Market Introduction

The global craft beer market was valued at USD 86 billion in 2024 and grew at a CAGR of 7% from 2025 to 2034. The market is expected to reach USD 169.17 billion by 2034. The demographic changes and evolving tastes and preferences of consumers will drive the growth of the global craft beer market.

Craft beer means small breweries produce it, focusing on better taste and the traditional approach, instead of making it in enormous quantities. Being different from large beer companies, craft breweries strive for new ideas, originality and often use regional ingredients for their brews. As a result of their dedication, brewers create many styles of beer, including hoppy IPAs, rich and strong stouts, crisp lagers and sour ales, with unique flavours and aromas. At the end of the 20th century, as consumers got bored with mainstream, uninteresting beers, they started supporting craft beer instead. Having access to special ingredients means craft brewers can make their beers richer and more complex. Numerous craft breweries mix ingredients like fruits, spices and herbs, helping beer develop new and interesting flavours. Craft beer is largely known for the fact that it is usually made in small batches. Craft brewers control the quality well by manufacturing just a few batches at a time and also respond quickly to the most recent tastes and preferences. Craft beer has boosted the economy by creating new jobs and buying local ingredients for its brewing. In short, craft beer features different, interesting and well-crafted beers, celebrating tradition, creativity and supporting its local communities.

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Recent Development

• Dust Bowl Brewing has introduced a new offering in their Big Beer Series, which is arriving at California retailers and can be enjoyed at its freshest in the brewery’s taprooms located in Turlock, Livermore, Monterey, and Elk Grove.  Designed for the intrepid beer enthusiast, Dust Bowl Fruit Fist is an Imperial IPA with a hefty 10.4% ABV that delivers a juicy explosion on the palate akin to a “fist full of mangos.”

Market Dynamics

Drivers

The rising innovation, creativity and enhanced production capabilities of craft breweries – Internal factors driving the demand for craft beer are largely rooted in the breweries’ own practices and capabilities, which set them apart from large-scale commercial beer producers. One of the most significant internal factors is innovation and product diversification. Craft breweries are known for their creative approach, constantly experimenting with new beer styles, unique flavour combinations, and brewing techniques. This innovation keeps the market dynamic and attracts consumers eager to try something different from the standard beer offerings. By releasing seasonal batches, limited editions, and collaborations, craft brewers create excitement and foster consumer loyalty. Craft brewers prioritize high-quality ingredients such as specialty malts, unique hop varieties, and carefully selected yeast strains. This attention to detail and dedication to traditional brewing methods result in richer, more complex beers that appeal to discerning palates. Unlike mass-produced beers, craft beer offers a wide variety of taste profiles catering to diverse consumer preferences. Additionally, many craft breweries focus heavily on local sourcing and community engagement. By using locally grown ingredients and supporting regional farmers, they reinforce their commitment to sustainability and freshness. This local emphasis resonates with consumers who prefer to support independent, community-based businesses. Breweries also often host events, tastings, and tours, fostering a personal connection with their customers. This community-centric approach builds strong brand loyalty and positions craft beer as more than just a beverage but as part of a broader cultural experience.

Restraints

Higher price point of craft beers – One significant limitation is the higher price point of craft beers. Due to the use of premium ingredients, small-batch production, and artisanal brewing processes, craft beers typically cost more than mass-produced beers. This higher price can deter price-sensitive consumers or those in markets with lower disposable incomes, restricting the customer base. Another key internal factor is inconsistent quality and limited brand recognition. Smaller breweries may struggle to maintain consistent quality across batches due to limited resources and varying production conditions, which can reduce consumer confidence and discourage repeat purchases. Moreover, many craft breweries lack widespread brand awareness beyond their local or regional markets. This limited recognition makes it harder for them to attract new customers in broader markets, especially when competing against well-established beer brands. Additionally, limited distribution and availability pose a challenge. This limited reach can reduce accessibility for consumers outside urban centres or craft beer hubs. Together, these factors—higher costs, quality consistency issues, restricted brand presence, and limited distribution—pose substantial barriers for craft breweries in expanding their market share and fully capitalizing on the growing interest in craft beer.

Opportunities

The changing tastes and preferences of the contemporary demographic – Market trends and how people’s tastes change contribute much to the increase in craft beer demand. Changes in what people like to buy are a main factor for any company. Nowadays, many consumers want to try beers with authentic, tasty and high-quality flavours instead of those produced in a uniform taste. Because of this trend, craft beer has become popular since people are now searching for drinks with deeper, richer tastes. Changes in the population impact the way the craft beer market operates. Millennials and Gen Z prefer to buy products that are high-quality, different from the usual and easily personalized. Increased understanding of beer and its culture among consumers is also a significant factor. Beer festivals, sampling events, social media and online groups have educated people more about a variety of beers and their methods of production. As people learn more, they become more interested in craft beer, pushing demand for it. Moreover, what is popular in health and wellness can sway the way people make purchasing decisions. Many who drink alcohol prefer beers that seem more natural and unprocessed and are now also paying attention to low-alcohol, gluten-free and organic craft beers for a healthier life. In addition, more people can afford to purchase craft beer as they earn more money and choose premium products.

Segment Analysis

Regional segmentation analysis

The regions analyzed for the market include North America, Europe, South America, Asia Pacific, the Middle East, and Africa. North America emerged as the most significant global craft beer market, with a 40% market revenue share in 2024.

