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    Craft Beer Market

    ID: MRFR/F-B & N/0467-HCR
    128 Pages
    Snehal Singh
    October 2025

    Craft Beer Market Research Report By Product Type (Ale, Lager, Stout, Porter, Wheat Beer), By Alcohol Content (Low Alcohol, Standard Alcohol, High Alcohol), By Packaging (Bottles, Cans, Kegs), By Distribution Channel (On-trade, Off-trade, E-commerce), and By Regional (North America, Europe, South America, Asia Pacific, Middle East and Africa) - Forecast to 2035

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    Craft Beer Market Infographic

    Craft Beer Market Summary

    As per MRFR analysis, the Craft Beer Market Size was estimated at 108.8 USD Billion in 2024. The Craft Beer industry is projected to grow from 122.22 USD Billion in 2025 to 390.99 USD Billion by 2035, exhibiting a compound annual growth rate (CAGR) of 12.33 during the forecast period 2025 - 2035.

    Key Market Trends & Highlights

    The Craft Beer Market is experiencing dynamic growth driven by innovation and changing consumer preferences.

    • Sustainability initiatives are increasingly influencing production practices in the North American craft beer sector.
    • Flavor innovation continues to captivate consumers, particularly in the Asia-Pacific region, where unique taste profiles are gaining traction.
    • The Ale segment remains the largest in the market, while Stouts are emerging as the fastest-growing category.
    • The rise of craft breweries and a consumer preference for quality are key drivers propelling market expansion.

    Market Size & Forecast

    2024 Market Size 108.8 (USD Billion)
    2035 Market Size 390.99 (USD Billion)
    CAGR (2025 - 2035) 12.33%

    Major Players

    Anheuser-Busch InBev (BE), Molson Coors Beverage Company (US), Heineken N.V. (NL), Diageo plc (GB), Boston Beer Company (US), Sierra Nevada Brewing Co. (US), Stone Brewing (US), Lagunitas Brewing Company (US), New Belgium Brewing Company (US)

    Craft Beer Market Trends

    The Craft Beer Market is currently experiencing a dynamic evolution, characterized by a growing consumer preference for unique and artisanal beverages. This shift appears to be driven by an increasing desire for authenticity and quality, as consumers seek out distinctive flavors and local brewing traditions. The rise of craft breweries has fostered a vibrant community, where innovation and creativity thrive. As a result, the market is witnessing a diversification of offerings, with brewers experimenting with various ingredients and brewing techniques to cater to diverse palates. Furthermore, the emphasis on sustainability and local sourcing is becoming more pronounced, as environmentally conscious consumers gravitate towards brands that align with their values. In addition to flavor innovation, the Craft Beer Market is also seeing a notable increase in the popularity of craft beer among younger demographics. This trend suggests that younger consumers are more inclined to explore craft options, often favoring them over traditional mass-produced beers. The social aspect of craft beer consumption, often enjoyed in communal settings such as taprooms and festivals, further enhances its appeal. As the market continues to evolve, it is likely that the emphasis on community engagement and experiential marketing will play a crucial role in shaping future growth and consumer loyalty.

    Sustainability Initiatives

    Craft breweries are increasingly adopting sustainable practices, focusing on eco-friendly production methods and local sourcing of ingredients. This trend reflects a growing consumer demand for environmentally responsible products, as breweries aim to reduce their carbon footprint and promote community engagement.

    Flavor Innovation

    The Craft Beer Market is marked by a surge in flavor experimentation, with brewers exploring unconventional ingredients and brewing techniques. This trend caters to adventurous consumers seeking unique taste experiences, thereby fostering a culture of creativity within the industry.

    Demographic Shifts

    Younger consumers are becoming a significant force in the Craft Beer Market, showing a preference for artisanal options over traditional beers. This demographic shift indicates a potential for long-term growth, as younger drinkers prioritize quality and authenticity in their beverage choices.

    The craft beer market continues to evolve, reflecting a growing consumer preference for unique flavors and local production, which may reshape the landscape of the beverage industry.

    U.S. Alcohol and Tobacco Tax and Trade Bureau (TTB)

    Craft Beer Market Drivers

    E-commerce Growth

    The Craft Beer Market is experiencing a significant transformation due to the rise of e-commerce platforms. With the increasing popularity of online shopping, craft breweries are leveraging digital channels to reach a broader audience. This trend is evidenced by the growing number of breweries that offer direct-to-consumer sales through their websites and third-party platforms. E-commerce not only provides convenience for consumers but also allows craft breweries to showcase their unique offerings to a global audience. As of 2023, online sales of craft beer have seen a substantial increase, indicating a shift in consumer purchasing behavior. This growth in e-commerce is likely to continue, reshaping the distribution landscape of the Craft Beer Market.

