Draught Beer Market Growth To Reach USD 69.9 Billion by 2033

Introduction

The global Draught Beer Market is experiencing steady growth and is projected to continue expanding over the next decade. In 2023, the market size is valued at approximately USD 51.5 Billion, and it is expected to reach around USD 69.9 Billion by 2033, growing at a compound annual growth rate (CAGR) of 3.1% from 2024 to 2033.

Several factors are driving this growth, including increasing consumer preference for premium and craft beers, a growing demand for on-premise consumption in bars, pubs, and restaurants, and the rising popularity of draught beer among younger generations. The demand for draught beer is being further fueled by advancements in brewing technology, which have enhanced the flavor and quality of beer served on tap.

Additionally, as the food service industry continues to expand globally, the availability of draught beer is also increasing, creating opportunities for market expansion. Furthermore, the market is seeing innovation in product offerings, such as low-alcohol and non-alcoholic draught beers, which are tapping into health-conscious consumer trends.

The increasing popularity of beer festivals and social gatherings is another factor contributing to market growth, as consumers often prefer the experience of draught beer for its fresh taste and social atmosphere. As the market continues to evolve, key opportunities exist in emerging regions, where the beer culture is rapidly growing, and in the development of new flavors and packaging solutions aimed at enhancing the draught beer experience.

With its expanding global presence, the draught beer market is well-positioned for further growth in the coming years. Asia-Pacific, where the consumption of draught beer is beginning to rise, especially in countries with a growing middle class and a shift toward Western-style dining experiences. Overall, the draught beer market is well-positioned for sustained growth, driven by both changing consumer preferences and ongoing innovation within the industry.

Key Takeaways

• Draught Beer Market size is expected to be worth around USD 69.9 Bn by 2033, from USD 51.5 Bn in 2023, growing at a CAGR of 3.1%.
• Keg draught beer held a dominant market position, capturing more than a 63.4% share.
• Premium draught beer held a dominant market position, capturing more than a 54.5% share.
• Macro Breweries held a dominant market position, capturing more than a 73% share of the draught beer market.
• Lager held a dominant market position, capturing more than a 45.5% share of the draught beer market.
• Millennials held a dominant market position in the draught beer market, capturing more than a 50.4% share.
• Regular Alcohol draught beers held a dominant market position, capturing more than a 71.2% share.
• Commercial Use held a dominant market position in the draught beer market, capturing more than a 76.3% share.
• On-premise distribution channels for draught beer held a dominant market position, capturing more than a 63.4% share.
• Europe dominated the market, holding a substantial 45.3% share with a valuation of USD 18.2 billion.

Draught Beer Statistics

Optimal Temperature for Draught Beer

• Experts suggest that flavourful varieties should be served warm to allow full appreciation of the flavor. Draught beer is commonly served at a temperature of 7 to 10°C (45 to 50 °F).
• Keep in mind that kegs are large canisters of liquid, so they take a while to fully cool down to the optimal temperature. You need to chill the beer down to about 2 to 8°C (37 to 46 °F).
• I add up all of the draught offerings’ ABV listed at a bar — it could have five taps, or 100.
• I then compare that number to the national average ABV of craft beers, which is 5.9 percent ABV.
• The bar sales platform BeerBoard has tracked a 4.5 percent decline in draft sales year-to-date across its network of on-premise clients, which includes major chain restaurants like Buffalo Wild Wings and T.G.I.

Serving Conditions of Draught Beer

• Roughly 80 percent of beer sold in the United States is sold in off-premise retail in either bottles or cans.
• It was an industry strength that has lately become a potential weakness: Watson says roughly 30 percent of draft beer sold nationally these days falls into the BA’s craft category.
• Within the non-alcoholic drinks market, beers at 0.5% ABV and under still lead the way in terms of value.
• While several companies are selling draught 0.0-0.5% abv beers to the on-trade, it’s by no means at a large scale.
• Findings from the British Beer and Pub Association revealed that 87% of pubs around the country served at least one no/low-alcohol beer option. Even still, the number of pubs offering these drinks on draught stood at 8%.
• This could mean that what you’re drinking might be anywhere from 5 percent up to 10 or 11 percent. Craft makers are also typically smaller breweries.

