Europe Beer Market By Product(Lager, Ale, Stout, Others), By Packaging(Bottles, Cans, Others), By Production(Macro Brewery, Micro Brewery, Craft Brewery), By Distribution Channel(On-trade, Off-trade) , By Region and Companies - Industry Segment Outlook, Market Assessment, Competition Scenario, Trends and Forecast 2024-2033

Report Overview

The Europe Beer Market size is expected to be worth around USD 174.2 billion by 2033, from USD 128.4 billion in 2023, growing at a CAGR of 3.1% during the forecast period from 2023 to 2033.

The European beer market is a dynamic landscape characterized by an intricate mix of production techniques, distribution strategies, and evolving consumer behaviors, deeply influenced by the continent’s diverse cultural, economic, and social contexts. This market incorporates a broad spectrum of brewing facilities, ranging from large-scale macro breweries to smaller micro and craft breweries that cater to niche tastes with a variety of beer styles such as lagers, ales, and stouts.

Distribution is effectively segmented into on-trade channels — bars, restaurants, and pubs where consumers enjoy beer onsite — and off-trade channels, which include supermarkets, liquor stores, and online platforms catering to home consumption.

In 2022, Europe’s beer production reached approximately 375 million hectoliters, confirming its position as a leader in the beer industry. This production is underpinned by stringent regulatory frameworks like Germany’s “Reinheitsgebot” or Beer Purity Law, which mandates the use of specific, traditional ingredients in beer brewing, ensuring high standards of quality and safety. The European Union plays a significant role in the international beer market, having exported beer worth around €13 billion in 2021 to major markets including the United States, China, and Russia.

Investments in the sector are robust, with both governmental and private entities actively funding advancements in sustainable production technologies. For example, a notable Dutch brewery invested €2.3 billion in 2023 to innovate its brewing and packaging processes. These investments are not just enhancing production efficiency but are also paving the way for the introduction of innovative products like craft and non-alcoholic beers, which are gaining popularity.

Strategic business operations such as mergers, acquisitions, and partnerships are crucial for market expansion and competitiveness. In a recent move, a major Belgian brewery acquired an Italian craft beer brand to strengthen its footprint in the Mediterranean region. Similarly, partnerships are frequently formed to secure high-quality ingredients from local sources, like the 2022 collaboration between a French brewery and local hop farmers.

Government initiatives also play a supportive role by offering incentives for the use of renewable energy in brewing processes and providing grants to aid breweries in expanding their export operations, for instance, facilitating the entry of UK-based breweries into Eastern European markets. These government-led efforts are designed to promote sustainable practices and market expansion, which are essential for the industry’s ongoing growth and adaptation to new consumer preferences and technological developments.

Key Takeaways

• The Europe beer market will grow from USD 128.4 billion in 2023 to USD 174.2 billion by 2033, a CAGR of 3.1%.
• Off-trade channels captured over 55.4% of the market in 2023, driven by consumer preferences for home consumption.
• Lager dominated the market in 2023 with a 76.2% share, favored for its crisp taste and accessibility.
• Bottles held a 44.6% market share in 2023, valued for their traditional appeal and perceived quality.
• Macro breweries held a 66.2% share in 2023, known for large-scale production and cost efficiency.

By Product

In 2023, Lager held a dominant market position, capturing more than a 76.2% share. This segment benefits from its widespread popularity and accessibility, appealing to a broad consumer base across Europe. Lagers are favored for their crisp and refreshing taste, making them a top choice in both casual and formal settings.

Following Lager, Ale commands a significant portion of the market. Known for its versatility and variety, including pale ales, brown ales, and Belgian styles, Ale attracts enthusiasts who appreciate its richer flavors and complex aromas. This segment has shown steady growth, driven by an increasing interest in craft brewing and artisanal beers.

Stout, characterized by its dark, rich, and robust profile, occupies a niche yet loyal segment of the market. Stouts are particularly popular during the colder months and are renowned for their deep flavors of coffee and chocolate. While smaller in market share, this segment enjoys a dedicated following and is often highlighted in specialty beer festivals and events.

By Packaging

In 2023, bottles held a dominant market position, capturing more than a 44.6% share. This packaging form remains popular due to its traditional appeal and the perception of the better taste quality it offers. Bottles are particularly favored in premium and craft beer segments, where presentation and brand image are crucial.

Cans follow closely, gaining traction for their convenience and sustainability. They are lighter than bottles, easier to transport, and more cost-effective in terms of recycling. The growing acceptance of cans is also driven by improvements in canning technology that preserve the beer’s flavor and freshness effectively.

