September 20, 2019 by Amanpreet
Craft Beer – More Than 25% of Demand to Be Generated from Pale Ales, Which Is Expected to Decrease Further by the End of 2029
Local Craft Breweries to Serve as Hidden Opportunities in the Craft Beer Market
Over the past few years the overall landscape of craft beer has changed considerably, with small local breweries reigning supreme in many ways. The fresh beer is more popular among consumers and this is the reason why less than 15% of the market share is acquired by large multinational companies in the craft beer market. People are becoming more educated about that particular style of craft beer, and consumption of craft beer which are made, sold and consumed on the same premises is most popular. Accordingly, brewers and consumers find local breweries as a place for family-friendly socializing. Moreover, the craft beer market is highly consolidated. According to Brewers Association, less than 25 percent of the craft brewery is owned or controlled by a beverage/alcohol industry member.
Packaging Offers Lucrative Benefits in the Craft Beer Market
Packaging of the products plays a very important role in the beverage industry. More than 7,000 breweries in the United States are constantly competing and innovating to grab consumer attention by their packaging. Brewers Association (BA) chief economist Bart Watson recently wrote that the upsurge in the use of canned packaging by craft brewers is now coming at the expense of bottles. The volume sales of bottled craft beer have slowed down in the year 2016 and is accelerated again in 2018. The increased use of 18 and 19 oz. cans among consumers also enhances the demand for canned craft beer. Recently Allagash Brewing Company (36th largest craft brewery) stated that it will start offering Allagash White in 4-packs of 16 oz. cans. Feel of the packaging has become most significant in the alcohol industry. According to Ink World, more than 73% of the consumers are more likely to buy if they are able to pick up the product during their commute. Raised text, catchy graphics, stickers, and tactile finish on the craft beer products can increase overall volume sales. Some of the brewers in the global craft beer market prefer to use full body shrink sleeves over canned packaging to achieve the best possible print quality on cans.
Adverse Effects and Regulations Numbing the Craft Beer Market but Online Sales is ‘Warming’ the Sales.
Excessive consumption of alcoholic drinks affects health adversely, especially among adolescents. It affects the brain and degrades the neuron activity over time. According to the WHO report 2014, 3.3 million deaths occur annually, owing to the excessive consumption of alcohol. Men account for 2/3rds of total deaths occurred due to consumption of alcohol. Moreover, the extra consumption of alcohol leads to liver damage, which can cause life-threatening situations for a human.
Further, alcohol can reduce communication between the brain and body of the human, which can cause numbness and tingling sensations in feet and hands. Excessive amounts of alcohol consumption can also lead to diabetes. Overall, there are many life-threatening problems which are hampering the growth of the craft beer market.
Many craft beer players use the money premise technique for representing duty purposes. Under the past guidelines, organizations were for the most part permitted to utilize this strategy if their normal yearly gross receipts did not surpass certain levels (generally a limit of $10 million). As the number of craft brewers grew, they ended up restricted in utilizing the money premise strategy for bookkeeping as they surpassed the gross receipts test. The US government is applying caps on many brewers for production and are applying extra duties and taxes if the number of barrel production surpassed the limit. In North America, the license may be refused. There are as of now enough brewers in the territory, and adding another would be negative to the area’s advantage, ethics, wellbeing or welfare. Steve Hindy, founder of Brooklyn Brewery states that some small brewers refuse to enter certain markets because of the local distributors’ reputation. That’s bad for these businesses and bad for the economy, but particularly bad for consumers, who would love to try the latest popular craft beers but can’t find them in their state.
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In spite of all these constraints, sales of craft beer have seen a rise from the online sales channels. The simplicity of accessibility along with the convenience of delivery at home has made individuals run to online stores of their preferred brands to consume the items. This additionally diminishes the examples of good policing and is viewed as a more secure medium to buy liquor by recent college grads. The craft beer makers are adding flavors and investing significantly to create flavored drinks in order to cater to changing tastes and preferences of the consumer. Also, the trend for low calorie and alcohol content craft beer is proliferating among millennials.
Market Leaders Strive to Stay on Top by Launching Flavored Alcoholic Beverages
Manufacturers are persistently propelling alcoholic drinks with various flavors to pull in buyers and increase volume sales over time. Interest among people to try new flavors is expected to increase demand for flavored alcoholic drinks and thereby to fuel the market growth of craft beer. The prominent players are engaged in offering craft beer in various fruit flavors. Atrial Rubicite by Jester King Brewery, Avancé by Allagash Brewing Co., Soft Parade by Short’s Brewing Co., Seed by Bissell Brothers Brewing Co., Wisconsin Belgian Red by New Glarus Brewing Co., and Grapefruit Sculpin by Ballast Point Brewing Co. are some of the brewers that helped shift the perception of fruit-flavored craft beer in America. In 2018, AB InBev, a European beer manufacturer, launched golden Italian craft lager Lisa in the UK. The product has flavors of honey balanced with a soft bitterness and a clean, dry finish.
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