The global premium lager market size was valued at USD 161.1 billion in 2020 and is anticipated to expand at a CAGR of 4.5% over the forecast period. The industry is driven by increasing demand among customers for lager beer on account of its authentic taste, visual appearance, brand story, and smooth experience.
Premium lager products help in dealing with various health-related issues including blood pressure, diabetics, fungal infection, and prevention from minor fractures. Changing the lifestyle of people paves the way for them to moderately consume alcoholic beverages with health benefits, which is expected to remain a favorable factor for market growth. Urbanization, growing disposable income, and increasing consumer preferences for consumption of alcoholic beverages in a regular period in the developing countries, including India and China, are also expected to drive the market.
Conventional premium beer dominated the global premium lager market with a share of 54.6% in 2020. It is produced using a simple method of fragmentation at a low temperature of 45 to 65 degrees Fahrenheit. These beers are usually easy to prepare and provide a satisfying amount of return on investment to the manufacturers on account of easy availability and low price of raw materials.
The growth is attributed to the predominant consumption of conventional beer in the western European countries including Germany, the U.K., and France. Moreover, increasing awareness regarding the benefits associated with beer consumption, including better kidney functioning, prevention of type 2 diabetes, and faster recovery from pain and injury, is expected to increase the demand for a conventional premium lager in the future.
Craft premium lager beer is expected to expand at a CAGR of 4.8% from 2019 to 2025. This growth is attributed to shifting preference towards producing beer through craft brewing, which provides an authentic taste. The majority of the consumption of premium lager products is seen in countries including the U.S., Canada, Germany, and the U.K. The population in this region prefers consumption of beer daily as it acts as a mental relaxation from work stress and anxiety. The manufacturers are focusing on making new product types and flavours with associated health benefits.
Premium lager products are bought through on-trade channels including bars, restaurants, clubs, and hotels. The on-trade segment held the largest share of 65.0% in 2020 on account of an increasing number of resto-bars in major economies. Moreover, customers get a significant experience on account of the ambiance of the club or restaurant with an authentic taste of beer. New companies including B-Dubs, a global sports bar café of Buffalo Wild Wings, Inc., are coming up with new western alcoholic products for India. These factors are expected to expand the market access of premium product types through these channels soon.
The off-trade segment is expected to expand at a CAGR of 5.0% from 2019 to 2025. Off-trade channels are expected to remain one of the key selling channels among the buyers in developing countries including China and India as they offer the products in retail prices. Furthermore, these channels attract the consumers through offering services including gift packages and combo packs. The growing popularity of after-drinking culture among the working-class professionals as a result of hectic work style is expected to propel the consumers to utilize these channels for purchasing alcoholic drinks including premium lager from off-trade channels such as beer shops.
The Premium lager market is segmented on the basis of product, distribution channel and region. On the basis of product, the market is segmented into Conventional, Craft. On the basis of distribution channel On-trade, Off-trade.
Europe is anticipated to hold a share of more than 40.0% by the end of 2025. The predominant consumption of premium lager in Western European countries including Germany and the U.K. on account of increased awareness regarding its benefits, such as proper functioning of healthy heart, kidneys, and digestive system, is expected to remain a key market trend. Also, new companies are acquiring new segments of the larger market with their premium products. In January 2017, Heineken launched a new craft lager product in partnership with the Indonesian lager beer brand, Bintang, in the U.K.
Asia Pacific is expected to reach USD 63.7 billion by the end of 2025. The region is expected to foresee significant gains as a result of the expansion of middle-class income groups in key markets including China, India, Thailand, and the Philippines. Over the past few years, supportive government policies for establishing new commercial offices in the manufacturing and service sectors of the above-mentioned countries have paved the way for the consumers to increase their spending on restaurants and bars. This trend is expected to increase the number of pubs and resto-bars and thus, in turn, will expand the use of premium lager soon.
