Craft beer is a type of beer brewed in a traditional manner and usually produced in smaller quantities than that of the conventional beer. The production of craft beer generally takes place in regional craft breweries and microbreweries dedicated intensively for craft beer production. The global craft beer market is primarily dominated by the Americas and Europe, with the US being the largest craft beer country-specific market both in terms of volume and revenue. Craft beers are characterized by various innovative and exotic flavors.

Craft beers and microbreweries are niche concepts in India which have been growing for past few years and are beginning to take shape now. They are mushrooming in many parts of the country. This is an emerging trend that is certainly attracting middle class Indians, particularly in urban areas. The craft beer market in India is pegged at Rs. 280 crore and may grow to Rs. 4,400 crore by 2020.

The big names in the craft beer business including Gateway Brewing Co. (Mumbai), Doolally (Pune/Mumbai), Effingut Brewerkz (Pune), TJ (Pune), The Barking Deer (Mumbai), The White Owl (Mumbai), Irish Village (Pune) and Brewbot (Mumbai)

Craft beer is beer the way it was meant to be, the way it was brewed about a hundred years ago. It is made fresh with all natural ingredients and zero chemical or preservative additions. The Indian craft beer industry greatly benefits from the frequent foreign travel that is a part of our IT sector.  

Craft beer is a beer that is brewed by a small, independent, and traditional brewer. Craft beer is getting more popular in different parts of the world with local and international brewers expanding their network and offering exciting new flavors and tastes. The rising consumer preference for low alcohol by volume (ABV) beer is the main reason for the significant growth of the global craft beer market. As consumers are positively responding and appreciating new styles of flavors of craft beer, the industry will grow rapidly with more players entering the market rapidly. With the use of premium quality raw materials and advanced brewing techniques, brewers have been successful in attracting consumers towards craft beer from mainstream beer.

Beer

The global craft beer market to grow at a CAGR of 11.04% during the period 2017-2021. The latest trend gaining momentum in the market is increasing exports of craft beer. In the past few years, the American craft beers were not likely to find a place in the beer markets of Europe and Asia. Current scenario, the American craft beers are one of the major reasons behind the increase in demand for craft beers in Asia and Europe. Craft beers are also able to compete successfully with other alcoholic products in the European countries. The demand for exotic, rare, and innovative flavors of craft beers has increased.

The growing awareness among the consumers with respect to the wide range of flavors and styles of the craft beer coupled with low alcohol by volume (ABV) percentage is expected to drive demand over the forecast period. Furthermore, the growing number of craft beer enthusiasts in the U.S., Germany, Belgium, UK and Japan is expected to have a positive impact on the market.

The U.S. market experienced sluggish growth post-introduction period of the product, owing to the consumer preference for mainstream beer over craft beer. However, advancement in the brewing process and the use of premium quality raw materials has improved the overall characteristics of the product, which has intrigued the attention of the consumers.

New varieties and product development have attracted more consumers towards the craft beer and its sale surged globally. For instance, coffee flavored beer and blended beer are found to have high popularity in the Europe. In addition, since the blending tend to lower the shelf-life of the product, they are manufactured and retailed under the craft beer verities. U.S., U.K., Germany and France are amongst the major developed countries holding a major share in the craft beer market. Branding and promotion of flavored variety of craft beer is supporting its sale on a global level.

The trend of consumption of craft beer began in western world and spread to other regions rapidly. The increasing purchasing power of consumers, trends of healthy consumption leading to changes in consumption basket of consumers are likely to remain significant. The increasing consumption of craft beer is driven by this desire to socialize and spend some quality time with family and friends. The craft beer is considered fresh and is preferred by mass consumer especially in developed countries and the trend is spreading across the globe.

Craft beer has gained its popularity as consumers want to keep experimenting with the various available flavors of beer. Unique flavor and processing method of craft beer is attracting consumer towards its consumption, thus raising its sale.

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