    Health Consciousness

    The Craft Beer Market is witnessing a growing trend towards health consciousness among consumers. As individuals become more aware of their dietary choices, there is an increasing demand for craft beers that offer lower calorie and gluten-free options. This shift is reflected in the introduction of various health-oriented craft beer products, which cater to consumers seeking to enjoy beer without compromising their health goals. Additionally, the rise of organic and natural ingredients in brewing aligns with this health trend, as consumers gravitate towards products perceived as healthier. This focus on health and wellness is likely to shape the future offerings within the Craft Beer Market, as breweries adapt to meet the evolving preferences of health-conscious consumers.

    Experiential Marketing

    Experiential marketing is becoming a pivotal driver in the Craft Beer Market, as breweries seek to create memorable experiences for consumers. This approach involves engaging customers through events, tastings, and brewery tours, which foster a deeper connection between the brand and its audience. Data suggests that breweries that invest in experiential marketing see higher customer loyalty and brand recognition. As consumers increasingly seek out experiences over products, craft breweries are capitalizing on this trend by offering unique events that highlight their brewing processes and product offerings. This focus on experiential marketing not only enhances brand visibility but also contributes to the overall growth of the Craft Beer Market, as it encourages consumers to explore and appreciate the craft behind their favorite beers.

    Rise of Craft Breweries

    The Craft Beer Market experiences a notable increase in the number of craft breweries, which has surged significantly over the past decade. As of 2023, there are over 8,000 craft breweries operating, a figure that continues to grow. This proliferation of breweries fosters competition and innovation, leading to a diverse range of flavors and styles. The rise of local breweries also enhances community engagement, as consumers increasingly prefer to support local businesses. This trend is likely to continue, as new entrants into the market seek to capitalize on the growing consumer interest in unique and artisanal products. The Craft Beer Market is thus characterized by a dynamic landscape where new players contribute to the overall growth and evolution of craft beer offerings.

    Consumer Preference for Quality

    In the Craft Beer Market, there is a discernible shift in consumer preferences towards high-quality, artisanal products. Consumers are increasingly willing to pay a premium for craft beers that offer unique flavors and brewing techniques. This trend is supported by data indicating that craft beer sales have outpaced those of mass-produced beers, with craft beer accounting for approximately 25% of the total beer market share in 2023. This preference for quality over quantity suggests that consumers are becoming more discerning, seeking out brands that emphasize craftsmanship and authenticity. As a result, craft breweries are focusing on quality ingredients and innovative brewing methods to meet this demand, further solidifying their position in the Craft Beer Market.

    Market Segment Insights

    By Type: Ale (Largest) vs. Stout (Fastest-Growing)

    The Craft Beer Market is heavily influenced by its diverse types, with Ale leading the segment in both popularity and market share. This variety encompasses several subcategories including Pale Ale, India Pale Ale (IPA), and Amber Ale, appealing to a wide range of consumer preferences. Ale has established itself as the preferred choice among craft beer enthusiasts, contributing significantly to the overall market dynamics. In contrast, Stout is defined by its rich and complex flavors, often enhanced by unique brewing methods and diverse ingredients, making it increasingly popular with a niche yet growing audience within the craft beer community.

    Ale (Dominant) vs. Stout (Emerging)

    Ale has long held its position as the dominant type within the Craft Beer Market, characterized by its versatility and strong flavor profiles that cater to various palates. With its broad appeal, Ale encompasses styles such as IPA and Pale Ale, which are often favored for their aromatic and hoppy characteristics. On the other hand, Stout, marked by its dark appearance and robust taste, is emerging in popularity due to the rise of craft brewers experimenting with innovative ingredients and brewing techniques. This growing interest in Stout is driven by consumers seeking unique and artisanal flavors that stand out in a crowded market, appealing particularly to those who enjoy a richer beer experience.

    By Alcohol Content: Standard Alcohol (Largest) vs. High Alcohol (Fastest-Growing)

    In the Craft Beer Market, the distribution of alcohol content reveals that Standard Alcohol offerings dominate with the largest share. This segment caters widely to consumer preferences for balance, flavor, and accessibility, making it the staple of many craft breweries. Meanwhile, the Low Alcohol segment has seen a gradual increase, appealing to health-conscious consumers, but it remains overshadowed by the significant presence of Standard Alcohol.

