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Breakthroughs that will shape the future of the lager industry

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Global Beer Industry

One of the major industry within the alcoholic beverage sector is the beer industry. In 2010, it recorded almost 1% expansion to reach nearly $495 billion, reports MarketLine. Market growth is expected to jump by 6% in the five-year period ending 2015, when it is expected to exceed $523.5 billion. At that point the market will exceed 183 billion liters in volume, a near 9% increase in five years. Standard lager represents the leading market segment, accounting for more than 55% of the overall market. The market is characterized by fragmentation. The three leading companies hold a combined market share in excess of 40% in terms of volume.

Global Industry Analysts predicts the world beer market will see growth lead by emerging nations like Latin America, Middle East and Asia-Pacific. Market expansion will be fuelled by rising disposable income, the spread of Western influence on lifestyles worldwide and economic growth. Beer is the world’s number-one alcoholic beverage, with consumption suitable for various occasions at home, in restaurants, bars and clubs.

Beer remains a versatile product, with the launch of a wide range of new flavors boosting the drink’s popularity. Consumption is also being fuelled by a trend toward drinking beer with meals. Widespread health concerns among consumers is also encouraging a trend toward beer, which usually has less than 5% alcohol content, rather than other higher alcohol content beverages.

Industry Leaders

Anheuser-Busch InBev remains the global leader in the beer market, with over 20% market share in terms of volume, according to MarketLine.

Regional Market Share

Brazil, Russia, India and China (BRIC) are recording the highest rate of market growth within the global beer industry, generating almost $108 billion in 2010, according to MarketLine. India led the group in terms of growth, reaching a yearly rate of 2% between 2006 and 2010. China led the group in terms of revenue, generating more than $58.5 billion in the same year. China is forecast to remain at the top of the BRIC countries, expected to hit close to $82 billion in 2015.

Indian beer consumers are opting for beer due to rising income levels in the country. Microbreweries have sprung up to cater to this increased demand in Pune, Bangalore and Gurgaon. As tax on imported beer rises, microbreweries are proving the more cost-effective option to meet domestic demand for beer in India.

Asia-Pacific’s beer industry exceeded sales of $135 billion in 2010, having recorded a yearly growth rate of 5% between 2006 and 2010, reports MarketLine. Standard lager represents the leading market segment, exceeding $101 billion in 2010 to account for more than 75% of the overall market. Market growth is expected to slow to a yearly rate of 4% between 2010 and 2015, when it should bring the market to almost $164 billion. 

The G8 nations beer market grew at a yearly rate of almost 1.5% in the four-year period ending 2010, when it was worth close to $256 billion, reports MarketLine. The US leads these nations, generating almost $77 billion in 2010, accounting for more than 30% of the overall market. The US beer industry is expected to remain in the top spot of the G8 nations, hitting just over $75 billion in 2015.

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