, is expanding the market for apple-based beverages, making them an essential segment within the overall beer and cider landscape.

Berries:

Berries are becoming an increasingly popular ingredient in both beer and cider production, adding a burst of flavor and color to the beverages. Various berries, such as raspberries, blueberries, and blackberries, are used to enhance the natural sweetness and tartness of the drinks. The incorporation of berries allows producers to create unique blends that cater to consumer preferences for refreshing and fruity options. The growing trend of fruit-infused beverages has opened up new avenues for innovation in the beer and cider market, appealing to a diverse range of consumers looking for exciting and palatable choices.

By Region

The beer and cider market displays significant regional variations in consumption patterns, preferences, and growth potential. In North America, the market is projected to reach approximately USD 200 billion by 2035, with a CAGR of around 5% during the forecast period. The craft beer movement has revolutionized the regional landscape, with a growing number of microbreweries contributing to diverse offerings that appeal to consumers seeking unique flavors and experiences. In Europe, the market is similarly robust, with its rich beer culture and historical significance driving consistent demand. The European beer market, valued at around USD 250 billion, is expected to witness steady growth fueled by ongoing innovation in brewing techniques and product offerings.

Asia Pacific is emerging as a rapidly growing region for the beer and cider market, anticipated to reach USD 150 billion by 2035. The increasing urbanization, rising disposable incomes, and changing consumer preferences are driving the consumption of beer and cider in countries like China and India. The market is expanding as more consumers embrace alcoholic beverages as part of social gatherings and celebrations. Latin America and the Middle East & Africa are also showing potential for growth, although they currently represent a smaller share of the global market. As these regions continue to develop economically, the beer and cider market is expected to expand, providing opportunities for both local and international producers.

Opportunities

The beer and cider market presents numerous opportunities for growth and expansion, particularly within the craft beverage segment. The increasing consumer demand for unique and locally sourced products has prompted many small-scale breweries and cideries to enter the market, creating a rich diversity of offerings. As consumers seek out authentic and artisanal beverages, there is potential for existing brands to innovate and expand their product lines. Additionally, the rise of e-commerce platforms has opened up new avenues for distribution, allowing producers to reach wider audiences and tap into niche markets. By leveraging online sales, breweries and cideries can engage with consumers directly, enhancing brand loyalty and fostering community connections. Furthermore, the growing trend of health-conscious drinking creates an opportunity for beverage producers to develop low-alcohol or non-alcoholic options that appeal to consumers seeking healthier alternatives.

Another significant opportunity lies in the exploration of international markets and collaborations. As the beer and cider landscape becomes increasingly globalized, opportunities for export and partnership with local producers can lead to innovative product development and shared expertise. Moreover, the rising trend of sustainability in the beverage industry presents a chance for breweries and cideries to adopt eco-friendly practices in their production processes, appealing to environmentally conscious consumers. Investing in sustainable sourcing, packaging, and production methods can enhance brand reputation and attract a loyal customer base. As the global market continues to evolve, businesses that can adapt and seize these opportunities are likely to thrive in the competitive beer and cider landscape.

Threats

Despite the promising growth prospects, the beer and cider market faces several threats that could impact its trajectory. One of the primary challenges is the increasing regulation within the alcohol beverage industry, which can vary significantly by region and may impose restrictions on marketing, distribution, and sales. Stringent regulations can stifle innovation and limit market access for smaller producers who may struggle to navigate complex legal frameworks. Additionally, the growing concern over health issues related to excessive alcohol consumption may lead to declining sales, particularly among younger consumers who are increasingly opting for healthier lifestyle choices and low-alcohol alternatives. As more consumers prioritize health and wellness, traditional beer and cider consumption could be adversely affected, necessitating a strategic shift for producers.

Furthermore, economic fluctuations and rising raw material prices can pose additional challenges for the beer and cider market. Producers may face challenges in sourcing key ingredients such as barley, hops, and apples, leading to increased production costs that can be passed on to consumers. This could result in reduced sales, particularly if consumers are unwilling to pay higher prices for their favorite beverages. Competitive pressure from other beverage segments, such as hard seltzers and flavored spirits, may also pose a threat as these alternatives capture market share among consumers looking for diverse and new drinking experiences. To remain competitive, the beer and cider industry must focus on innovation, quality, and adapting to shifting consumer preferences.

Competitor Outlook

• Anheuser-Busch InBev
• Heineken N.V.
• Constellation Brands, Inc.
• Molson Coors Beverage Company
• Diageo PLC
• Carlton & United Breweries
• Asahi Group Holdings, Ltd.
• Carlsberg Group
• Boston Beer Company
• New Belgium Brewing Company
• Samuel Adams
• Sierra Nevada Brewing Co.
• Angry Orchard Cider Company
• Magners Irish Cider
• Woodchuck Hard Cider

The competitive landscape of the beer and cider market is characterized by the presence of several large multinational corporations and numerous craft breweries, creating a dynamic and diverse environment. Major players, such as Anheuser-Busch InBev and Heineken N.V., command significant market share and have extensive distribution networks, allowing them to dominate the traditional beverage market. However, the rise of craft breweries has transformed the landscape, with many small-scale producers gaining popularity by emphasizing quality, local sourcing, and unique flavor profiles. This trend has introduced competition that challenges larger corporations to innovate and adapt to changing consumer preferences.

In the craft segment, companies like Boston Beer Company and New Belgium Brewing Company have carved out significant market shares by focusing on creativity and consumer engagement. These breweries often lead the way with trends, launching new styles and limited editions that resonate with a growing demographic of craft beer enthusiasts. Moreover, cider producers such as Angry Orchard and Magners have successfully tapped into the expanding cider market, offering a variety of flavors that attract both new drinkers and traditional cider fans. The evolving landscape demands that all competitors remain agile, responding to shifts in consumer behavior and preferences.

As the market expands, companies are increasingly investing in marketing strategies that emphasize social responsibility and sustainability, aiming to appeal to a more conscientious consumer base. Collaborations between established brands and emerging craft breweries are also becoming more common, allowing for shared resources and innovation. Additionally, leveraging digital marketing and e-commerce platforms has become essential for all players to reach consumers effectively. Overall, the competitive outlook of the beer and cider market is complex and multifaceted, requiring businesses to navigate a myriad of challenges while focusing on quality, innovation, and consumer engagement.