The key market players include Heineken N.V., Constellation Brands, Carlsberg Breweries A/S, B9 Beverages Pvt. Ltd., and Anheuser-Busch InBev SA/NV.
Premium lager products help in dealing with various health-related issues including blood pressure, diabetics, fungal infection, and prevention from minor fractures. Changing the lifestyle of people paves the way for them to moderately consume alcoholic beverages with health benefits, which is expected to remain a favorable factor for market growth. Urbanization, growing disposable income, and increasing consumer preferences for consumption of alcoholic beverages in a regular period in the developing countries, including India and China, are also expected to drive the market.
Conventional premium beer dominated the global premium lager market with a share of 54.6% in 2020. It is produced using a simple method of fragmentation at a low temperature of 45 to 65 degrees Fahrenheit. These beers are usually easy to prepare and provide a satisfying amount of return on investment to the manufacturers on account of easy availability and low price of raw materials.
The growth is attributed to the predominant consumption of conventional beer in the western European countries including Germany, the U.K., and France. Moreover, increasing awareness regarding the benefits associated with beer consumption, including better kidney functioning, prevention of type 2 diabetes, and faster recovery from pain and injury, is expected to increase the demand for a conventional premium lager in the future.
Craft premium lager beer is expected to expand at a CAGR of 4.8% from 2019 to 2025. This growth is attributed to shifting preference towards producing beer through craft brewing, which provides an authentic taste. The majority of the consumption of premium lager products is seen in countries including the U.S., Canada, Germany, and the U.K. The population in this region prefers consumption of beer daily as it acts as a mental relaxation from work stress and anxiety. The manufacturers are focusing on making new product types and flavours with associated health benefits.
Premium lager products are bought through on-trade channels including bars, restaurants, clubs, and hotels. The on-trade segment held the largest share of 65.0% in 2020 on account of an increasing number of resto-bars in major economies. Moreover, customers get a significant experience on account of the ambiance of the club or restaurant with an authentic taste of beer. New companies including B-Dubs, a global sports bar café of Buffalo Wild Wings, Inc., are coming up with new western alcoholic products for India. These factors are expected to expand the market access of premium product types through these channels soon.
The off-trade segment is expected to expand at a CAGR of 5.0% from 2019 to 2025. Off-trade channels are expected to remain one of the key selling channels among the buyers in developing countries including China and India as they offer the products in retail prices. Furthermore, these channels attract the consumers through offering services including gift packages and combo packs. The growing popularity of after-drinking culture among the working-class professionals as a result of hectic work style is expected to propel the consumers to utilize these channels for purchasing alcoholic drinks including premium lager from off-trade channels such as beer shops.
The Premium lager market is segmented on the basis of product, distribution channel and region. On the basis of product, the market is segmented into Conventional, Craft. On the basis of distribution channel On-trade, Off-trade.
Europe is anticipated to hold a share of more than 40.0% by the end of 2025. The predominant consumption of premium lager in Western European countries including Germany and the U.K. on account of increased awareness regarding its benefits, such as proper functioning of healthy heart, kidneys, and digestive system, is expected to remain a key market trend. Also, new companies are acquiring new segments of the larger market with their premium products. In January 2017, Heineken launched a new craft lager product in partnership with the Indonesian lager beer brand, Bintang, in the U.K.
Asia Pacific is expected to reach USD 63.7 billion by the end of 2025. The region is expected to foresee significant gains as a result of the expansion of middle-class income groups in key markets including China, India, Thailand, and the Philippines. Over the past few years, supportive government policies for establishing new commercial offices in the manufacturing and service sectors of the above-mentioned countries have paved the way for the consumers to increase their spending on restaurants and bars. This trend is expected to increase the number of pubs and resto-bars and thus, in turn, will expand the use of premium lager soon.
The key market players include Heineken N.V., Constellation Brands, Carlsberg Breweries A/S, B9 Beverages Pvt. Ltd., and Anheuser-Busch InBev SA/NV.
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