Study says increasing demand for craft beer will boost Europe's beer market through 2020
A new study by Technavio has revealed that increase in demand for craft beers will boost the beer market in Europe through 2020.
Europe's beer market is anticipated to increase at a steady compound annual growth rate (CAGR) of over 1% during the forecast period.
Technavio claims that the report titled ‘Beer Market in Europe 2016-2020’ offers in-depth analysis of the beer market in terms of revenue and emerging market trends.
It also offers an up to date analysis and forecasts for several market segments and all geographial locations.
The study has categorised beer market in Europe into five major product categories including standard lager, premium lager, specialty beer, ales and stouts, low/non-alcoholic beer.
At present, the demand for specialty beer and low/non-alcoholic beer has increased in Europe. But, the demand for standard lager has been decreasing,and is expected to remain steady during the forecast period. It is still one of the preferred category in countries such as Czech Republic, Poland and Slovakia.
Rise in standards of living across Europe is being attributed for increase in the demand for premium products, which also goes for premium lager.
In markets such as the UK, Romania and Poland, an increase in the demand for flavoured lager has been noted. For the forecast period, it is expected that the premium lager will comprise about 70% of the volume sale of flavoured lager.
The report also noted that the demand for craft ales and stouts is growing in the European market. With decreased prices, private label products are making their way into the market.
Low and non-alcoholic beers are now considered to be of high demand in Europe. European brewers opine that there is a huge long-term sales potential for low/non-alcoholic beer. With healthier forms of beer being available, this category is being consumed frequently, which has been the driving factor for sales in the region.
Technavio lead analyst Manjunath Reddy said: “Brewers are focusing on female-centric branding and trying to educate potential consumers about the low alcohol content and lower calorie levels.
“Launched in 2012, the European Beer Pledge, which focuses on reducing alcohol-related harm, is also a major driver for the growth of the European non-alcoholic beer market, especially among binge drinkers and people who drive home after partying at night.”
Image: Demand for low/non-alcoholic beer to increase through 2020. Photo: Courtesy of Stuart Miles/FreeDigitalPhotos.net.