By Production

In 2023, Macro Brewery held a dominant market position, capturing more than a 66.2% share. This segment benefits from large-scale production capabilities and widespread distribution networks. Macro breweries are known for their efficiency and ability to produce beer at lower costs, making them popular among a broad consumer base seeking familiar and affordable beers.

Micro Breweries have carved out a significant niche, appealing to consumers looking for local, bespoke beer experiences. These breweries focus on quality over quantity, often experimenting with unique flavors and brewing techniques. Although smaller in scale, microbreweries are gaining a loyal following due to their community-oriented approach and emphasis on craftsmanship.

Craft Breweries continue to grow in popularity, driven by a consumer shift towards artisanal and distinctively flavored beers. Craft breweries are recognized for their innovative brewing methods and use of non-traditional ingredients, which attract enthusiasts willing to explore new taste profiles. This segment’s growth is indicative of a broader trend toward premiumization in the beer market.

By Distribution Channel

In 2023, Off-trade held a dominant market position, capturing more than a 55.4% share. This segment includes supermarkets, liquor stores, and online retailers, where consumers purchase beer to consume at home or in other private settings. The convenience, variety, and competitive pricing offered by off-trade channels make them highly attractive to consumers looking for both bulk purchases and specialty beers.

On-trade distribution, encompassing bars, restaurants, and pubs, represents a vital part of the beer market, focusing on consumption in social settings. Although it holds a smaller market share compared to off-trade, the on-trade channel is essential for introducing new beer brands and varieties to consumers, providing an experiential aspect that off-trade cannot offer. This segment benefits significantly from the cultural preference in Europe for social drinking and dining out.

Key Market Segments

By Product

• Lager
• Ale
• Stout
• Others

By Packaging

• Bottles
• Cans
• Others

By Production

• Macro Brewery
• Micro Brewery
• Craft Brewery

By Distribution Channel

• On-trade
• Off-trade

Driving Factors

Expansion of Off-trade Channels Drives the European Beer Market

One of the primary driving factors for the European beer market in 2023 has been the significant expansion of off-trade distribution channels. This growth is largely attributed to shifting consumer preferences towards enjoying beer at home rather than in traditional on-trade settings like pubs and restaurants.

Off-trade channels, which include supermarkets, hypermarkets, and increasingly popular online retail platforms, offer a broader variety of beer options coupled with the convenience of home consumption. These channels have not only enhanced consumer access to a diverse range of beer products but also allowed for competitive pricing through bulk purchasing and regular promotions.

The rising popularity of off-trade sales is further supported by breweries’ strategic shifts towards these channels, enhancing their market presence and meeting consumer demand directly where it is strongest. Key industry players are actively investing in their e-commerce platforms to cater to the digital consumer base, with initiatives like dedicated beer delivery services gaining traction.

This transition is underscored by a general increase in e-commerce investments among leading breweries, aiming to capture the growing segment of consumers who prefer shopping online.

Moreover, the growth of the off-trade channel is complemented by the introduction of innovative home beer-tapping systems, which have gained popularity due to their convenience and the quality of draught beer they offer at home. This shift not only reflects changing consumer behaviors but also aligns with broader market trends toward personalization and premiumization of consumer goods, including beer.

Restraining Factors

Economic Pressures and Changing Consumption Habits as Major Restraints in the European Beer Market

One significant restraining factor for the European beer market is the economic pressure combined with a shift in consumer drinking habits. Recent years have seen a notable economic impact from events like the COVID-19 pandemic and geopolitical tensions such as the war in Ukraine, which have spurred inflationary pressures and constrained consumer spending across Europe. These economic challenges are tightening household budgets, leading consumers to reduce discretionary spending, including on alcoholic beverages like beer.

Furthermore, there is a noticeable trend towards health and wellness, which is influencing consumer preferences towards low and no-alcohol beer options. This shift is particularly evident among younger consumers who are increasingly prioritizing healthier lifestyle choices. The growing health consciousness is not only affecting traditional beer consumption volumes but also forcing brewers to diversify their product offerings to include more health-oriented products such as non-alcoholic or low-alcohol beers.

Additionally, the beer market is also facing constraints due to the saturation in mature markets where consumer preferences are rapidly evolving. The combination of economic constraints and the shift towards healthier and more diverse beverage options is leading to a more competitive environment, compelling traditional brewers to innovate while managing cost pressures to maintain their market share.