Emerging Trends

• Craft Beer Surge: The increasing popularity of craft beers has led to a higher demand for draught beer offerings. Consumers are seeking unique, locally brewed, and limited-edition beers on tap, which has encouraged bars and restaurants to offer a broader range of draught options.
• Low-Alcohol and Non-Alcoholic Options: As health-conscious consumers grow in number, low-alcohol, and non-alcoholic draught beers are becoming more mainstream. These options cater to those who enjoy the flavor of beer without the alcohol content, expanding the market’s appeal to a wider audience.
• Sustainability in Packaging: Sustainability is becoming a key focus in the beer industry, and draught beer is no exception. Many companies are adopting eco-friendly practices by using reusable kegs, reducing waste, and offering refillable beer containers to align with consumer preferences for greener alternatives.
• Innovative Beer Dispensers: Advances in beer dispensing technology are improving the quality and consistency of draught beer served. Newer systems ensure the beer stays fresh longer, maintains optimal carbonation, and reduces waste, enhancing the overall customer experience in bars and restaurants.
• Premiumization of Draught Beers: Consumers are increasingly willing to pay a premium for high-quality draught beer, especially in upscale venues. There’s a growing preference for high-end craft, imported, and aged beers, leading businesses to offer more premium draught selections to meet demand.

Use Cases

• Bars and Pubs: Draught beer is a staple in bars and pubs, where it is served fresh and cold. The ability to offer a variety of draught options helps businesses attract customers seeking unique and high-quality beer experiences, enhancing customer loyalty and boosting sales.
• Restaurants and Hotels: Many restaurants and hotels serve draught beer to complement their food offerings. The fresh and high-quality nature of draught beer pairs well with gourmet meals, attracting a diverse clientele. These establishments often rotate draught options to keep the menu exciting.
• Sporting Events and Festivals: At large-scale events like sports games and music festivals, draught beer is a popular choice due to its ease of service and fresh taste. It provides a fast and efficient way to serve large crowds, contributing significantly to event sales and enhancing the attendee experience.
• Home Draft Systems: With the rise of home entertainment, many consumers are installing home draft systems to enjoy pub-quality beer at home. These systems allow beer lovers to pour their preferred draught varieties directly from the tap, offering a convenient and premium experience.
• Corporate Events and Parties: Draught beer is commonly served at corporate events and private parties. It adds a premium touch to gatherings, offering guests a high-quality beer experience. Many event planners now include draught beer stations to cater to a wider range of preferences and enhance the event atmosphere.

Major Challenges

• Storage and Transportation Issues: Draught beer requires proper storage and transportation conditions to maintain its freshness and quality. Improper handling during distribution can lead to contamination or spoilage, which can negatively impact the flavor, leading to customer dissatisfaction and increased waste.
• Keg Waste and Disposal: The use of kegs, while common, creates waste and logistical challenges. Managing the return, cleaning, and reuse of kegs is a time-consuming and costly process. Additionally, improper disposal of broken or expired kegs can contribute to environmental problems.
• Temperature Control Difficulties: Maintaining the correct temperature for draught beer is critical for preserving its quality. Fluctuations in temperature during storage or service can alter the taste and carbonation of the beer, leading to inconsistent product quality and customer complaints.
• Equipment Maintenance Costs: The maintenance of draught beer dispensing equipment, such as taps, lines, and coolers, can be expensive. Regular cleaning and servicing are required to avoid contamination and ensure proper functionality. These ongoing costs can be a significant burden for bars, restaurants, and breweries.
• Market Saturation in Developed Regions: In mature markets like North America and Europe, the draught beer segment is facing saturation. With a large number of similar offerings available, it becomes increasingly difficult for businesses to stand out and attract new customers, limiting growth potential.

