Wednesday 30 March 2016

An Overview of Global Beer Market from a Regional Perspective

Consumption of beer can be traced back to over six thousand years. From being an inseparable part of the ancient Egyptian civilization to becoming a highly popular commonplace drink, consumed by all social classes in several countries, beer has come a long way. The global market for beer is projected to exhibit steady growth over the coming few years, thanks to the rising consumption and popularity of the drink in some of the major regional markets.

A brief overview of some of the major drivers of the beer market in key regional markets is as follows:

Post-depression Financial Recovery in Europe

Europe is home to several local breweries apart from major manufacturers of beer. The market for beer in Europe, beer being one of the most popular alcoholic beverages in the region, is well established and has been exhibiting steady growth over the past years. Factors such as rising disposable incomes post the recent economic depression in the region and the rising awareness about the health benefits of beer, which include prevention of kidney stones, lowering of cholesterol and curing insomnia when beer is consumed in stipulated amounts, are also boosting the market for beer in the region.

Introduction of Organic Beer in Middle East and Latin America

Middle East has always been a tough territory for all alcoholic beverage markets. Prohibitory rules  on the consumption of alcoholic beverages implemented by several established religious and government bodies are major restraints for the beer market in the Middle East. Egypt and UAE held a dominant share of over 40.62% in the Middle East beer market. The consumption of alcoholic beer is much less in most other Middle Eastern countries. Nevertheless, the introduction of organic beer and the rising awareness regarding health benefits of the drink will fuel demand from the market in the near future.

On the other hand, Latin America has no such restrictions and thus has a larger consumer base for beer. Suitable climatic conditions and the rising awareness regarding health benefits of beer are expected to further boost the demand for beer in Latin America in the next few years. 

Rising Disposable Incomes in Asia Pacific

The rising demand for beer in Asia Pacific can be primarily ascribed to strengthening economies and rising disposable incomes of working class consumers in the region. As more consumers are willing to spend on high-end alcoholic beverages either in restaurants or at home, the demand for beer in the region has seen significant rise in the past few years. The beer market in Asia Pacific has also observed significant rise in demand in the past few years owing to the rising number of malls, convenience stores, bars, restaurants, and liquor shops across the region.

Some of the major restraints hampering the beer market in Asia Pacific are the several government restrictions pertaining to alcohol content in a variety of beverages and complete ban on the sale of alcoholic beverages across several regions or during some occasions. These factors, however, will not excessively impede the market for beer in Asia Pacific and the market is projected to expand at a healthy 5.0% CAGR between 2014 and 2020.

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