Fruit Beer Market

Fruit Beer Market Snapshot (2023 to 2033)

The global fruit beer market is estimated to be valued at USD 331 million in 2023. During the forecast period, the sales of fruit beer are expected to grow at a CAGR of 6%, surpassing USD 595.5 million by 2033. Due to its low alcohol content, consumption of fruit beer is expected to elevate significantly. From 2018 to 2022, fruit beer consumption increased at a 2.4% CAGR.

Data Points	Key Statistics
Expected Market Value (2023)	USD 331 million
Anticipated Forecast Value (2033)	USD 595.5 million
Projected Growth Rate (2023 to 2033)	6% CAGR

As people become increasingly health conscious, there is a shift towards consuming beverages which are beneficial for the body. This sober revolution among millennials is a major factor propelling demand for fruit beers. Furthermore, consumers prefer fruit beers since they are high in vitamins, folic acid, minerals, and dietary fibers, making them nutritious and tasty. This, in turn, has spurred the growth of the fruit beer market.

Prominent Drivers Spearheading Fruit Beer Market Growth

Growing consumer preference for alcohol-free beer and increasing awareness of the underlying health benefits of fruit beer are expected to propel the market for the product. Furthermore, the rising popularity of fruit beer as an occasional drink among women is anticipated to boost market growth over the forecast period.

Fruit beer has gained popularity in recent years, expanding from Belgium to other parts of the world. Unlike traditional beer products, these fruit drinks are assumed to be less harmful to the human body and rarely harm the liver or kidneys. Fruit beer's nutritional benefits and fruity aroma and flavor characteristics will motivate consumers to buy these fruit drinks in the following decade.

Due to increased awareness, consumers' preferences for low or no-alcohol beer have shifted. To meet the increasing demands for low or alcohol-free beer, vendors in the fruit beer market have launched alcohol-free drinks in various flavors. For instance, Anheuser-Busch InBev and Heineken launched a non-alcoholic beer in India in June 2019, competing with beverage manufacturers, including the Coca-Cola Company and PepsiCo Inc. in brick-and-mortar stores and restaurants.

Challenges in the Fruit Beer Industry

The increasing number of campaigns emphasizing the harmful effects of alcohol consumption has led to consumers believing that fruit beers are also harmful, posing a significant barrier to market growth. Furthermore, the widespread presence of counterfeit products in well-established markets, such as craft beer and low-alcohol beer, is expected to hamper market growth.

Region-wise Analysis

Asia-Pacific Emerging as an Opportunistic Fruit Beer Market

The Asia Pacific market for fruit beer is anticipated to grow at a CAGR of 6.4% during the forecast period, owing to increased beer consumption in countries such as India, China, and Japan. The fruit beer industry anticipates significant commercial opportunities and solid growth prospects.

Rising consumer awareness of the harmful effects of alcohol on the human body is expected to propel the market for alcohol-free beer shortly. Furthermore, the increased number of quick-service restaurants in India and China due to various eating habits and the rising prevalence of socializing at bars, pubs, and liquor lounges is expected to open doors for fruit beer in the coming decades.

Europe to Act as Leading Contributor to the Growth in the Fruit Beer Market

According to Future Market Insights, Europe is expected to hold a market share of 38.2% in the global fruit beer market as of 2023. The presence of many microbreweries, along with rising consumer demand for alcohol-free beverages in countries such as France and the United Kingdom, are anticipated to remain favorable factors for regional industry development.

Beer production is regarded as a highly valued and traditionally substantiated industry in Europe, intended to pave the way for new domestic players to invest. Europe has seen a major boom in new breweries in the past three decades, with thousands established. Despite a pandemic-induced kink being experienced throughout 2020, the popularity of microbreweries has augmented significantly in the past 5 years.

The European fruit beer landscape is especially beneficial due to the emergence of several domestic microbreweries. Some of the most prominent ones include BrewDog (Scotland), Mikkeller (Denmark), Omnipollo (Sweden), Cloudwater Brew Co. (England), and Lervig Aktiebryggeri (Norway), among others.

Growth Outlook for the North America Fruit Beer Industry

Initially, North America was the kingpin regarding alcoholic beverage consumption. However, this trend has changed significantly in the past 4 to 5 years, with consumption levels declining. In 2018, alcohol consumption in the United States dropped for the third consecutive year, with conventional beer sales declining by 1.5%, per IWSR Drinks Market analysis.

This drop in beer consumption is a product of a paradigm shift towards healthy drinking. As a consequence, beer alternatives sales have been spiking, a trend that has directly benefitted the expansion of fruit beer across the continent. By the end of 2033, consumption of low or no-alcohol beverages is expected to increase by over 30%, paving the way for healthier alternatives.

According to the study undertaken by Future Market Insights, sales of fruit beer in North America are likely to contribute a revenue share of 29.3% by the end of 2033. Prominent players such as the Joseph Jones Brewing Company and Lost Coast Brewery are expected to make significant headway in fruit beer production in the future.

Category wise insights

Fruit Beer Sales rising across Hypermarkets & Supermarkets

According to Future Market Insights, fruit beer sales are expected to be maximum across hypermarkets/supermarkets, expected to yield a revenue share worth over 60% in 2033. Growth is attributed to convenience in terms of availability and accessibility for customers, as well as the presence of low alcohol content. Hypermarkets and supermarkets offer greater product variety across shelves than other distribution channels, allowing consumers to choose the product.

By Flavor, Raspberry Fruit Beer Category Projected to Dominate the Market

By flavor, demand for raspberry fruit beer is expected to tower over the rest, owing to the sheer exceptional nutritional benefits of raspberry, such as low-calorie content and high concentrations of fiber, vitamins, and minerals. Furthermore, consumers are expected to purchase such products due to the exceptional flavor characteristics of raspberry.