In the late 20th century, the US became known as the origin of today’s craft beer movement, as more beer lovers looked for brews other than popular mainstream brands. Because it was adopted early, North America created a lively culture of craft beer, including many little breweries, lots of different types of beer and beer-lovers who admired locally made beers. North America’s strong influence is thanks in part to their vibrant entrepreneurship and helpful laws that have made it possible for thousands of craft breweries to grow in the region. Many governments have made it less challenging for small breweries to get a license and pay taxes. Moreover, drinking from small breweries at festivals, joining clubs and visiting taprooms have encouraged customers to learn and appreciate different craft beers. Having a large, well-off population is very significant as well.

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• The annual craft beer celebration organized by the Brewers Association (BA), American Craft Beer Week (ACBW), marked the beginning of beer season.  American Craft Beer Week, which took place from May 12 to 18, 2025, reminded us that breweries are lively centres of community life.  In 2024, there were 9,976 operational craft breweries in the U.S. that employed a workforce of 197,000 individuals.  The majority of Americans reside within a 10-mile radius of a craft brewery.  This festivity transcends beer, mirroring consumer curiosity about novel flavour profiles and drink alternatives.  To attract a broader clientele, numerous breweries have adjusted their offerings to include an array of distinctive beer styles as well as non-beer drinks such as cider, seltzer, and alcohol-free alternatives.

Product Type Segment Analysis

The product type segment is divided into ale, lager and others. The ale segment dominated the market, with a market share of around 42% in 2024. Ale stands out globally in craft beer due to its delicious breadth, strong taste and attraction to those interested in thirst-quenching beers. Unlike lagers which give a subtle and crisp taste, ales are friendly for those enjoying a fuller taste, strong flavours and a variety of aromas. The reason for so much variety is that ale yeasts work best when exposed to warm environments. India Pale Ale, also known as IPA, is now a famous style of ale for many and often considered the main style of craft beer. Moreover, beer cultures in countries such as North America and Europe make ales particularly popular. Since creativity and quality are important in the craft beer market, ales suit it perfectly. Several types of flavour, endless new ideas and consumer liking make ales, especially IPAs, the most popular beers around the world.

• Recently, with support from both sides of the aisle and both chambers of Congress, Representatives Darin LaHood, Steven Horsford, Suzan DelBene, and Claudia Tenney introduced the Creating Hospitality Economic Enhancement for Restaurants and Servers (CHEERS) Act (H.R.3325/S.1732), along with Senators Tim Sheehy and Maggie Hassan.  This crucial law offers focused tax relief to establishments such as bars, restaurants, taprooms, and entertainment venues equipped with draft beer systems. This support aids the hospitality industry in reinvesting in local businesses and their staff.

Packaging type Segment Analysis

The packaging type segment is divided into bottles, cans and kegs. The bottles segment dominated the market, with a market share of around 45% in 2024. Traditionally, the majority of craft beers are sold in bottles as they are considered handy and preferred by consumers. The main reason these brands are dominating is because most consumers are familiar with them and they’re convenient. It has been common for many years to drink beer from glass bottles and many people view them as a sign of quality. The transparent nature of bottles allows people to see the beer which is an appealing factor for several consumers. Shopkeepers and customers prefer bottles because they are simple to manage, store and aesthetic when put on display. Additionally, there are several sizes available, each made to suit refrigerators and beer coolers, so drinking from a bottle is easy at home as well. Limited-edition and specialty craft beers are most often bottled because the bottles are associated with premium quality. Furthermore, keeping beer in bottles can prevent light exposure, as this can cause a change in flavour. This is especially essential for beers with few hops or odd ingredients that get affected by the sun.

Distribution channel Segment Analysis

The distribution channel segment is divided into on-trade and off-trade. The on-trade segment dominated the market, with a market share of around 58% in 2024. People enjoy drinking craft beer at bars, pubs, restaurants and breweries’ taprooms, giving the on-trade distribution channel an advantage in sales due to its friendly and engaging environment. Enjoying craft beer means also being part of a movement that emphasizes trying new things, socializing and enjoying diversity. On-trade places give consumers an opportunity to enjoy a range of craft beers, with the help of staff who can suggest the best ones to try and what to pair them with. Many people are attracted to craft beer due to the chance to taste new varieties on tap, as these are rarely available at stores. Many small breweries support the on-trade by raising taprooms or brewpubs, where they can interact with clients and promote their products. They help create a link between the brewery and the audience by hosting community events, beer celebrations and gatherings. While it is now simpler for many to buy craft beer at home or online, enjoying them in bars still appeals to people since the on-trade offers a special opportunity to drink fresh and uncommon beers while sharing and discussing them with others.

• Red Rhino, a prominent player in India's craft beer market, has unveiled its new commercial brewery in Malur, representing a major advance in its foray into kegging operations.  This achievement puts Red Rhino in a leading position for craft beer distribution, enhancing the availability of its premium beverages at top venues throughout Bangalore.  The Malur facility will start by distributing Red Rhino’s best-selling products, such as its Signature Lager and Hefeweizen, along with fresh releases and seasonal offerings.

Some of the Key Market Players

• Ballast Point Brewing Company
• Boston Beer Company (Samuel Adams)
• BrewDog
• Brooklyn Brewery
• Camden Town Brewery
• Deschutes Brewery
• Dogfish Head Craft Brewery
• Goose Island Beer Company
• Lagunitas Brewing Company
• New Belgium Brewing Company
• Sierra Nevada Brewing Co.
• Stone Brewing

Report Description

• Market Introduction
• Market Dynamics
• Segment Analysis
• Some of the Key Market Players