    Low Alcohol (Emerging) vs. High Alcohol (Dominant)

    The Low Alcohol segment in the craft beer market is emerging as consumers become more health-conscious and seek lower-calorie alcoholic options. This trend is driven by a growing emphasis on wellness and moderation among drinkers, particularly younger demographics. Conversely, the High Alcohol segment has established itself as a dominant player, attracting adventurous drinkers looking for intense flavors and higher alcohol content. This segment is fortified by innovative brewing techniques and a desire for unique beer experiences, making it a focal point for craft breweries aiming to differentiate their offerings.

    By Packaging: Bottles (Largest) vs. Cans (Fastest-Growing)

    In the Craft Beer Market, packaging plays a crucial role in consumer preferences and purchasing decisions. Bottles currently dominate the packaging landscape, accounting for a significant share of the market. However, cans are rapidly gaining traction among craft breweries and consumers alike, driven by innovative designs and convenience. The growth in the cans segment is also supported by the lightweight nature and recyclability of aluminum, making them more environmentally friendly compared to traditional glass bottles.

    Bottles (Dominant) vs. Cans (Emerging)

    Bottles have long been the staple packaging choice for craft beer producers, often associated with higher quality perceptions and traditional brewing practices. They provide an excellent barrier to UV light and help maintain the beer's flavor integrity, contributing to their dominance in the market. In contrast, cans have emerged as a popular alternative, especially among younger consumers. With their portability and ability to chill quickly, cans are facilitating the craft beer trend in outdoor and casual drinking settings. Additionally, the growing emphasis on sustainability has led many breweries to adopt cans for their ease of recycling, making both options relevant yet distinct in consumer preferences.

    By Distribution Channel: On-trade (Largest) vs. E-commerce (Fastest-Growing)

    The distribution of the craft beer market reveals a clear dominance of the On-trade segment, which includes bars, pubs, and restaurants. This segment caters to consumers seeking social experiences, pairing craft beer with food and events. On-trade sales thrive on consumer preferences for unique flavors and local brews, highlighting the importance of atmosphere and service in driving sales. Meanwhile, the Off-trade segment, encompassing retail stores and supermarkets, represents a significant portion of the market but does not outshine the On-trade in terms of direct consumer interaction and experiential selling. On the other hand, E-commerce is rapidly becoming a critical channel for craft beer sales, particularly among younger consumers who prefer the convenience of online shopping. This segment's growth is driven by shifts in consumer behavior, particularly during the pandemic, which accelerated the adoption of online shopping. The rise of subscription services and direct-to-consumer sales has further fueled this trend, as brands leverage digital platforms to reach wider audiences and tap into the growing demand for craft products. The competition among e-commerce platforms is also increasing, leading to better pricing and promotional offers for consumers.

    On-trade (Dominant) vs. E-commerce (Emerging)

    The On-trade segment remains the dominant force in the craft beer market, known for its ability to create memorable experiences around beer consumption. Establishments such as craft breweries, taprooms, and bars focus on customer engagement, offering beer tastings, food pairings, and events that enhance brand loyalty. This environment not only fosters community connections but also enables brands to effectively showcase their latest offerings. The On-trade also benefits from consumer preference for fresh and locally sourced products. In contrast, E-commerce is an emerging segment that is gaining traction due to the changing shopping habits of consumers who prioritize convenience. Online platforms enable consumers to explore a wide variety of craft beers, many of which may not be readily available in local stores. This channel supports the direct relationship between producers and consumers, providing opportunities for breweries to market their unique products directly to consumers while bypassing traditional retail chains.

    Get more detailed insights about Craft Beer Market

    Regional Insights

    North America : Craft Beer Capital of the World

    North America remains the largest market for craft beer, accounting for approximately 40% of the global market share. The region's growth is driven by increasing consumer preference for unique flavors and local products, alongside supportive regulations that encourage small breweries. The U.S. leads this market, followed closely by Canada, which holds about 10% of the market share. The craft beer segment is bolstered by a growing trend towards artisanal and locally sourced beverages. The competitive landscape in North America is vibrant, with key players like Anheuser-Busch InBev, Boston Beer Company, and Sierra Nevada Brewing Co. dominating the scene. The presence of numerous microbreweries and craft beer festivals fosters innovation and consumer engagement. The region's regulatory environment supports craft brewing, with many states offering tax incentives and grants to small breweries, further enhancing market growth.

