Brewery Equipment Market Expected to Surge to USD 35.5 Billion by 2033

Introduction

The Global Brewery Equipment Market is projected to reach approximately USD 35.5 billion by 2033, up from USD 20.0 billion in 2023, reflecting a compound annual growth rate (CAGR) of 5.9% during the forecast period from 2024 to 2033.

Brewery equipment refers to the specialized machinery and tools used in the production of beer, ranging from brewing vessels, fermentation tanks, and mash tuns to filtration systems and bottling lines. The brewery equipment market encompasses the demand, supply, and trade of these essential components, serving small-scale craft breweries to large industrial brewing operations. Market growth is primarily driven by the rising popularity of craft beer and increasing consumer demand for unique, high-quality brews.

Additionally, technological advancements in automation and energy-efficient systems have led to the adoption of more sustainable and cost-effective equipment solutions. The global trend toward premium and organic products is further expanding opportunities for brewery equipment suppliers. Rising investments in the beer industry, particularly in emerging markets, present significant growth potential. Moreover, ongoing innovation in brewing techniques and the increasing demand for customized, scalable brewing solutions offer a favorable environment for market expansion and diversification.

Fundamental Insights

• The Brewery Equipment Market was valued at USD 20.0 billion in 2023 and is projected to reach USD 35.5 billion by 2033, reflecting a compound annual growth rate (CAGR) of 5.9%.
• Microbrewery equipment accounted for 75% of the market share in 2023, driven by the rising production of craft beer and the growing number of microbrewery establishments.
• Automatic brewery equipment held a 55% market share in 2023, as breweries increasingly prioritize efficiency and automation to reduce manual labor.
• Microbreweries represented 69% of the market in 2023, supported by the expansion of small-scale, independent breweries worldwide.
• Europe led the market with a 47% share, generating over USD 9.4 billion in 2023, bolstered by its strong brewing heritage and the rapid growth of the craft beer sector.

Report Scope

Emerging Trends

• Automation and Digitalization: The adoption of automation and smart technologies in brewery equipment is increasing. Breweries are integrating systems for process control, real-time monitoring, and data analytics, improving efficiency and consistency in production. Smart sensors and Internet of Things (IoT) devices enable operators to monitor equipment performance and environmental conditions remotely, contributing to reduced downtime and maintenance costs.
• Sustainability and Eco-Friendly Designs: Sustainability has become a core focus within the brewing industry, with an emphasis on energy-efficient and environmentally friendly equipment. Breweries are increasingly investing in equipment designed to reduce water and energy consumption, as well as carbon emissions. Energy-efficient brewing kettles, wastewater recycling systems, and heat recovery units are some examples of equipment innovations aimed at reducing environmental impact.
• Craft Beer Production and Customization: The rising popularity of craft beer has driven demand for flexible brewery equipment. Smaller-scale breweries are opting for equipment that allows them to produce a wide variety of beer styles in limited batches. Modular systems and compact brewing setups that enable quick adjustments to recipes are increasingly sought after, catering to the needs of craft brewers for innovation and creativity.
• Advanced Fermentation Technologies: Technological advancements in fermentation are becoming more common. New fermenters with enhanced control over temperature, pressure, and oxygen levels allow breweries to improve the quality and consistency of their products. This includes equipment designed to optimize fermentation cycles, leading to faster turnaround times and more consistent flavor profiles in the finished beer.
• Integration of AI and Machine Learning: Artificial intelligence (AI) and machine learning are being introduced to optimize brewing processes. These technologies enable predictive maintenance, reducing unexpected failures and extending the life of brewery equipment. AI systems can also analyze historical data to optimize brewing times, ingredient use, and energy consumption, further enhancing production efficiency.

