The global lager market is expected to reach a market valuation of USD 380.73 billion by the end of 2023, accelerating at a CAGR of 3.1% during the forecast period (2023 to 2033). Lager sales are likely to account for 55% of the demand in the global beer market, valued at USD 512.26 billion in 2033.
The rapid expansion of the alcoholic beverage market is one of the key factors driving the demand in the market. In addition, the rising consumption of premium alcohol, particularly among millennials, is improving the demand for premium and super-premium beer.
Experimenting with a variety of alcoholic beverages available at bars, restaurants, motels, and fast food outlets is becoming increasingly popular. Also, the invention of unique flavors such as cheese, apple, blueberry, lemon, and chocolate in alcohol is expected to provide an impetus to the growth in the market.
| Attributes | Key Insights |
|---|---|
| Lager Market Size (2023) | USD 380.73 billion |
| Market Projected Size (2033) | USD 512.26 billion |
| Value CAGR (2023 to 2033) | 3.1% |
| Top 3 Countries Market Share | 30.6% |
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Lager sales grew at a CAGR of 1.8% between 2018 and 2022, as per Future Market Insights (FMI). Growth in the market is predicted to rise with the increasing presence of market players and product innovations in the alcohol industry. The sales in the market are expected to grow at a CAGR of 3.1% during the forecast period (2023 to 2033).
Lager is the most popular type of beer, accounting for more than 50% of global consumption, according to FMI. Consumption of lager is on the rise, according to craft brewers and retailers, as a preference for palatable options is surging over the high-alcohol, hoppy IPAs, and other craft beers.
Lagers are preferred over ales as they have a lighter, clearer appearance, lower alcohol level, and a sweeter, smoother, crisper flavor due to higher sugar content, slower fermentation, and cold treatment.
The yeast and brewing procedures have the greatest impact on these factors, with additional tastes and post-fermentation handling also having a significant impact on the final product. On account of these factors, FMI predicts the demand in the larger market will reach USD 380.73 billion in 2023 to a total of USD 512.26 billion by the end of 2033.
| Country | 2022 Value Share in Global Market |
|---|---|
| United States | 24.0% |
| Germany | 7.1% |
| Japan | 4.8% |
| Country | CAGR (2023 to 2033) |
|---|---|
| China | 11.1% |
| India | 4.1% |
Rising Consumption of Alcohol Coupled with the Presence of Numerous Brewery in the USA to Push Sales
Beer is the most widely consumed alcoholic beverage in the USA, according to the study. In terms of demand, the USA lager market is expected to gain traction over the upcoming decade with the growing consumption of alcohol and the increasing presence of breweries in the country.
According to the National Epidemiologic Survey on Alcohol and Related Conditions, around 24 million USA adults consume over 74 drinks per week on average. Numerous breweries and distilleries across the country respond to the tremendous demand for alcoholic beverages.
However, 30% of the population of the USA is a teetotaler, which might affect the growth in the market. As per FMI, the USA's larger market is expected to hold more than 80% of the North American market, in 2023 which is expected to grow at a CAGR of 2.2% between 2023 and 2033.
Germany Lager Market to Benefit from Growing Popularity of Pale Lager
The most popular beer style in the world is a pale lager, which outsells all other styles in terms of consumption, opines FMI. Pale lager is moderate and light, with a low alcohol content, and is the most preferred in Germany. The growing popularity of pale lager, particularly the Bavarian pale lager variety, will influence sales in the market.
Pale lager is expected to be the third most popular beer style after pilsner and wheat beer. With increasing consumption of pale beer, FMI estimated that pale beer accounted for 8.1% of demand share in 2022 and the trend is likely to continue in the upcoming decade, fueling larger sales.
Growing Intake of Low-Alcohol Beer to Improve Lager Sales in the United Kingdom
Sales of low-alcohol beers have been increasing as a result of growing demand from health-conscious consumers and a larger selection of new varieties with superior taste. A trend toward low-alcohol beers and ciders has emerged as a result of surging awareness about alcohol unit intake and customers' enthusiasm to try new beverages.
