Europe Beer Market growth rate (CAGR) of 1.8% from 2018 to 2025 | Asahi Group Holdings Ltd, Budweiser Budvar Brewery, Erdinger Brewery, Kirin Holdings Co. Ltd, Lasco Brewery

As per a recent report titled "Opportunity Analysis and Industry Forecast, 2018 - 2025," by Allied Market Research, the European beer market had a value of $138,649 million in 2017 and is anticipated to reach $159,687 million by 2025. This represents a compound annual growth rate (CAGR) of 1.8% from 2018 to 2025. Beer stands as the most widely consumed alcoholic beverage globally, typically containing 4% to 6% alcohol by volume.

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In 2018, Germany and the UK collectively accounted for more than one-third of the Europe beer market share, registering a lucrative CAGR and is anticipated to retain their position in the market in 2025. This is attributed to the significant growth of micro-breweries in these regions.

Major companies profiled in the Europe beer market report include Anheuser-Busch InBev, Beijing Yanjing Brewery, Boston Beer Company, Carlsberg Group, Dogfish Head Craft Brewery, Diageo PLC, Heineken N.V., Sierra Nevada Brewing Co., Squatters Pub, and United Breweries Group.

The other players in the Europe beer market value chain include Asahi Group Holdings Ltd, Budweiser Budvar Brewery, Erdinger Brewery, Kirin Holdings Co. Ltd, Lasco Brewery, New Belgium Brewing Company Inc., Oettinger Brewery, Radeberger Brewery, SABMiller PLC, Scottish & Newcastle, and Stone and Wood Brewing Co.

Its primary components comprise malted cereal grains, water, brewer's yeast, and flavoring agents like hops, which facilitate fermentation and contribute bitterness while acting as a natural preservative. Glass bottles and cans are the predominant packaging choices for most beer products. Moderate beer consumption has been associated with reduced risks of cardiac disease, stroke, and cognitive decline, but excessive consumption raises the likelihood of liver diseases. The European beer market has steadily expanded in recent years, driven by innovations in flavors and an expanding consumer base.

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The most vital factor impacting the demand for beer is its health benefits. It is known to keep the kidneys healthy, cure insomnia, and reduce cholesterol level, thus boosting the demand for beer. The soluble fiber present in lager beer helps in digestion and lowers the chances of intestinal transit. In addition, beer aids in enhancing bone density and strengthening the bones due to the presence of high silicon content in it. Apart from this, increase in disposable income, surge in consumer preferences for beer over other alcoholic beverages, rise in female drinkers, and inclination of the younger generation toward non- or low-alcoholic beverages fuel the growth of the Europe beer market. Rise in the number of restaurants and bars has resulted in greater consumption of these beverages, as people increasingly prefer on premise drinking as opposed to off premise drinking.

However, easy availability of other substitutes of beer is the biggest challenge for the overall market growth. In addition, taxations and higher excise duties on imported as well as local beer and increase in health awareness among consumers hamper the growth of Europe beer industry. Developing naturally sweetened, healthier alcoholic drinks, and rise in number of craft beer enthusiasts are the opportunities that are expected to propel the growth of the market in future.

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Key Findings of the Europe Beer Market:

Based on type, the lager segment was the highest contributor to the Europe beer market that accounted for about 44% of the total market share and is projected to witness the highest CAGR in terms of revenue during the forecast period.

UK is expected to be the dominant shareholder of beer market in Europe 2025, due to affluent demand for beer and its variants.

Based on packaging, the glass segment occupied the highest market with more than half the Europe beer market share in 2018, and is expected to grow at a decent CAGR of 1.5% during the forecast period.

Based on pricing type, the premium segment is expected to lead in terms of demand for beer with a lucrative CAGR of 1.8% in the forecast period.

By production, micro-breweries are anticipated to be the highest growing segment in the Europe beer market at a lucrative CAGR of 1.9% from 2018 to 2025.

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