    Europe : Emerging Craft Beer Hub

    Europe is witnessing a significant rise in the craft beer market, currently holding about 30% of the global share. The growth is fueled by changing consumer preferences towards premium and locally produced beverages, alongside favorable regulations that support small breweries. Germany and the UK are the largest markets in Europe, with Germany accounting for approximately 12% and the UK for around 8% of the market share. This trend is expected to continue as consumers seek diverse and innovative beer options. Leading countries in Europe are characterized by a robust competitive landscape, with notable players like Heineken N.V. and Diageo plc. The craft beer scene is thriving, with numerous local breweries emerging, particularly in Germany, the UK, and the Netherlands. The European market is also supported by various craft beer festivals and events that promote local brews, enhancing consumer awareness and engagement. The European Commission emphasizes the importance of supporting small and medium-sized enterprises in the brewing sector.

    Asia-Pacific : Emerging Powerhouse in Brewing

    The Asia-Pacific region is rapidly emerging as a significant player in the craft beer market, currently holding about 20% of the global share. The growth is driven by increasing disposable incomes, urbanization, and a shift in consumer preferences towards premium and unique beverages. Countries like China and Japan are leading this trend, with China accounting for approximately 10% of the market share, reflecting a growing interest in craft beer among younger consumers seeking diverse flavors. The competitive landscape in Asia-Pacific is evolving, with both local and international players entering the market. Key players include local breweries and international giants like Molson Coors Beverage Company. The region is witnessing a surge in craft beer festivals and events, which are crucial for promoting local brands and educating consumers about craft beer. Regulatory support is also increasing, with governments recognizing the economic potential of the craft brewing industry.

    Middle East and Africa : Untapped Potential in Brewing

    The Middle East and Africa region is gradually emerging in the craft beer market, currently holding about 10% of the global share. The growth is driven by changing consumer attitudes towards alcohol consumption and a rising interest in craft beverages. Countries like South Africa and Kenya are at the forefront, with South Africa accounting for approximately 5% of the market share. The region's craft beer scene is still developing, but there is significant potential for growth as more consumers seek unique and locally produced options. The competitive landscape is characterized by a mix of local breweries and international brands entering the market. Key players are beginning to establish a presence, and local craft breweries are gaining popularity. The region is also seeing an increase in craft beer festivals, which help to promote local brands and educate consumers. Regulatory frameworks are evolving, with some countries beginning to support the craft brewing industry through favorable policies and incentives.

    Key Players and Competitive Insights

    The Craft Beer Market is currently characterized by a dynamic competitive landscape, driven by a blend of innovation, regional expansion, and strategic partnerships. Major players such as Anheuser-Busch InBev (BE), Molson Coors Beverage Company (US), and Boston Beer Company (US) are actively reshaping their operational focus to adapt to evolving consumer preferences. Anheuser-Busch InBev (BE) has been particularly aggressive in its approach to innovation, launching a series of new craft-style beers aimed at attracting younger demographics. Meanwhile, Molson Coors Beverage Company (US) has emphasized sustainability in its operations, integrating eco-friendly practices into its brewing processes. Boston Beer Company (US) continues to leverage its strong brand identity while exploring new market segments, particularly in the hard seltzer category, which complements its craft beer offerings. Collectively, these strategies contribute to a competitive environment that is increasingly focused on differentiation through quality and brand loyalty.

    The Craft Beer Market exhibits a moderately fragmented structure, with numerous small and medium-sized breweries competing alongside larger corporations. Key business tactics such as localizing manufacturing and optimizing supply chains are becoming increasingly prevalent. For instance, many companies are establishing regional breweries to reduce transportation costs and enhance freshness, thereby appealing to local consumer bases. This localized approach not only strengthens brand loyalty but also allows for greater responsiveness to market trends, further intensifying competition among key players.

    In August 2025, Heineken N.V. (NL) announced a strategic partnership with a prominent local brewery in the Pacific Northwest, aiming to enhance its craft beer portfolio. This collaboration is significant as it allows Heineken to tap into the growing craft beer segment while leveraging the local brewery's established market presence and consumer loyalty. Such partnerships are indicative of a broader trend where larger corporations seek to integrate local flavors and brewing techniques into their offerings, thereby enriching their product lines and appealing to craft beer enthusiasts.

    In September 2025, Sierra Nevada Brewing Co. (US) launched a new line of organic beers, reflecting a growing consumer demand for sustainable and health-conscious options. This initiative not only aligns with current market trends but also positions Sierra Nevada as a leader in the organic craft beer segment. The strategic importance of this move lies in its potential to attract environmentally conscious consumers, thereby expanding the company's market share in a competitive landscape increasingly focused on sustainability.

    In October 2025, Lagunitas Brewing Company (US) unveiled a digital platform aimed at enhancing customer engagement through personalized experiences and direct-to-consumer sales. This digital transformation is crucial as it allows Lagunitas to gather valuable consumer insights and tailor its offerings accordingly. The integration of technology into the craft beer experience signifies a shift towards more interactive and consumer-centric business models, which could redefine competitive dynamics in the market.