This trend can be seen in the volume demand for lager in the United Kingdom, where off-license and supermarket sales are increasing at a rapid rate. This is expected to boost the demand for larger in the United Kingdom, with sales rising at a CAGR of 3% in the coming decade.
Principal Consultant
Premium Segment to Account for a Significant Share in Lager Market
Increasing premiumization of items is driving the demand for a premium lager, as per the study. Hence, vendors are focusing on developing their brand presence and introducing premium products.
Brewers are attempting to push high-end products in order to entice customers to spend more money. Further, growing demand for premium/super-premium lager is driving the expansion of the market.
Manufacturers have also adopted new market tactics and imaginative packaging to woo consumers. One of the key reasons driving the premium lagers market's rise over the last five years has been the growing number of specialized stores and shops, boosting the accessibility and availability of premium lagers.
According to FMI, the glass segment earned a substantial proportion of the global lager market in 2022 and is likely to maintain its market dominance over the projection period 2023 to 2033.
Glass bottles are widely utilized for premium larger packaging. The glass bottle attracts more attention and gives the container a more attractive appearance due to its design and color.
Additionally, some bottles are brown, while others are green. These colors are used in packaging for a variety of reasons, including making the larger look more appealing and guaranteeing product consistency.
In terms of sales channels, while the demand from online retail stores burgeoned, the sales of lager via offline retail stores are expected to gain momentum over the coming years. According to FMI, the segment is likely to grow at a CAGR of 3.7% during the forecast period.
The global lager market is expected to be consolidated with the presence of several leading players in the market. Key players are focusing on adopting marketing strategies such as influencer marketing and brand endorsement to gain a competitive edge.
Some of the players are opting for collaboration and mergers to expand their product portfolios and strengthen their presence in the industry.
For instance
Anheuser-Busch Companies, Diageo Plc, and Heineken N.V.- Top 3 Brewers’ Name in Every Millennials Lingo!
Anheuser-Busch Companies, Diageo Plc, and Heineken N.V. continue to make headways in the larger space. Anheuser-Busch, a subsidiary of Anheuser-Busch InBev, is one of the largest brewing companies in the USA.
The company has a strong presence in the lager category through the brands Budweiser and Landshark Lager. After a massive USD 100 billion merger with SABMiller in 2016, Anheuser-Busch has further strengthened its position. The new entity trades by the name of NewbelcoSABMiller.
Anheuser-Busch has a robust supply chain and distribution channels globally. In the USA alone, the company has operated 13 breweries. The company continues to maintain a strong focus on its distribution channels.
For example, in February 2021, the company announced an investment of USD 1 billion into the USA supply chain. The company also announced that USD 450 million will be spent on domestically-grown raw materials to further boost its position in the lager space.
Headquartered in London, Diageo Plc operates from 132 sites all around the globe. After Kweichow Moutai of China, Diageo Plc is the second largest distiller in the world. A key strategy of Diageo in the lager alcoholic beverages category is to offer its products at various price points.
The company has a robust manufacturing strategy and it collaborates with local manufacturers to include locally-sourced ingredients in its offerings. The company also has a strong presence in Africa and generates over 12% of its net sales from the region.
With a strong focus on the African region, Diageo Plc has remained one of the front-runners in Central and Eastern Europe by tying up with players with large distribution networks.
For example, in November 2021, Diageo partnered with Molson Coors to distribute its beer portfolio in Central and Eastern Europe. The company’s beer portfolio includes famous brands such as Guinness (stout), Kilkenny (ale), and Hop House 13 (lager).
Further, Heineken N.V. is a well-known brand when it comes to alcohol. A manufacturer of the popular Heineken Lager Beer, the company has managed to retain its dominance through its premium quality lager.
Headquartered in the Netherlands, Heineken has over 165 breweries around the globe and operates in over 70 countries. Heineken International holds a wide portfolio of over 170 beer brands which are mainly pale lager. The company continues to focus on widening its portfolio and catering to a broad audience through the launch of new products.
