Increase in Demand for Beer Across the World and Growing Number of Breweries Has Fueled the Growth of Global Beer Industry

Over the past few years, there has been a notable increase in the number of breweries. Beer has a larger global market share than other alcoholic beverages. Beer is quickly becoming more popular among millennials and Gen Z due to its unique ingredients, formulations, and flavors. Initially, flavored beer was mainly consumed in Europe and North America, but in the recent years, its demand has increased exponentially around the world, as consumers today are considerably more adaptable and willing to try new things, which has a positive effect on the beer market as a whole.

According to a recent report by, Allied Market Research the beer market is anticipated to display a noteworthy CAGR from 2021 to 2030. To establish their position in the market, multinational brewing companies are taking part in launching new products, and mergers & acquisitions. In their production strategies, manufacturers are taking into account factors such as enhancing their efficiency, keeping abreast of market developments and consumer demands, and maintaining robust distribution channels.

Demand for craft beer is significantly increasing, young generation favors craft beer due to its wide variety of flavors and styles. Increasingly more people are drinking artisanal beer. Craft breweries are recognized for their constant experimentation with different ingredients to create distinct and innovative flavors. Due to the intense competition between beer brands that produce beverages, new flavors were developed and consumption of beverages increased. For instance, the Miami Brewing Company in Redlands produces unique brews using South Florida's exotic tropical fruits.

China’s Beer Market: Outlook and Opportunities

The Chinese beer market has grown at an unbelievable rate, largely because of significant foreign investment and an increase in average consumer spending brought forth by the government's economic reform initiatives. Over the last 20 years, China has grown significantly to become the world's largest beer market.  

The beer market in China has started a new cycle that is characterized by improved product specialization and rising demand for high-end and medium- goods. China's beer production has been declining since it peaked in 2013. However, despite the market being severely affected by the COVID-19 pandemic the year before, China's beer production increased by 5.6 percent. China consumed 45.7 billion liters of beer annually in 2021, including both the domestic and international brands. In the meantime, imports have grown by volume and value by 11 percent and 13 percent annually, respectively.

Over 90 percent of the market is made up of regional local beers that are classified as craft beers, foreign goods, and luxury brands. The largest breweries in China compete head-to-head with foreign companies like Carlsberg and Budweiser Asia Pacific in terms of sales. Beer is consumed in China for a variety of reasons. The most frequent uses are drinking alone, combining a drink with a meal or snack, and doing so at home, in bars, and restaurants. 

Anheuser-Busch InBev, Yanjing Beer, Carlsberg, CR Snow, Tsingtao Brewery, and Yanjing Beer were ranked as the major players in the Chinese beer market in 2021. These five brands collectively hold more than 70 percent of the market, which indicates a high degree of production costs. 

By 2026, the China beer market is likely to grow due to the factors such as China’s cheap average retail price (ARP) for beer, increasing barley imports, fast-paced urbanization, and rising beer consumption among young generations. However, the lifelong health effects of excessive beer consumption, the negative environmental impacts of beer production, and strict governmental regulations are potential obstacles that the market development may have to deal with in the future.

However, there are also some encouraging developments to be observed, including a surge in online beer purchases, a growing fondness for high-end beers among consumers, and a heightened demand for non-alcoholic beers. In addition, the resumption of pre-pandemic travel and trade is probably going to fuel a growing demand for imported goods, which has already been seen in China's preference for imported beers

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