Market Growth Opportunities

• Expansion into Emerging Markets: As disposable incomes rise in regions like Asia-Pacific, there is a growing demand for premium beer experiences. Introducing draught beer in these emerging markets presents an opportunity for global brands to tap into a new, expanding consumer base.
• Craft Beer Innovation: The ongoing trend of craft beer is creating opportunities for draught beer providers to offer unique and experimental flavors. Craft breweries can expand their reach by offering their products on tap, capitalizing on the growing interest in locally sourced and artisanal brews.
• Non-Alcoholic and Low-Alcohol Options: With increasing demand for healthier lifestyles, there is a growing opportunity to offer non-alcoholic and low-alcohol draught beer. Expanding these options will appeal to consumers who enjoy the taste of beer without the negative effects of alcohol, broadening market reach.
• Sustainability and Eco-Friendly Initiatives: As consumers become more environmentally conscious, there is a growing opportunity to innovate with eco-friendly packaging and reusable kegs. Offering sustainable solutions, like recyclable containers and carbon-neutral practices, can attract eco-conscious customers and improve brand image.
• Smart Dispensing Technologies: Advances in smart dispensing systems can enhance the efficiency of serving draught beer while maintaining product quality. These technologies help reduce wastage, improve consistency, and provide a more personalized drinking experience, offering a competitive edge in the market.