    As of October 2025, the Craft Beer Market is witnessing a convergence of trends such as digitalization, sustainability, and the integration of artificial intelligence in operations. Strategic alliances are increasingly shaping the competitive landscape, enabling companies to pool resources and expertise to innovate more effectively. Looking ahead, competitive differentiation is likely to evolve from traditional price-based competition to a focus on innovation, technology, and supply chain reliability. This shift underscores the importance of adaptability and responsiveness in a market that continues to evolve rapidly.

    Key Companies in the Craft Beer Market market include

    Industry Developments

    In June 2025, a number of craft breweries in Texas, including Copperhead Brewery, North Shepherd Brewing, and Elder Son Brewing in the Houston area, announced closures within three weeks. This was part of a nationwide trend that saw more craft brewery closures than openings in 2024.

    Post-COVID hospitality challenges have been made worse by rising input costs brought on by tariffs and inflation, as well as shifting consumer preferences toward cannabis and more family-friendly venues.

    In an effort to improve local distribution and long-term sustainability, San Francisco's Fort Point Beer Co. and Santa Rosa's HenHouse Brewing Co. merged 50/50 in April 2025 to create Fort Point HenHouse, which consolidated production in Santa Rosa while preserving both brand identities and keeping 61 of 62 jobs.

    Also in June 2025, Athletic Brewing Company—specializing in non‑alcoholic craft beer—expanded its U.S. footprint by acquiring two former Ballast Point facilities in San Diego, making it the world’s largest non‑alcoholic brewery; the expansion supports double‑digit growth and aligns with rising demand for non‑alcoholic options amid a broader decline in traditional craft beer consumption.

    Despite a pre-tax loss of £59 million in 2024, adjusted earnings reached £7.5 million, which led to investments in employee well-being, including leadership restructuring and mental health training for staff. In the meantime, BrewDog halted its planned IPO in May 2025 in order to refocus on profitable growth and a revamped corporate culture.

    Future Outlook

    Craft Beer Market Future Outlook

    The Craft Beer Market is projected to grow at a 12.33% CAGR from 2024 to 2035, driven by consumer demand for unique flavors, local sourcing, and innovative brewing techniques.

    New opportunities lie in:

    • Expansion into non-alcoholic craft beer segments
    • Development of subscription-based craft beer delivery services
    • Investment in sustainable brewing technologies and practices

    By 2035, the Craft Beer Market is expected to be robust, reflecting dynamic growth and evolving consumer preferences.

    Market Segmentation

    Craft Beer Market Type Outlook

    • Ale
    • Lager
    • Stout
    • Porter
    • Wheat Beer

    Craft Beer Market Packaging Outlook

    • Bottles
    • Cans
    • Kegs

    Craft Beer Market Alcohol Content Outlook

    • Low Alcohol
    • Standard Alcohol
    • High Alcohol

    Craft Beer Market Distribution Channel Outlook

    • On-trade
    • Off-trade
    • E-commerce

    Report Scope

    MARKET SIZE 2024108.8(USD Billion)
    MARKET SIZE 2025122.22(USD Billion)
    MARKET SIZE 2035390.99(USD Billion)
    COMPOUND ANNUAL GROWTH RATE (CAGR)12.33% (2024 - 2035)
    REPORT COVERAGERevenue Forecast, Competitive Landscape, Growth Factors, and Trends
    BASE YEAR2024
    Market Forecast Period2025 - 2035
    Historical Data2019 - 2024
    Market Forecast UnitsUSD Billion
    Key Companies ProfiledMarket analysis in progress
    Segments CoveredMarket segmentation analysis in progress
    Key Market OpportunitiesGrowing consumer preference for unique flavors and local sourcing in the Craft Beer Market.
    Key Market DynamicsRising consumer preference for unique flavors drives innovation and competition among craft breweries.
    Countries CoveredNorth America, Europe, APAC, South America, MEA

    Market Highlights

    Author
    Snehal Singh
    Assistant Manager - Research

    High acumen in analyzing complex macro & micro markets with more than 6 years of work experience in the field of market research. By implementing her analytical skills in forecasting and estimation into market research reports, she has expertise in Packaging, Construction, and Equipment domains. She handles a team size of 20-25 resources and ensures smooth running of the projects, associated marketing activities, and client servicing.

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    FAQs

    What is the current valuation of the Craft Beer Market?

    The Craft Beer Market was valued at 108.8 USD Billion in 2024.

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