Europe Beer Market: Snapshot
Not too long ago, major beer companies in Europe were limited to the local market. However, with rapid industrialization and development, beer is now being readily accepted across Western and Eastern Europe. Beer is the most favored alcoholic drink in Europe and with its increased consumption, the demand is going to scale new heights.
Beer is the most consumed alcoholic beverage in Europe and several major players operating in the beer market hail from Europe. The most crucial 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 pushing 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. The market is said to prosper in Europe with improving disposable income of the consumers. Moreover, partnerships, mergers and acquisitions, and product inventions are projected to propel the Europe beer market in the forecast period.
However, the beer market in Europe is set to face tough competition from internal and external substitutes. Wine, vodka, rum, and whisky are the internal substitutes, whereas non-alcoholic drinks including dairy drinks, carbonated drinks, energy drinks, and ready-to-drink tea and coffee are some of the external substitutes, and its seasonality.
According to Transparency Market Research, the Europe beer market is expected to reach US$ 100.80 bn by 2021 from its initial value of US$ 87.6 in 2016.
Lager Beer to Continue to be Preferred Choice
On the basis of product, the European beer market has been segmented into lager beer, ale beer, and stout beer. Lager beer accounted for a larger market share, valuing US$17.01 bn in 2014. It is expected to reach US$20.05 bn by 2021, expanding at a CAGR of 2.4% from 2015 to 2021. Lager is the most preferred type of beer consumed in Europe. The term lager refers to the beer that is fermented with yeast at a much lower temperature than other styles such as ale and stout.
Ale yeast ferments more quickly, giving a fruity, sweet, and full-bodied taste to the beer compared to lager. Due to more variety, ale is the faster growing segment of the market. The European ale market was valued at US$ 35.17 bn in 2014 and is anticipated to reach US$ 43.48 bn by 2021, expanding at a CAGR of 3.1% from 2015 to 2021.
Eastern Europe takes the Lead in terms of Consumption
Eastern Europe offers a significant untapped potential opportunity for beer manufacturers to capitalize upon. Russia and Ukraine - the growing markets of Eastern Europe offer several expansion opportunities for beer manufacturers, hence expected to show a positive growth in the coming years. The major driving factors in this region include the long tradition of alcohol consumption in Eastern Europe, increasing disposable income of consumers, strong domestic brands, and modernization of distribution systems. In addition, the middle class consumers are looking at alternate options, thus propelling the beer industry in Eastern Europe over the forecast period.
The key players in the Europe beer market include Diageo, SAB Miller PLC, Carlsberg Group, Anheuser-Busch InBev, and Heineken N.V
The history of beer can be traced back six thousand years. From being part of the ancient Egyptian civilization to becoming an important component of several economies, beer has come a long way. According to research analysts, the beer market in Europe is set to experience a steady growth rate in the next few years. Beer is consumed by all social classes in most parts of Europe on a regular to daily basis. Despite industrialization and automation, beer is brewed in traditional ways in several parts of Europe to maintain their own history, style, and taste.
With a plethora of local brewers, beer has achieved a ubiquitous presence in the region. The beer market in Europe is witnessing a boom as consumers are realizing its health benefits. The incredible amount of soluble fiber present in lager beer aids digestion and thereby reduces chances of intestinal transit. Furthermore, the high amount of silicon in beer also helps in strengthening the bones and enhancing bone density. In the coming years, the beer market in Eastern Europe will have huge opportunities to grow, as beer manufacturers will stand a chance to expand to Ukraine and Russia.
The lager beer market in Europe was valued at US$17 bn in 2014 and is expected to reach US$20 bn by 2021, growing at a CAGR of 2.40% from 2015 to 2021. The biggest contributor to this market is expected to be Germany, whose beer market was worth US$36.2 bn in 2014 and is expected to reach US$40.6 bn by 2021, growing at a steady CAGR of 1.70% from 2015 to 2021. On the other hand, France is expected to witness rapid growth in the beer market in Europe. The beer market in France is expected to reach US$15.6 bn 2021 from US$11.7 bn in 2014, growing at a CAGR of 4.20% from 2015 to 2021.
The increasing awareness about the health benefits of beer is the primary growth driver of this market in Europe. Consumption of beer in limited quantities helps in controlling cholesterol levels and prevents chances of kidney stones. Furthermore, the demand for beer in Europe is also being propelled by the improving disposable income of the consumers, as the economy is stabilizing post-recession.
However, the beer market faces restraints such as accessibility and availability of external and internal substitutes. Internal substitutes such as whiskey, rum, vodka, and wine are limiting the growth of this market in Europe; whereas external substitutes such as RTD tea and coffee and other non-alcoholic drinks including dairy drinks, energy drinks, and carbonated drinks are also creating a challenging environment for this market.
Companies Mentioned in the Europe Beer Market Report
Some of the important companies studied in the beer market of Europe are Anheuser-Busch InBev, Diageo, SAB Miller PLC, Carlsberg Group, and Heineken N.V.
The beer market in Europe is segmented in the following ways:
Europe Beer Market by Product type:
- Ale beer
- Lager beer
- Stout beer
Europe Beer Market by Country:
- Rest of Europe
This report gives you access to decisive data such as:
- Market growth drivers
- Factors limiting market growth
- Current market trends
- Market structure
- Market projections for the coming years
Key highlights of this report
- Overview of key market forces propelling and restraining market growth
- Up-to-date analyses of market trends and technological improvements
- Pin-point analyses of market competition dynamics to offer you a competitive edge
- An analysis of strategies of major competitors
- An array of graphics and SWOT analysis of major industry segments
- Detailed analyses of industry trends
- A well-defined technological growth map with an impact-analysis
- Offers a clear understanding of the competitive landscape and key product segments