Watch Out For These 2023 Beer Market Trends And Insights
Beer is the largest section of the global alcoholic beverage market, by volume and value. With at-home and away-from-home consumption increasing at nearly the same rate, revenues are primarily driven by an upsurge in volume consumption and the market’s continued premiumization.
This expansion is also anticipated to be driven by factors like rising disposable income, shifting consumer preferences, and the introduction of new competitors. The recent efforts by the Indian government to encourage tourism and the hospitality sector are also anticipated to increase demand for beer in the nation.
According to the report by Statista, out-of-home consumption will account for 24% of spending and 16% of volume consumption by 2027. (e.g., in bars and restaurants). The Volume in the Beer category is predicted to reach 5.81 billion L by 2027. In 2023, the average volume per person in the beer sector is expected to be 3.39L. In 2024, the Beer segment is predicted to rise by 5.1% in terms of volume.
Based on current trends and projections, keep an eye on some of these potential beer market trends for 2023:
– Craft beer popularity and demand is anticipated to expand further, as consumers seek for innovative and flavorful beer options.
– More and more consumers are becoming health-conscious, the trend towards lower-calorie and non-alcoholic beer products is projected to continue.
– Breweries will continue to employ sustainable practices in their production process and packaging as sustainability is becoming increasingly crucial for consumers, making brewers adapt to incorporating eco-friendly practices such as recycling waste, lowering water usage, and using renewable energy sources.
– As customers get more comfortable with e-commerce and virtual experiences, beer companies are adopting digital marketing tactics to interact with consumers and promote their products, thanks to the advent of social media and e-commerce. Online beer tastings, virtual brewery tours, Influencer marketing are all examples of this.
– Beer businesses will continue exploring possibilities for entry into rising markets such as India and other Asian countries, where there is substantial room for expansion.
– Today, consumers are becoming more interested in locally sourced and produced beer, which is fueling a growing trend of breweries focusing on regional flavours and ingredients.
– Customers are willing to spend more for premium beer options that provide distinct flavours, high-quality ingredients, and an elevated drinking experience. As a result, premium beer sectors such as imported and craft beer have grown in popularity.
Furthermore, the decrease in selling and distribution costs in India also contributes to the industry’s growth. Product and packaging innovation is also likely to fuel market expansion in India. Customers are drawn to canned beer, draught beer, and craft beer. Canned beer is gaining popularity due to its ease of handling and transit from one location to another. Additionally, the popularity of freshly produced, on-tap beer is increasing. Over the last few years, there has been a developing trend of brewpubs in key cities such as Bengaluru, Gurgaon, and Pune, which has provided further momentum for the beer market expansion in India.
However, market expansion was significantly hampered with the emergence of the COVID-19 pandemic due to the first ban on the sale of alcoholic beverages and duty hikes that resulted in a spike in beer costs. While the epidemic has hindered market development, it has also opened the door to new inventions and the expansion of distribution networks.
Overall, the beer market is an ever-changing and continuously expanding industry, with a variety of trends and factors influencing consumer tastes and behaviour.