Key Players Analysis

• Anadolu Efes is a leading brewery in Turkey, known for its extensive range of beers, including draught offerings that are popular both locally and internationally. The company’s strong presence in Central Asia, Eastern Europe, and the Middle East allows it to capture a diverse customer base, adapting to local tastes and preferences.
• Anheuser-Busch InBev is one of the largest beer companies globally, with a vast portfolio of brands including Budweiser, Stella Artois, and Beck’s. Their draught beer offerings are available in numerous countries, supported by an extensive distribution network that ensures freshness and quality in on-premise locations like bars and restaurants.
• Asahi Group Holdings, Ltd. is a major player in the global beer market, particularly in Japan. The company’s draught beer offerings, such as Asahi Super Dry, are highly popular, and known for their crisp and refreshing taste. Asahi has expanded its footprint internationally, particularly in Europe and Asia, contributing to its market growth.
• Boston Beer Company, best known for its Sam Adams brand, has made a significant impact in the craft beer sector. Their draught beers are popular in pubs and restaurants, and they continue to innovate with seasonal and limited-edition brews, appealing to craft beer enthusiasts in the U.S. and abroad.
• Carlsberg Group, based in Denmark, is one of the leading global brewers, offering a range of draught beers under brands like Carlsberg, Tuborg, and Baltika. The company focuses on quality and innovation, with sustainable practices such as eco-friendly packaging and efforts to reduce carbon emissions in their production processes.
• Castel Frères, a French beverage company, is known for its wine but also has a strong presence in the beer sector, particularly in Africa. Their draught beer offerings cater to a wide range of consumer tastes, and the company has a growing presence in emerging markets, focusing on high-quality, affordable beer options.
• China Resources Snow Breweries is the largest beer producer in China, offering its Snow Beer brand, which is one of the top-selling beers in the world by volume. The company has a strong focus on draught beer distribution, especially in local Chinese markets, and is expanding its reach across Asia.
• Constellation Brands, Inc. is a major player in the U.S. beverage sector, with a diverse portfolio that includes imported brands like Corona and Modelo. The company’s draught beers are widely available in the U.S. and are seeing increasing demand, particularly in the premium beer segment.
• Crown Imports, a subsidiary of Constellation Brands, focuses on importing Mexican beers, including Corona and Pacifico. These beers are hugely popular in the U.S., and their draught versions are commonly served in bars and restaurants, offering a refreshing, high-quality beer experience to consumers.
• Diageo, known for its premium spirits, also has a presence in the beer market through its Guinness brand. The company’s draught Guinness, especially the classic stout, is highly popular worldwide. Diageo continues to innovate with draught beer offerings, focusing on quality and brand recognition in the premium beer sector.
• Dogfish Head Craft Brewery is a well-regarded U.S.-based craft brewery known for its unique and experimental beers. Their draught beer offerings include a range of creative brews, which have made a mark in the craft beer scene, especially in the U.S., where they cater to adventurous beer drinkers.
• G. Yuengling & Son, America’s oldest brewery, is renowned for its rich history and high-quality beers. Its flagship Yuengling Lager is widely available on draught in the U.S. Their continued success stems from offering a consistent, traditional product, which resonates with consumers looking for familiar, reliable beer options.
• Gold Star is an Israeli beer brand, widely recognized for its draught beers served in local bars and restaurants. The brand has seen a surge in popularity within Israel and is expanding its reach to other markets in the Middle East, focusing on quality and a fresh beer experience.
• Groupé Castel is a French multinational that has expanded its presence across Africa and Europe. Known for its range of beers, including local and international draught beer options, Groupé Castel focuses on affordability and accessibility, offering a variety of beers suited to different consumer preferences in emerging markets.
• Grupo Petrópolis is a Brazilian brewery that produces well-known brands like Itaipava and Crystal. The company’s draught beer offerings are widely distributed across Brazil and other Latin American countries, where the brand is a popular choice in bars and restaurants due to its refreshing taste and quality.
• Heineken International B.V. is one of the world’s largest brewers, with a strong presence in the global draught beer market. The Heineken brand is widely available on tap, especially in bars and restaurants, and the company’s commitment to sustainability and quality has helped it maintain a dominant position in the market.
• Lagunitas Brewing Company, part of Heineken, is known for its craft beers and innovative brews. Their draught beers, including the popular Lagunitas IPA, are a hit in the U.S. and internationally. The company focuses on delivering unique, high-quality products that appeal to the craft beer consumer.
• Molson Coors Beverage Company is a leading brewer in North America, offering draught versions of its popular beers like Coors Light and Miller Lite. The company is expanding its product portfolio to cater to new consumer trends, including craft-style beers, and improving its sustainability efforts within the draught beer segment.
• New Belgium Brewing Company, a U.S.-based craft brewery, is known for its flagship Fat Tire Amber Ale and innovative brews. Their draught beers are popular in bars and restaurants, and the company continues to focus on quality, sustainability, and community engagement, which strengthens its market position in the craft beer sector.
• Pabst Brewing Company has a rich history in the U.S. beer market, and its iconic Pabst Blue Ribbon (PBR) is a popular choice on draught in bars across the U.S. The company focuses on maintaining the classic appeal of its brands while engaging new consumers through digital marketing and innovative beer offerings.
• Red Bull GmbH, primarily known for its energy drinks, has ventured into the beer sector with its Red Bull Energy Drink Beer. The company is exploring opportunities in draught beer distribution, combining its iconic branding with a new product offering targeted at younger, adventurous consumers seeking a unique experience.
• SABMiller, now part of Anheuser-Busch InBev, was one of the world’s largest brewers with a strong portfolio of international brands like Miller Genuine Draft. SABMiller’s draught beers were widely distributed across global markets, and its strategic focus on emerging economies helped the company gain a foothold in many regions.
• The Boston Beer Company, known for its Samuel Adams brand, is a key player in the U.S. craft beer market. Its draught beers, which include popular brews like Boston Lager and seasonal offerings, are widely available in bars and restaurants, catering to craft beer enthusiasts and mainstream consumers alike.

Conclusion

The Draught Beer Market is poised for steady growth driven by consumer preferences for fresh, high-quality beer experiences. The increasing popularity of craft beers, along with innovations in low-alcohol and non-alcoholic options, is expanding the market’s appeal. Key players in the industry are focusing on sustainability, innovative packaging, and better temperature control to meet evolving consumer demands. Despite challenges such as equipment maintenance and proper storage, the market offers significant opportunities, particularly in emerging regions and through the expansion of premium offerings. As the global beer culture continues to evolve, draught beer will remain a central part of the industry, providing both established brands and new players with avenues for growth.

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