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The Microbrewery Equipment Market is characterized by dynamic and evolving trends shaped by various factors that influence both supply and demand. As the craft beer movement gains momentum globally, the demand for microbrewery equipment has experienced significant growth. One of the key drivers of market dynamics is the increasing popularity of craft and specialty beers among consumers who seek unique and diverse flavor profiles. Microbreweries, with their focus on small-batch production and experimentation, rely on specialized equipment to meet the demands of this discerning consumer base.
Challenges in the global microbrewery equipment market stem from the substantial requirements for high working capital and the elevated energy costs associated with manufacturing. These factors act as impediments to market growth. Manufacturers grapple with intensified market competition, a surging demand for alternative alcoholic beverages, and an increasing emphasis on environmentally sustainable brewery equipment, presenting additional hurdles. Despite these obstacles, a promising trend emerges with the escalating demand for craft beer in developing countries across Asia-Pacific and South America. This surge in popularity is instrumental in propelling the establishment of microbreweries in these regions, subsequently creating growth opportunities for market players.
The demanding need for significant working capital poses a constraint on market expansion, and the high energy costs linked to microbrewery equipment manufacture contribute to the complexity faced by manufacturers. Moreover, the competitive landscape marked by intense market rivalry and the growing preference for diverse alcoholic beverages pose continuous challenges for industry participants. Nonetheless, the upward trajectory of microbreweries in emerging economies paints a positive outlook, offering a silver lining and potential avenues for growth in the global microbrewery equipment market.
Geographical factors play a crucial role in shaping the market dynamics of microbrewery equipment. The rise of craft breweries is a global phenomenon, with different regions experiencing varying levels of growth. North America and Europe, in particular, have witnessed a surge in the number of microbreweries, leading to a higher demand for specialized equipment. However, emerging markets in Asia and Latin America are also contributing to the overall growth of the microbrewery equipment market as craft beer gains popularity in these regions.
Changing consumer preferences and the demand for unique and innovative beer offerings contribute significantly to the market dynamics. Microbreweries thrive on experimentation with different ingredients, brewing techniques, and beer styles. This drive for innovation influences the types of equipment required by microbreweries, leading to a continuous evolution of product offerings within the market. As consumers seek novel and distinct beer experiences, microbreweries invest in state-of-the-art equipment to cater to these preferences.
The increasing trend of beer tourism also plays a role in the dynamics of the microbrewery equipment market. Consumers are increasingly interested in visiting microbreweries to experience the brewing process, taste a variety of beers, and engage with the brewing community. This trend has led to a growing demand for visually appealing and efficient brewing equipment that enhances the overall brewery experience for visitors. Microbreweries that invest in attractive and functional equipment can capitalize on the beer tourism trend, contributing to their success in a competitive market.
Market dynamics are also influenced by challenges faced by microbreweries. High upfront costs associated with purchasing and installing specialized equipment can be a barrier for new entrants or small businesses. Additionally, the need for skilled personnel to operate and maintain the equipment poses a challenge for some microbreweries. Overcoming these challenges requires strategic planning, access to financing, and investments in training and development.
Microbrewery Equipment Market Highlights:
Global Microbrewery Equipment Market Overview
Microbrewery Equipment Market growth rate is projected to be 5.9% until 2032. The global market value should be USD 17.45 billion in 2024. It should be USD 26.21 billion in 2024-2032.
Microbrewery equipment is used to ferment the malt by-products that will become beer. Fermentation is vital to produce good lagers. The microbrewery equipment plays a vital role in fermenting the beer.
The grains (barley) that are fermented to produce different types of beer are rich in key vitamins, nutrients, and antioxidants. Thus, beers are a significant source of vital nutrition. The fact that they are rich in antioxidants means that they can offer their customers several health benefits including fewer illnesses and the chance to live a longer and healthier life. These are some of the reasons why various types of lagers have become more popular in recent years.
Beers are also rich in fibre and polyphenols. Thus, they may keep the people who drink them more regular.
Microbrewery equipment is used in small, medium, and large-scale enterprises alike. It includes monitoring tools and systems whose sole purpose is to check the quantity and quality of beers being brewed. The trend in recent years has been to automate as many of these systems and tools as possible.
COVID-19 Analysis
COVID-19 is a dangerous virus and its presence is changing the destiny of the world. The world was already headed towards the digital age but COVID-19 is accelerating this trend. This virus made concepts like social distancing, contactless delivery, and remote working the new norm.
Governments and public health officials realized that COVID-19 had to be taken seriously. That’s why they imposed quarantines and lockdowns. These were temporary since they didn’t really work. However, the long-term effects that they had on many businesses around the world were long-term and devastating. Most businesses found that they had to either shut operations down, at least temporarily or dramatically scale back production.
The companies in the global microbrewery industry were no exception. Many manufacturers found that they had excess inventory as sales suddenly dropped. People were staying in much more often and thus were turning to online stores to buy beer. It’s also wreaked havoc on beer’s global supply chain and distribution networks.
Market Dynamics
Drivers
What’s boosting growth in the global microbrewery equipment market is the fact that more and more people are using this equipment to produce beer at home. Many people find that brewing their own beer is far less costly than buying beer that has been brewed in a brewery.
Many people are gravitating towards drinking more beer because it’s relatively low in calories and a rich source of antioxidants. This factor is also driving growth in the global microbrewery equipment market.