Moreover, raspberries are a rich source of essential minerals, especially potassium. Potassium is highly essential for ensuring proper heart function and is proven to regulate blood pressure. The omega-3 fatty acids in raspberries can help prevent stroke and heart disease.

The Start-Up Ecosystem of the Fruit Beer Market

With the ever-expanding trend of healthy beverage consumption, many beverage start-ups offering fruit beer are emerging in the global landscape. This trend has especially gathered momentum in the aftermath of the COVID-19 pandemic, particularly in the United States. The "sober curious" movement especially gained traction during this time, with a significant presence across social media platforms.

There's also a renewed interest in Dry January, where participants refrain from consuming alcohol during the first month of the year. In 2022, around 15% of US adults said they intended to stay dry in January, up from 10% the previous year. As more people are seeking to pause, reset, or overhaul their relationships with alcohol, startups have emerged to fill a growing market need for non-alcoholic (NA) beverages. Some notable start-up companies are as follows:

• Ghia: Los Angeles-based Ghia is a significant player, especially in the production of non-alcoholic aperitifs made from Riesling white grape juice concentrate, Yuzu juice, and several other extracts- fig and elderflower to orange peel. Founded in 2019, the company raised USD 480,000 of seed funding from Cleo Capital and offered products intended to soothe and stimulate the human senses
• Lyre's Spirit Co.: England-based Lyre's Spirit Co. was founded in 2019 and aims to replicate the world's most popular spirits, including gin, bourbon, absinthe, and more, in a non-alcoholic format. In November 2021, it raised USD 27.7 Million of early-stage venture capital funding in a deal spearheaded by D. Squared Capital.
• Drink Monday: Drink Monday's NA London-dry style gin and NA all-American whiskey are especially targeted at people associated with the Sober Curious movement, pregnant women, people dealing with health issues, or people looking to enjoy a non-hangover drinking experience. The Carlsbad, California-based startup is in the process of raising USD 250,000 in equity crowdfunding via SI Securities as of January 2022.
• Ritual Zero-Proof: Chicago's Ritual Zero Proof manufactures non-alcoholic gin, rum, tequila, and whiskey made with all-natural, individually distilled botanicals. Founded in 2019, the company raised an undisclosed amount of early-stage venture funding from Distill Ventures—a London-based venture capital firm that offers accelerator programs and invests in startups looking to launch and grow NA brands in January 2020.

Market Competition

Some of the key participants present in the global Fruit beer market include Joseph James Brewing Company, Inc., Lindemans Brewery, Lost Coast Brewery, Magic Hat Brewing Company, New Belgium Brewing Company, Brewery Ommegang, All Saints' Brewery, Shipyard Brewing Company, Unibroue, Wells & Young's Ltd., Brouwerij Van Honsebrouck N.V., Abita Brewing Co. and Pyramid Breweries, Inc., Anheuser-Busch InBev, and St. Peters among others. Due to the sheer range of participants, the market is highly competitive.

Some recent developments in the fruit beer industry are as follows:

• The Boston Beer Company's Samuel Adams brand produces a variety of fruit-infused beers, including "Samuel Adams Summer Ale" and "Samuel Adams Cherry Wheat," catering to beer fans looking for pleasant fruit flavors.
• Sierra Nevada Brewing Co. has created fruit-infused beers such as "Sierra Nevada Otra Vez" and "Sierra Nevada Tropical Torpedo," which combine fruit flavors with hop bitterness to create a balanced taste.
• Deschutes Brewery has a broad range of fruit-forward alternatives for beer fans, including their trademark "Black Butte Porter" brewed with cherries and "Fresh Squeezed IPA" with zesty hop flavors.

Key Companies Profiled

• Joseph James Brewing Company, Inc.
• Lindemans Brewery
• Lost Coast Brewery
• Magic Hat Brewing Company
• New Belgium Brewing Company
• Brewery Ommegang
• All Saints' Brewery
• Shipyard Brewing Company
• Unibroue
• Wells & Young's Limited
• Brouwerij Von Honsebrouck N.V
• Abita Brewing
• Anheuser Busch InBev
• St. Peters

Key Segments Profiled in the Fruit Beer Industry Survey

By Flavour:

• Raspberry-flavored Beer
• Peach-flavored Beer
• Blueberry-flavored Beer
• Cherry-flavored Beer
• Plum-flavored Beer
• Other Fruit-Flavored Beer

By Distribution Channel:

• Fruit Beer Sales via Hypermarkets/Supermarkets
• Fruit Beer Sales via Departmental Stores
• Fruit Beer Sales via Specialty Stores
• Fruit Beer Sales via Online Retailers

By Region:

• North America
• Latin America
• Europe
• Asia Pacific
• Middle East & Africa

Frequently Asked Questions

What is the Present Market Value of Total Fruit Beer Produced around the World?

The global fruit beer market might create a value of USD 331 million in 2023.

Which are the Most Popular Flavors of Fruit Beers?

Fruit beers of raspberry flavor sale at a higher rate in the global market.

What is the Key Trend Driving the Sales of Fruit Beer in North America?

The growing trend of non-alcoholic drinks is driving the sales of fruit beer in North America.

What is the Performance of Europe Fruit Beer Market Share in Recent Years?

The revenue generated by sales of fruit beer in Europe may contribute 38.2% market share in 2023.

Which Regional Market Seems Promising with Growing Demand for Fruit Beer?

The demand for fruit beer in Asia Pacific countries is projected to grow at 6.4% CAGR until 2033.