According to a recent Technavio Research Report, the beer market (standard lager, premium lager, specialty beer, and others) is trending to hit $76 billion, growing at a compounded annual growth rate of three percent from 2018 to 2022.
Due to the increasing popularity of craft beer, the global beer market has seen heightened preference for flavored beers by consumers, especially millennials. This includes the introduction of new ingredients and innovative flavors, combining salty, fruity and tart flavors. As millennials are experimental and like to try out newer experiences, their increasing preference for flavored beers has seen breweries adopting and incorporating newer flavors.
For example, in April 2018, AB InBev launched Bud Light Orange and MillerCoors launched Two Hats, a fruit-flavored light beer, for new beer drinkers.
“The demand for craft beer has been increased incrementally over the years, leading to a rise in the number of craft breweries. The US registered a 16 percent rise in the number of breweries, as compared to 2016, due to rising popularity of craft beer, growing disposable income, and increasing consumer preference for locally brewed beers that have a distinctive taste,” says a senior analyst at Technavio.
The standard lager segment led the market in 2017 with a market share close to 57 percent, followed by premium lager, and specialty beer respectively. During the forecast period, the specialty beer segment is expected to register the highest incremental growth of close to once percent.
The rising demand for new products is leading vendors to continually launch innovative products and expand their customer base.Such product launches should enable the market to continue registering a positive outlook during the forecast period.