For example, in July 2022, the company launched a new lager Heineken Silver with reduced alcohol content to tap into the growing demand for mild lagers.
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| Attribute | Details |
|---|---|
| Expected Market Size (2023) | USD 380.73 billion |
| Projected Market Projected Size (2033) | USD 512.26 billion |
| Value CAGR (2023 to 2033) | 3.1% |
| Forecast Period | 2023 to 2033 |
| Historical Data Available for | 2018 to 2022 |
| Market Analysis | USD billion for Value and billion. Sq. M. for Volume |
| Key Regions Covered | North America; Latin America; Europe; East Asia; South Asia; and the Middle East & Africa |
| Key Countries Covered | USA, Brazil, Mexico, Germany, United Kingdom, China, India, Japan, Australia, and GCC Countries |
| Key Segments Covered | Variety, Product Type, Packaging Type, End-Use, Sales Channel, Region |
| Key Companies Profiled | Anheuser-Busch Companies LLC; Asahi Breweries Ltd.; Carlsberg Breweries A/S; China Resources Beer (Holdings) Company Limited; Diageo Plc; Heineken N.V.; Kirin Brewery Company Limited; Molson Coors Beverage Company; Tsingtao Brewery Company Limited; United Breweries Holdings Limited; Founders Hill Brewing Co. LLC; Lakefront Brewery Inc; Anchor Brewing Co. LLC; Squatters Pubs and Craft Beers; Sierra Nevada Brewing Company; The Boston Beer Company |
| Report Coverage | Market Forecast, Company Share Analysis, Competition Intelligence, Drivers, Restraints, Opportunities and Threats Analysis, Market Dynamics and Challenges, and Strategic Growth Initiatives |
During 2018 to 2022, the market registered a CAGR of 1.8%.
The glass segment earned a substantial proportion of the global lager market.
The invention of unique flavors like cheese, apple, etc. is the top trend in the market.
The United States dominates this industry with its lucrative opportunities.
The market is likely to surpass USD 512.26 billion in 2033.
1. Executive Summary 2. Market Overview 3. Market Background 4. Global Market Analysis 2018 to 2022 and Forecast, 2023 to 2033 5. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Variety 5.1. Pale 5.2. Vienna 5.3. Dark 6. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Product Type 6.1. Standard 6.2. Premium 6.3. Luxury 7. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Packaging Type 7.1. Glass 7.2. Metal Can 7.3. Others 8. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By End Use 8.1. HoReCa 8.2. Household Retail 8.3. Others 9. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Sales Channel 9.1. B2B 9.2. B2C 9.2.1. Modern Trade 9.2.2. Traditional Liquor Stores 9.2.3. Specialty Stores 9.2.4. Online Retail 9.2.5. Other Retail Formats 10. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Region 10.1. North America 10.2. Latin America 10.3. Western Europe 10.4. Eastern Europe 10.5. South Asia and Pacific 10.6. East Asia 10.7. Middle East and Africa 11. North America Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 12. Latin America Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 13. Western Europe Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 14. Eastern Europe Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 15. South Asia and Pacific Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 16. East Asia Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 17. Middle East and Africa Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 18. Key Countries Market Analysis 19. Market Structure Analysis 20. Competition Analysis 20.1. Anheuser-Busch Companies LLC 20.2. Asahi Breweries Ltd. 20.3. Carlsberg Breweries A/S 20.4. China Resources Beer (Holdings) Company Limited 20.5. Diageo Plc 20.6. Heineken N.V. 20.7. Kirin Brewery Company Limited 20.8. Molson Coors Beverage Company 20.9. Tsingtao Brewery Company Limited 20.10. United Breweries Holdings Limited 20.11. Founders Hill Brewing Co. LLC 20.12. Lakefront Brewery Inc 20.13. Anchor Brewing Co. LLC 20.14. Squatters Pubs and Craft Beers 20.15. Sierra Nevada Brewing Company 20.16. The Boston Beer Company 21. Assumptions & Acronyms Used 22. Research Methodology
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