Industry News

Three Cheers to the Global Craft Beer Market


Craft Beer is a beer made in a non-mechanized or traditional way by a small brewery. Less than 25 percent of craft brewery is controlled or owned by an alcoholic beverage industry member who is not itself a craft brewer. Craft brewers are the small brewers. The hallmark on which the of craft beer and craft brewers are working is innovation. 
Craft beer is generally made with ingredients which are traditional like malted barley, yeast, wheat, sugar, and hops or sometimes non-traditional ingredients are added for distinctiveness.




The craft brewers have individualistic, distinctive approaches to connect with their customers.

These facts along with growing awareness among consumers with respect to wide range of styles and flavors of the craft beer is expected to drive the demand and making the craft beer industry popular, thus contributing to the growth of Global Craft Beer Market.

Benefits of Craft Beer

·     Higher alcohol content

·     Superior ingredients

·     Improves health

·     Less calories

·     Better taste

·     Greater variety

·     Lower cost

·     Environment friendly brewing

·     Supports local economy                                                                  

Government Regulations for Craft Beer Breweries

Even though there are substantial improvements over the years in craft beer market, water consumption and wastewater disposal continues to create the environmental hurdles which are directly impacting breweries and the brewing process because the brewing process is energy intensive, and uses substantial volumes of water. The FSMA (Food Safety Modernization Act) includes number of new requirements, with breweries now required to comply with the FDA standards. Further, breweries must implement Good Manufacturing Practices (GMPs), which will be audited by regulatory agencies. GMPs represent the standards that brewery operations must follow in order to ensure their facility is hygienic, clean, and safe. These precautionary measures results in mitigating risks and help prevent the contamination. They also serve as a foundation for quality assurance programs. Many breweries across the globe are committed to reduce their impact on environment and ensuring high sanitation processes.

Global Craft Beer Market Overview

The craft beer market is expected to witness substantial growth on account of rising demand for low alcohol by volume (ABV) and flavored beer. North America being the largest market for craft beer, with Canada and the US being largest consumers of craft beer. The Latin America craft beer market is still in the growth phase, but increasing value of exports of craft beer products from the US, rising disposable income of consumers, shifting consumer preferences toward low-alcoholic content beverages and rising number of microbreweries in Latin America are the major drivers impacting the growth of craft beer market in the region. The government in countries like New Zealand, Australia, Mexico, Belgium, UK and China are promoting the production of craft beer also the incorporation of new breweries due to their positive contribution towards employment generation and economic development coupled with the willingness of the consumer to pay extra for better tasting brews leads to the significant growth of Global craft beer market in the coming years.


Figure 1: Worldwide Beer Production, By Region, 2016 (Million Hectoliters)