Europe Beer Market: Domestic Brands to Capitalize on Emerging Opportunities in Eastern Europe, notes TMR

Leading players operating in the Europe beer market include Anheuser-Busch InBev SA/NV, Diageo plc., SAB Miller plc., Carlsberg Group, and Heineken N.V. Leading players are actively making acquisitions, partnerships, and product innovations to gain a competitive edge in the market, notes Transparency Market Research (TMR). The Europe beer market is characterized by intense rivalry among players and several major companies face stiff competition from local players in the regional markets. With a spurt in the number of regional players over the past few years, the competition in the marketplace is expected to intensify further, observes TMR.

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The estimated valuation of the Europe beer market in 2016 was US$139.24 bn and is anticipated to surge to US$160.99 bn by 2021. In terms of revenue, the market is poised to rise at a CAGR of 2.90% during 2015-2021.

Germany to Offer Lucrative Market Avenues in Coming Years

On the basis of country, the Europe beer market is segmented into Germany, the U.K., Italy, Spain, and France. Among these, Germany held the leading market share in the market in 2014 and is expected to lead the market throughout the forecast period. The beer market in Germany is projected to occupy a share of 25.2% by 2021. Germany is the leading exporter and consumer of beer and the stellar demand for beer is mainly driven its soaring popularity and rising disposable incomes of consumers.

Based on product, the Europe beer market is segmented into stout beer, lager beer, and ale beer; of these, lager beer accounted for the dominant share in 2014. Lager forms the most preferred type of beer consumed in Europe and is projected to reach a valuation of US$20.05 bn by 2021. The wide popularity of lager beer is attributed to its significant nutritional benefits and moderate calorie content.

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Numerous Health Benefits to Bolster Demand

The substantial demand for beer in Europe is driven by numerous health benefits, mainly in reducing intestinal disorders such as constipation and diarrhea and in facilitating digestion. The rise in disposable incomes amongst consumers has boosted the market. Consumption of beer in moderate quantities reduces the risk of cardiovascular diseases and significantly alleviates the risk of developing kidney stones. Furthermore, beer has been found to be useful in curing insomnia and its consumption also leads to stronger bones.

The prominence of beer over other alcoholic drinks is driven by cost and the large presence of domestic brands. This is expected to unlock promising opportunities for market players. However, the availability of substitutes, internal as well as external, such as various other alcoholic drinks and carbonated and non-carbonated beverages is expected to impede the growth of the market to an extent. Furthermore, the seasonality of beer consumption in various countries such as Italy and Norway leads to plummeting demand in winter, thereby negatively impacting the bottom line of manufacturers in some parts of the year. Furthermore, the overconsumption of beer among consumers may have a negative health impact, thus hampering the demand.

Be that as it may, modernization of distribution systems and large untapped markets in various parts of Eastern Europe are expected to fuel the demand for different types of beer in the region. This is expected to widen the consumer base for beer in Europe.

The study presented here is based on a report by Transparency Market Research (TMR) titled “Beer Market (Product - Ale Beer, Lager Beer, and Stout Beer) - Europe Industry Analysis, Size, Share, Growth, Trends and Forecast 2015–2021”

The Europe beer market is segmented based on:

Product
Ale beer
Lager beer
Stout beer
Country
Germany
U.K.
Italy
Spain
France
Rest of Europe

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