Top Use Cases

• Craft Beer Production: Small to medium-sized breweries use specialized equipment for crafting unique beer varieties. These include smaller brewing systems that allow for flexibility in recipe development. Customizable mash tuns, kettles, and fermenters enable brewers to experiment with different grains, hops, and yeasts, thus catering to the growing craft beer market.
• Large-Scale Commercial Brewing: Large breweries rely on high-capacity brewing equipment for mass production of beer. Automated brewing systems, such as automated fermenters and bottling lines, ensure that large volumes of beer are produced efficiently and with high quality. Such systems help maintain consistency across batches while streamlining the brewing process.
• Microbreweries: Microbreweries use small-scale brewing equipment to produce limited batches of beer. Typically, microbreweries focus on high-quality, niche products, and the equipment used is often designed for flexibility. Smaller fermenters, boil kettles, and conditioning tanks allow microbreweries to experiment with unique ingredients while maintaining quality.
• Brewpubs and Taprooms: Brewpubs and taprooms often use equipment suited for smaller batches with a strong emphasis on freshness and quality. This equipment includes compact brewing systems, serving tanks, and integrated packaging systems that allow for on-site beer production and immediate customer consumption.
• Beer Packaging and Distribution: After the brewing process, packaging equipment plays a crucial role in ensuring that the beer reaches consumers in optimal condition. This includes bottling, canning, and kegging systems that automate the filling, sealing, and labeling processes. Additionally, packaging equipment that integrates directly with inventory management systems ensures smooth distribution and tracking.

Major Challenges

• High Initial Capital Investment: One of the primary challenges in the brewery equipment market is the significant upfront cost associated with purchasing and setting up high-quality equipment. For smaller breweries, these expenses can be prohibitive, limiting access to advanced brewing systems and technologies.
• Maintenance and Downtime: Brewery equipment is subject to wear and tear due to constant use in high-pressure environments. Unexpected breakdowns and maintenance issues can lead to significant downtime, which in turn impacts production schedules and profitability. Smaller breweries often lack the resources to address such issues quickly, resulting in longer repair times.
• Supply Chain Disruptions: Breweries depend on a complex network of suppliers for raw materials, parts, and specialized components. Disruptions in the supply chain, whether due to economic factors, logistics issues, or changes in raw material availability, can significantly impact production timelines and the cost of equipment.
• Energy Consumption: The energy-intensive nature of brewing presents an ongoing challenge. Brewing equipment, particularly large-scale systems, requires substantial energy for heating, cooling, and fermentation. Efforts to optimize energy use, such as the adoption of energy-efficient equipment, are often hindered by high costs or technical limitations.
• Regulatory Compliance: Brewery equipment must meet various health, safety, and environmental regulations, which vary across regions. Navigating the regulatory landscape can be complicated and costly, especially for breweries looking to expand into new markets. Non-compliance with regulations can result in penalties or even shutdowns, making it a significant challenge for producers.

Top Opportunities

• Technological Advancements: The continuous advancement of brewing technology presents significant growth opportunities. Innovations in automation, AI, and sensor technologies are poised to further streamline brewery operations, leading to cost reductions and improved production efficiency. These innovations also allow brewers to maintain a consistent product while offering customization and greater flexibility.
• Sustainability Initiatives: There is a growing demand for environmentally sustainable brewing practices, creating an opportunity for the development of equipment that reduces energy consumption and waste. Breweries are increasingly seeking equipment that supports water and energy conservation, making sustainability a key growth area for equipment manufacturers.
• Rising Demand for Craft Beers: The growing consumer interest in craft beers provides an opportunity for equipment manufacturers to target small and medium breweries. As craft beer production continues to expand, equipment that is adaptable, customizable, and efficient in small batch production is becoming increasingly important.
• Emerging Markets: Breweries in emerging markets are expanding, driven by an increasing appetite for alcoholic beverages and the modernization of the brewing industry. These regions present opportunities for the sale of brewery equipment, as local brewers look to adopt more efficient and scalable production methods to meet growing demand.
• Retrofit and Upgrades: Older brewery systems are often inefficient and outdated. As breweries aim to reduce operational costs and improve production quality, there is an increasing opportunity to upgrade or retrofit existing systems with more advanced equipment. This presents manufacturers with a market for providing upgrade solutions to existing brewery setups.