Opportunities
Many companies in the global microbrewery equipment market are enticed by the higher CAGR of the market. They are also enticed by its higher market value. These companies are seizing upon the greater demand for different types of beers by ensuring that their facilities are equipped with the latest and most technologically advanced equipment available.
They are also investing heavily in research and development to develop the type of microbrewery equipment that will allow them to brew beer in an environmentally friendly manner.
Restraints
Microbrewery equipment can be costly, especially the newer generation that is environmentally friendly and technologically advanced. The high cost of maintaining and repairing microbrewer equipment is also another restraining factor. These machines also require a great deal of energy to operate efficiently. High energy costs are another restraining factor.
Challenges
Perhaps the greatest challenge that companies in the global microbrewery equipment market face lie in trying to produce a newer generation of equipment that is technologically advanced and environmentally friendly enough to brew more beer but is priced at price points that the global masses can afford.
Cumulative Growth Analysis
The global market growth rate is projected to be 9.30% until 2027. The global microbrewery equipment market value should be USD 500 billion in 2024. It should be USD 4.8 billion in 2027.
Technology Analysis
ICC Northwest Inc is a major American player in the global microbrewery market. It is an industry leader. It invested heavily in research and development. Thus, ICC Northwest Inc was able to market those technologically advanced and environmentally friendly products at higher price points. The company was also able to create a sustainable competitive advantage.
Segment overview
By Type
This segment generated the largest revenue stream of all of the segments in the global microbrewery market in 2018. This trend is expected to continue for the time period that this report covers. Barley and other grains must ferment for beer to be produced. Different breweries have different types of equipment because they produce different types of beer.
This equipment deteriorates quickly because it’s constantly exposed to malt, grains, alcohol, and chemicals. All of these are used to produce quality lagers. The equipment needs constant maintenance. It also needs to be repaired and replaced regularly. These factors are contributing to the industry’s rapid growth rate.
The type segment can be grouped into the following sub-segments:
- Mashing Equipment
- Cooling Equipment
- Others
By Operation Mode
This segment can be grouped into the following sub-segments:
- Semi-automatic and automatic
- Manual
The semi-automatic and automatic sub-segment had the largest microbrewery equipment market share in 2018. It’s also expected to enjoy the highest microbrewery equipment market growth rate for the time period that this report covers.
By Region
The global microbrewery equipment market can be grouped into the following regions:
- North America
- The European Union
- Asia-Pacific
- The Rest of the World
Regional Analysis
The European Union currently has the largest microbrewery equipment market share at 48.2%. This was according to 2019 data. The European Union is expected to have the largest market share for the time period that this report covers. One reason for this is the fact that many nations in the European Union have large numbers of beer consumers. One case in point is Germany. Another is Austria.
Another factor that is contributing to the European Union’s dominance in terms of microbrewery equipment market share is the fact that many larger companies in the region are merging with and/or acquiring other similar companies.
The Asia-Pacific region is witnessing respectable growth in the regional microbrewery equipment market. China, especially, has the largest microbrewery equipment market share of any nation in the Asia-Pacific region. The reason why is that the Chinese prefer to drink different types of beers. Microbrewery equipment is capable of producing these different varieties of beers.
Asians are gravitating towards drinking different varieties of beer because they perceive that it improves their overall health.
The North American region held a sizeable portion of the global microbrewery equipment market share in 2019. The region is expected to enjoy a high growth rate for the time period that this report covers.
Competitive Landscape
The global market is highly competitive. It’s also extremely fragmented. The reasons for this are that the market has a high CAGR. It’s also highly lucrative. Thus, many companies are enticed to enter the market. It’s especially the case with larger companies with huge treasuries. There are also a few barriers to entry into this industry and minimal capital requirements. Thus, the industry is saturated with companies of all sizes.
Most companies find that they can remain competitive if they invest heavily in research and development. They are able to develop a new generation of equipment that is technologically advanced, environmentally friendly, and has newer and more innovative applications. These companies are thus able to create a sustainable competitive advantage.
Companies also find that merging with and acquiring other successful companies helps them stay financially profitable and commercially and economically viable. These companies are able to access resources through mergers and acquisitions that they would otherwise not be able to. Thus, they are able to develop a sustainable competitive advantage.
Partnerships with successful companies in the industry allow companies to accomplish the same goals as mergers and acquisitions do.
ICC Northwest Inc is a major American player in the global microbrewery market. It leads because it invested heavily in research and development. Thus, it was able to develop and market that equipment that would give it a sustainable competitive advantage.
List of Companies
- ICC Northwest, Inc. (US)
- Krones AG (Germany)
- LEHUI (China)
- BrauKon GmbH (Germany)
- Paul Mueller Company (US)
- MEURA (Belgium)
- Della Toffola SpA (Italy)
- Shanghai HengCheng Beverage Equipment Co., Ltd (China)
- ALFA LAVAL (Sweden)
- GEA Group Aktiengesellschaft (Germany)
Recent Developments
- Heineken recently marketed a new beer brand in Mozambique. It’s made with domestically grown maize and is designed to cater to the unique tastes of the people in Mozambique.
- Australian Beer Company recently launched an innovative new beer brand.
- Carlsberg recently launched a new brand of beer that’s targeted towards the growing millennial population.
Report Overview
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The global microbrewery equipment market growth rate is projected to be 9.30% until 2027. The global market value should be USD 500 billion in 2024. It should be USD 4.8 billion in 2027.
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The North American market may have the greatest microbrewery equipment market share but the Asia-Pacific region has the highest market growth rate.
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