Growing Opportunities

Expansion of Off-trade Channels as a Major Growth Opportunity for the European Beer Market

The European beer market is poised for substantial growth opportunities through the expansion of off-trade distribution channels. The shift towards off-trade channels, including supermarkets, hypermarkets, and online retail platforms, presents a significant growth avenue for the industry. This trend is driven by the increasing consumer preference for purchasing and consuming beer at home, which has accelerated due to recent shifts in social habits and the convenience offered by these channels.

Supermarkets and hypermarkets are becoming increasingly dominant in the beer distribution landscape due to their ability to offer a wide variety of choices and competitive pricing, which are attractive to cost-conscious consumers. Moreover, the rise of e-commerce in the beer sector has further propelled market growth. Major breweries have been quick to adapt to this trend by enhancing their online platforms and investing in direct-to-consumer sales strategies. For example, Heineken has expanded its e-commerce operations through platforms like Beerwulf, aiming to meet the growing demand for home delivery services​.

The growth in off-trade sales is not just about expanding sales points but also about adapting to the new consumer behaviors that favor convenience, variety, and value for money. This strategic shift is supported by the broader availability of products and the ability to cater to a diverse consumer base from the comfort of their homes. As off-trade channels continue to grow, they are expected to significantly contribute to the overall expansion of the European beer market, offering breweries new avenues to reach consumers and increase sales volumes​.

Latest Trends

The Rise of Non-Alcoholic and Low-Alcohol Beer Varieties in Europe

One of the most significant recent trends in the European beer market is the growing popularity of non-alcoholic and low-alcohol beers. This shift is largely driven by changing consumer preferences towards healthier lifestyle choices and an increasing awareness of the impacts of alcohol consumption.

As a response, breweries across Europe are expanding their product lines to include a wider range of non-alcoholic and low-alcohol options, catering to a broader audience seeking healthier alternatives without sacrificing the social and cultural experience of beer drinking.

The expansion of non-alcoholic and low-alcohol beer varieties is not just a niche trend but is becoming a mainstream option in many European countries. For instance, non-alcoholic beer now accounts for over 5% of the total beer market in Europe.

This segment’s growth is supported by innovations in brewing technology that improve the taste and quality of these beers, making them more appealing to consumers who do not wish to consume alcohol but still enjoy the flavor and social experience of beer.

Moreover, the increase in production and consumption of these beer types is also a reflection of broader market recovery and adaptation after the disruptions caused by the COVID-19 pandemic and other economic challenges. Breweries are increasingly focusing on diversification and innovation to capture new market segments and respond to evolving consumer demands.

This trend towards low and no-alcohol beers is expected to continue growing, driven by health considerations and the younger generations’ preferences, indicating a significant shift in the European beer landscape​​​

Key Regions and Countries

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

Key Player Analysis

The European beer market is characterized by a mix of established multinational corporations and innovative craft breweries. Key players include Asahi Group Holdings Ltd., a major force with a diverse portfolio acquired through strategic acquisitions like SABMiller’s former assets in Europe. Bitburger Brewery, a renowned German brand, remains a staple in traditional beer markets with a strong regional presence. Carlsberg Group, known for its extensive international reach and iconic brands, continues to be a dominant player with robust distribution networks.

Anheuser Busch InBev, the world’s largest brewer, maintains a significant footprint in Europe through its diverse brand portfolio and extensive market penetration. Constellation Brands, though primarily known for its activities in North America, has also made inroads into the European market through strategic partnerships and acquisitions. Heineken NV, another giant, leverages its strong brand recognition and innovation in product offerings to maintain a competitive edge.

In the craft beer segment, Groupe Castel and Brewdog represent the dynamic nature of the industry. Brewdog, a pioneering craft brewery, has expanded rapidly with a strong emphasis on sustainability and community engagement. Mikkeller, Omnipollo, and Cloudwater Brew Co. are other notable craft breweries, each known for their unique brewing techniques and distinctive flavors, which cater to the growing demand for craft and specialty beers. These players collectively shape the competitive landscape of the European beer market, driving both innovation and tradition in the industry.

Key Players Market

• Asahi Group Holdings Ltd.
• Bitburger Brewery
• Carlsberg Group
• Anheuser Busch InBev
• Constellation Brands
• Heineken NV
• Groupe Castel
• Brewdog
• Mikkeller
• Omnipollo
• Cloudwater Brew Co.

Recent Developments

In 2023 Asahi Super Dry had grown by 35% year-over-year in Europe, largely due to expanded market penetration and promotional activities during the summer months.

In 2023, Bitburger Brewery reported a strong financial performance, with a 6.4% increase in turnover, reaching €776 million.

Report Scope