Key Player Analysis

• Alfa Laval: Alfa Laval is a leading player in the global brewery equipment market, recognized for its advanced heat transfer, separation, and fluid handling technologies. The company provides a wide range of equipment for breweries, including heat exchangers, filtration systems, and fermentation equipment. Alfa Laval’s solutions are highly regarded for improving energy efficiency and reducing environmental impact.
• GEA Group Aktiengesellschaft: GEA Group is another dominant player in the brewery equipment market, known for its broad range of solutions for the food and beverage industries. The company offers equipment for brewing, including brewhouse systems, fermentation tanks, and kegging systems. GEA’s focus on sustainability and process optimization has made it a key partner for large-scale breweries.
• Krones AG: Krones AG, headquartered in Germany, is a global leader in the design and manufacture of brewery equipment, particularly in packaging lines, bottling, and canning technology. Krones’ innovative solutions cater to both small and large breweries, with products ranging from brewing vessels to automated packaging systems.
• Paul Mueller Company: Paul Mueller Company is an established player in the brewery equipment sector, specializing in the design and production of stainless steel tanks, heat exchangers, and custom brewery solutions. The company focuses on providing high-quality equipment to craft and large-scale breweries, with its products designed to optimize brewing efficiency and quality.
• Criveller Group: Criveller Group is a leading manufacturer and supplier of brewing equipment, offering a wide array of products such as fermenters, bright beer tanks, and kegging systems. With a focus on innovation, Criveller has been supplying breweries across North America and internationally. The company has expanded its presence through strategic partnerships and acquisitions. Although specific revenue data for Criveller is not publicly disclosed, it remains a significant player in the global brewery equipment market.

Regional Analysis

Europe: Dominating Region in the Brewery Equipment Market with the Largest Market Share of 47.0% in 2023

The Europe region continues to dominate the global brewery equipment market, accounting for a significant share of 47.0% in 2023, with a market value of USD 9.4 billion. The growth of the market in Europe can be attributed to several factors, including a robust beer culture, increasing craft beer trends, and advancements in brewing technology. Countries like Germany, the UK, and France have emerged as key players in the European market, with Germany being particularly notable for its historical and continued prominence in beer production.

The region’s demand for innovative, high-efficiency brewing equipment is driven by the need for quality and consistency in production, along with a rising demand for sustainable and energy-efficient systems. The ongoing investments in modernizing brewery operations, alongside government support for the food and beverage industry, are also fostering the growth of the market in Europe. Furthermore, the region’s well-established supply chain and presence of numerous local and international equipment manufacturers contribute to its leadership position in the global market.

Recent Developments

• In February 7, 2024, Krones finalized its agreement to acquire 100% of Netstal Maschinen AG, located in Näfels, Switzerland. The acquisition was subject to regulatory approval, which has now been granted without conditions. As a result, Krones will officially integrate Netstal into its Filling and Packaging Technology division starting March 28, 2024. In 2023, Netstal posted revenues exceeding €200 million with a workforce of approximately 560 employees. However, its operating profitability currently lags behind that of the Krones Group.
• In May 5, 2024, KHS Group released its 2023 sustainability report, highlighting initiatives like sustainability management systems, resource conservation, and autonomous energy management. The report emphasizes the company’s commitment to reducing greenhouse gas emissions, including collaboration with Salzgitter AG through the Science-Based Targets initiative (SBTi). Additionally, KHS introduced its first-ever annual report and took steps to align with the EU’s upcoming Corporate Sustainability Reporting Directive (CSRD).

Conclusion

The global brewery equipment market is poised for continued growth, driven by evolving consumer preferences, technological innovations, and the increasing demand for high-quality and craft beers. As breweries of all sizes increasingly focus on automation, energy efficiency, and sustainability, the market for advanced brewing systems is expanding. This trend is supported by the rise of small and medium-sized breweries, particularly in emerging markets, where there is a growing appetite for modern, flexible brewing solutions.

Despite challenges such as high initial investments and regulatory hurdles, the opportunities for innovation in brewing technologies, coupled with the shift toward eco-friendly practices, are expected to drive the industry’s development. As brewers continue to prioritize customization, scalability, and sustainability in their operations, the brewery equipment sector is well-positioned for sustained growth in the coming years.

Discuss Your Needs With Our Analyst

Please share your requirements with more details so our analyst can check if they can solve your problem(s)

Request a Sample Download PDF