GLOBAL – The global beer market is expected to witness a significant shift towards higher-value sales over the next four years, according to a recent report by GlobalData.
The report predicts that value sales will grow at a compound annual growth rate (CAGR) of 3.9 percent from 2023 to 2028, while volume sales are projected to increase at a slower CAGR of 1.3 percent.
“The move towards premium products has been happening for well over a decade,” explains Kevin Baker, head of global beer and cider research at GlobalData. He highlights that this shift is driven by value perception, not just a desire for luxury.
Between 2019 and 2022, volume beer sales saw a slight decline of 0.1 percent in CAGR, while value sales grew by 3 percent.
“When economic pressures rise, people tend to gravitate towards premium beers,” says Baker, acknowledging the seemingly contradictory nature of this behavior.
He clarifies, “It’s actually about value for money. Consumers prioritize high-quality ingredients and brewing techniques when their spending power is limited. They want their money to go towards something they perceive as worthwhile.”
In 2022, “super-premium” and “premium” beers grew by 5.8 percent and 5.6 percent respectively, while mainstream beers, representing 60 percent of the market share, saw a modest increase of 2.3 percent. Meanwhile, discount beers, accounting for 13 percent of the market, experienced a decline of 1.8 percent.
Juan Gonzalez, director of the international business unit at Damm, another key player in the beer industry, emphasizes the role of market maturity in influencing consumer spending on alcoholic beverages. “As a market matures, people are willing to spend more on their drinks,” he explains.
Gonzalez warned that as markets mature, there is a risk of consumers moving away from beer to non-alcoholic beverages or more sophisticated options. To counter this trend, he emphasized the importance of focusing on the world beer lager segment, which includes brands like Damm, Peroni, and Moretti. In the UK, this segment constitutes 30% of beer sales.
Damm’s internal research further highlights the growing importance of subcategories within premium beer. They observed a shift in UK pubs, where premium lagers, world beer lagers, and craft beers are each gaining dedicated taps. This is a significant change from 2018, where a combined five taps would be allocated to all “premium” beers.
Liked this article? Subscribe to Food Business Africa News, our regular email newsletters with the latest news insights from Africa and the World’s food and agro industry. HERE
