The brewing industry is a global business and beer is known to have been brewed by the early Europeans as far back as 3000 BC. The Europe beer market today is a multibillion-dollar industry that has gained significance as the most preferred alcoholic beverage among a wide variety of demographics. A report published by Transparency Market Research pegged the value of the Europe beer market in 2014 at US$131.46 billion, which is anticipated to grow to US$160.99 billion by 2021.
While large commercial breweries in Europe are the big money-makers, microbreweries or craft breweries have gained popularity in recent years. The beer market in Europe has gone back and forth when it comes to brewing methods. During the early-to-mid 20th century, larger brewing companies were the trend, which began to change in the 1970s. Smaller breweries or independent brewpubs became more popular among beer enthusiasts, with a focus on quality, brewing technique, and flavor. Today, aging and cellaring craft beer has emerged as the industry’s frontier. However, soaring temperatures in recent weeks have adversely affected the hop harvest in Europe, threatening the craft beer market. Slovenia and Germany are Europe’s leading hop growers and industry experts suggest that spreading hop production over more regions could help the beer market resist such shocks.
Browse Market Research Report of Europe Beer Market:
Europe Beer Market: Strong Competition among Players Boosts Growth
The European beer market is immensely competitive. Apart from large and established beer manufacturers, there are an increasing number of local players operating in the beer market. These domestic players help in catering to the growing demand for beer from European consumers. In terms of demand, the beer market in Europe is estimated to grow at a 2.5% CAGR from 2015 to 2021, according to the TMR report. The demand for beer stood at 23.44 billion liters in 2014, which is projected to rise to 27.83 billion liters by 2021. Some of the prominent participants of the Europe beer market are SABMiller PLC, Carlsberg Group, Heineken NV, Diageo plc, and Anheuser Busch InBev.
Health Benefits makes Beer One of Most Preferred Alcoholic Beverages
There is numerous health benefits associated with beer, which propels the European market. Consuming beer in stipulated quantities lowers cholesterol, prevents the occurrence of kidney stones, and has the ability to cure insomnia. These benefits have raised the popularity of beer in Eastern Europe and are likely to stabilize growth in Northern and Western Europe by 2021.
High Market Penetration Fueling Demand for Beer
While Western and Northern Europe are poised for high market penetration over the next six years, Russia and Ukraine have been identified as major markets for beer in Eastern Europe. Germany is the largest regional segment of the beer market in Europe and is projected to grow from US$36.22 billion in 2014 to US$40.65 billion by 2021, registering a modest 1.7% CAGR during that period. France, on the other hand, is predicted to be the fastest growing beer market, developing at a 4.2% CAGR from 2015 to 2021.
Browse Market Research Press Release of Europe Beer Market:
The economic condition in Europe has been improving of late, signaling a rise in disposable income and change in consumers’ consumption habits. Market analysts believe that this might be the best time for beer manufacturers to capitalize on, given the untapped potential in many emerging markets in Europe.