Introduction
The Global Beer market is projected to register a CAGR of 6.17% during the forecast period. The key factors driving the growth of the beer market are the growing demand for low-alcohol and non-alcoholic beer coupled with the expansion of key players in emerging markets. As a part of this, according to MRFR analysis, summertime sales of low- and no-alcohol beer are surging as brewers increase output to keep up with demand. A growing desire to live a better lifestyle among many people, especially some members of Generation Z and millennials, has been linked to the growing demand for beer that isn't alcohol. Premium brands have also begun releasing beers to meet this need. According to the British Beer and Pub Association, sales of low- and no-alcohol beer in pubs have increased by 23% in the last year when compared to the year before and have more than doubled since 2019, right before the outbreak. Additionally, it stated that in addition to their regular selections of alcohol-free beverages, 85% of UK pubs, or roughly 39,000 establishments, now provide at least one low- or no-alcohol beer.
However, the high taxes imposed on beer in certain countries are expected to restrict the market's growth during the forecast period. As a part of this, according to MRFR analysis, beer is subject to a federal excise tax in the United States that varies depending on production, location, and amount. In addition, all 50 states as well as the District of Columbia impose their taxes on fermented malt beverages. While general sales taxes are added after the price of the items is subtotaled, beer excise taxes are collected directly from the retailer by the majority of states based on the volume of beer sold, typically stated in dollars per gallon.
The Global Beer market is highly competitive, with key industry players adopting various strategies such as product launches as well as partnerships to strengthen their market positions. The majority of companies in the sector put their primary attention into growing their operations across borders, improving their capabilities, and forming reliable alliances. Market conditions, government assistance, and industry development all influence market participants' ability to flourish.
competition dashboard
The benchmarking is done by assessing the product breadth & price range offered; operating locations globally; strategic partnerships, collaborations, and M&A carried out by the company in the sector; and product and based on the years of experience in the industry.
competitor DASHBOARD: GLOBAL BEER MARKET
PRODUCT PORTFOLIO
Each product and service that a company offers is compiled into a product portfolio. The origins of the company's sales, profitability, and growth possibilities can be revealed by a thorough review of its portfolio. The portfolio can be seen as a collection of product lines or as a collection of distinct items. Sometimes having a strong portfolio helps in creating a good customer base.
REGIONAL PRESENCE
The regional presence helps to identify the number of areas in which the company has its presence. A strong territorial network creates value by determining the priorities of the cities, states, or countries and this helps in maintaining the product portfolio of the company.
STRATEGIC ALLIANCES
A strategic alliance is an agreement between two businesses to work together on a project that will benefit both parties while maintaining their freedom. The agreement is less complex and legally binding than a joint venture, which involves two companies pooling their resources to create a new company.
INDUSTRY EXPERIENCES
The knowledge and skills in a particular field or trade are known as industry experience. Through industry experience, one can figure out how many years the company is operating in the market. It is easy for consumers to trust a company with good industry experience.
Michael Porter's Five Forces model is a framework for studying the Global beer market. Strategic business managers trying to gain an edge over competing firms in the beer market can utilize this model to comprehend better the industry in which the company operates. The components of each of the forces and the degree of impact of each component in the context of the beer market have been broken down and analyzed.
Porter’s five forces model: Global beer Market
Bargaining Power of Suppliers
The raw material in the global beer market includes malt, water, hops, and yeast. The presence of large number of suppliers across the region tends to lower the bargaining power of suppliers in the global beer market. For example, Anheuser Busch InBev is a leading supplier of beer across the North American region. The company nearly source all the ingredients from American farms, and for decades, the company has collaborated closely with the growers to make sure that only the best ingredients are used to brew the beer. The business has been proudly producing some of America's favourite beers since the 1850s. By meeting consumer demands, the company's portfolio of incredible brands is still leading the industry today. The first major beer to be USDA organic certified is Michelob ULTRA Pure Gold, which comes in flavoured variations including Bud Light Lime. Moreover, market players enter into partnerships and agreements with raw materials producers and suppliers to ensure a continuous, uninterrupted supply. For example, in February 2023, after partnering with brewing behemoth Budweiser, UK-based craft beer manufacturer Brewdog is growing in China. Budweiser China and the Scottish company will collaborate to brew Punk IPA and other beers in China. In the second-largest economy in the world, Brewdog also intends to add more bars.
Hence, the bargaining power of suppliers in the Global beer market is expected to be low.
