Lager Market Analysis

Lager Market Overview

The global Lager market size is projected to reach approximately USD 400 Billion by 2030, at a CAGR of around 3% from 2022 to 2030. An increase in the demand for lagers is due to its growing adoption in bars, hotels and cafeterias among others. As world economies continue to improve and as consumers increase their purchasing power, more and more individuals have the means to purchase a wide variety of goods and services. As a result, consumer preferences for a range of different products and services in emerging markets, including China and India are expected to grow rapidly during the forecast period. Due to this, the global beer-drinking population is on the rise and has been a significant contributor to the recent popularity of this beverage within the industry. Furthermore, technological advancements made to existing production equipment have enabled companies to make lagers of high quality.

COVID-19 Impact Analysis

The impact of COVID-19 has affected negatively not only the distribution and sales in different products across several industries but also hampered the supply of raw materials. Many countries were under lockdown and sealed their borders to control the spread of the virus during the pandemic. The impact on logistics halted supplies of raw materials. This affected the countries whose capacity to produce lagers has been cut in half or more resulting in a shortage of products and a potential price rise. This is overall expected to cause a price rise in products in the short run.

The supply chain for lager beer consists of manufacturers, distributors, and end-users. An outbreak of COVID-19 caused the supply chain to become strained, as many countries have fostered a hostile environment toward outsiders and trade. This pandemic situation has had an enormous effect upon the lager market globally due to both increasing travel restrictions and a weakened global economy. Therefore, investors are struggling to invest. Moreover, the government has imposed additional restrictions on the international movement of goods to help contain the illness. This has led to a significant decrease in global transportation that's happening alongside pandemic. The impact is expected to continue as the global market adjusts, which means there may be shortfalls in supply or unexpected shortages in certain countries even as there are surpluses elsewhere. The adjustments may take place over a period ranging from several months to several years as impacted countries recover and return to normal trade levels.

Market Dynamics

Drivers

• Growing Awareness about the health benefits of lager

Increasing awareness regarding health benefits associated with the product will boost the market growth. Beer has a number of vitamins, proteins, and natural antioxidants with low calories, carbohydrates, and no fat or cholesterol. These nutritional properties help to prevent cardiovascular diseases and support muscle recovery. In addition, they help in improving the cholesterol level and increasing HDL in the body. According to the World Health Organization (WHO), 17.9 million die every year due to cardiovascular diseases (CVDs) globally. Increasing health issues are expected to promote the consumption of lager over the forecast period.

Restraint

• A large number of available substitutes  

The beer industry is highly competitive and the competition is expected to increase in the forecast period. Vodka, whiskey, rum, and gin are commonly substituted with beers due to their low alcohol content. Energy drinks and carbonated drinks are the major substitutes for beer, which are also likely to impact market growth in a negative way. The market for non-alcoholic drinks is expected to grow due to growing health concerns among consumers, and their preference for fewer alcoholic products. Because of the increased competition and changing market dynamics, the demand and growth rate are expected to decrease in the future.

Segment Overview

By Product Type

Based on product type, the global lager market has been divided into premium and standard. The premium segment is projected to be the fastest-growing market during the forecast period. The segment is expected to grow at a high rate due to the variety of products available in the market. An increase in beer consumption is due to its growing adoption in bars, restaurants, and hotels. The industry's increasing demand can be contributed to the changing consumer preferences for premium beers.

By Distribution Channel

By distribution channel, the global lager market has been segmented as on-trade and off-trade. The off-trade distribution channels include supermarkets & hypermarkets, convenience stores, specialty stores, off-licenses, online stores, and others. The off-trade segment is estimated to hold a significant share in the market for the year 2022. Lager beer manufacturers often opt for off-trade distribution channels for the extensive sales of their products.

Regional Analysis

By region, the global lager market has been divided into North America, Europe, Asia-Pacific, and the Rest of the World. Europe accounted for the largest market share in 2021. Asia Pacific is projected to exhibit the highest CAGR during the review period.

Europe

Europe is the largest regional market due to the presence of major players in the region. In Europe, flavored lager is one of the premium drinks in countries including the U.K., Germany, and France. One of the reasons lager is a popular drink in this region is that it varies between countries and has special flavorsa. Furthermore, premium products including lager are attracting new consumers. Product developers in France, Spain, Italy, and Germany, among others, are adding fruit pulp to their lagers to make them more appealing to millennials.

Asia Pacific

Asia Pacific has witnessed an increase in lager consumption as local consumers are beginning to value and seek out beverages that will help them unwind after a day of work. With the increase in disposable income, more varieties of lager brands are being consumed resulting in increased sales for both local and imported lagers. In addition to the increasing demands of the market and tastes of the population, social norms are also changing due to exposure to western culture, which is influencing consumer preferences toward lager over other alcoholic beverages.

Competitive Landscape

The market comprises several global and local players. The tier-1 and tier-2 players have reached across the globe with diverse product portfolios. Companies such as Founders Hill Brewing Co., LLC, Carlsberg A/S, Diageo Plc, Lakefront Brewery Inc, and Anchor Brewing Co. are some of the key players dominating the global lager market due to product differentiation, financial stability, strategic developments, and diversified regional presence. The players are focused on investing in research and development. Furthermore, they adopt strategic growth initiatives, such as expansion, product launches, joint ventures, and partnerships, to strengthen their market position and capture a large customer base.

Prominent players in the global Lager market include Anheuser-Busch InBev, Founders Hill Brewing Co., LLC, Carlsberg A/S, Diageo Plc, Lakefront Brewery Inc, Anchor Brewing Co., LLC, Squatters Pubs and Craft Beers, Sierra Neveda Brewing Company, The Boston Beer Company, and United Breweries Limited., among others.

Scope of the Report

Global Lager Market, by Product Type

• Premium


• Standard

Global Lager Market, by Distribution Channel

• On-Trade


• Off-Trade

Global Lager Market, by Region

• 
  North America
  
  
  
  • US
  
  
  • Canada
  
  
  • Mexico
  
  
  
  


• 
  Europe
  
  
  
  • UK
  
  
  • Germany
  
  
  • France
  
  
  • Italy
  
  
  • Spain
  
  
  • Rest of Europe
  
  
  
  


• 
  Asia-Pacific
  
  
  
  • China
  
  
  • India
  
  
  • Japan
  
  
  • Australia and New Zealand
  
  
  • Rest of Asia-Pacific
  
  
  
  


• 
  Rest of the World
  
  
  
  • South America
  
  
  • Middle East
  
  
  • Africa
  
  
  
  

Objectives of the Study

The objectives of the study are summarized in 5 stages. They are as mentioned below:

To identify and estimate the market size for the global Lager market segmented by product type and distribution channel by value (in US dollars). Also, to understand the consumption/ demand created by consumers of Lager during the period of 2022-2030

Market Landscape and Trends:

To identify and infer, the drivers, restraints, opportunities, and challenges for the global Lager market

Market Influencing Factors:

To find out the factors which are affecting the sales of Lager among consumers

Impact of COVID-19:

To identify and understand the various factors involved in the global Lager market affected by the pandemic

Company Profiling:

To provide a detailed insight on the major companies operating in the market. The profiling will include the financial health of the company past 2-3 years with segmental and regional revenue breakup, product offering, recent developments, SWOT analysis, and key strategies.

Intended Audience

• Lager Producers


• Raw Material Suppliers


• Retailers, Wholesalers, and Distributors