Bargaining Power of Buyers
The presence of many established beer manufacturers operating in the region increases availability and the switching costs for buyers. For instance, Molson Coors Beverage Company provides a range of brands of beer such as India beer consisting of blonde lager a crisp and thirst-quenching with a faint fragrance of hops. India beer blonde lager, which has undertones of citrus and dried fruit, goes well with seafood, particularly shellfish. Furthermore, in January 2022, Molson Coors closed a flurry of partnerships in 2021 to bring brands including Blue Moon Belgian White, Coors Light, Miller Genuine Draft, and Staropramen to millions more consumers around the world, from Kazakhstan to South Korea, the Caribbean, and Brazil. Molson Coors will be able to expand production and distribution of its goods into new markets owing to the licensing and export agreements, the majority of which will open in 2022. The business obtained deals with several nations in Latin America, including Brazil, the third-largest beer market in the world. According to the agreement with Heineken, blue moon Belgian white will be produced locally and will be a key component of the country's craft portfolio for Heineken once it starts brewing early this year. The number of buyers in the global market is high and diversified, due to which manufacturers provide products with differentiated and innovative flavors.
Hence, the bargaining power of buyers in the Global beer market is expected to be high.
Threat of New Entrants
Moderate capital investments required to produce beer with various innovations favor the entry of new players in the global beer market. However, the presence of established players in the market acts as a challenge for new entrants to establish their brands. For instance, Asahi Breweries Ltd manufactures a wide range of beer, alcoholic drinks other than beer (Western spirits, RTD, wine, shochu), and alcoholic beverages. The company offers a broad selection of product lineups in each category along with Nikka Whiskey Co., Ltd., Enoteca Co., Ltd., and other group firms. With a focus on its flagship beer brand Asahi Super Dry, low-malt beer Asahi Style Free, and new genres Clear Asahi and Asahi the Rich, the company offers fresh drinking experiences and value propositions that are specific to each brand in the beer category. It is effective. Since its introduction on March 17, 1987, "Asahi Super Dry" has changed the meaning of "dry" in beer. It is now available in more than 50 nations and regions. Furthermore, stringent government regulations related to packaging of beer may also exert an entry barrier. Thus, the threat to new entrants in the global beer market is expected to be moderate during the forecast period.
Hence, the threat of new entrants in the Global beer market is expected to be moderate.
Threat of Substitutes
There are substitutes for beer i.e., white grape juice, white wine, and others. The white grape juice is quite beneficial for the heart. They are renowned for lowering blood pressure, improving blood flow, treating blood clotting, and lowering the risk of heart-related issues like atherosclerosis. Furthermore, research indicates that white grape juice concentrate lowers cholesterol by reducing chemical absorption into the blood. Moreover, white wine is an alcoholic beverage that is translucent or light golden in color and frequently made from grapes with light peel. Dark grapes can also be used if their flesh is light in color. In either case, white wine ferments with little touch to the skin and stem, giving it a clear color and little tannin. Thus, the threat of substitutes in the global beer market is expected to be high during the forecast period.
Hence, the threat of substitutes in the Global beer market is expected to be high.
Intensity of Rivalry
A high intensity of rivalry marks the global beer market due to the presence of numerous local and global manufacturers. The established players in the market are targeting competitors in terms of quality, price, and product differentiation, thus making the industry competitive and reducing profit potential for the existing firms. The key players invest in product development by introducing various beer to bring about innovation in their product lines and meet changing consumer preferences. For example, in May 2021, a long-term, strategic cooperation between Beam Suntory and The Boston Beer Company aims to expand some of its renowned brands into the beverage alcohol markets that are expanding the quickest. Boston Beer, a pioneer in craft beer, and Beam Suntory, a global leader in premium spirits, initially intend to produce products through this relationship that will further integrate the Sauza tequila brand into ready-to-drink (RTD) beverages and Truly Hard Seltzer into bottled spirits. By mid-2022, the first new items arising from this agreement will be accessible through consumer retail channels across the United States, with future plans to extend across more significant brands.
Hence, the intensity of rivalry in the Global beer market is expected to be high.
Regulatory Landscape
The regulatory landscape of the global beer market is complex and varies significantly across different regions, with governments and international organizations implementing a range of regulations to manage the production, distribution, and consumption of beer. These regulations cover areas such as alcohol content, labeling, advertising, health warnings, and environmental sustainability, all of which impact how breweries operate and how consumers interact with beer products.
In many countries, alcohol production and distribution are heavily regulated due to concerns over public health, safety, and taxation. In the United States, for example, the Alcohol and Tobacco Tax and Trade Bureau (TTB) oversees the labeling, marketing, and taxation of beer, ensuring that products comply with federal standards.
