Market Definition
Beer is an alcoholic beverage produced from natural ingredients such as malted cereal grain, flavored with hops, and brewed by slow fermentation. A brewery is a structure where commercial beers are manufactured involving the processes of milling, malting, lautering, mashing, wort separation, fermenting, filtration, and filling.
Market Insights
The Global Brewery Equipment Market is projected to grow at a CAGR of around 8.1% during the forecast period, i.e., 2023-28. Over a number of eras, alcohol has played a significant role in social interaction and bonding. Beverages like beer, wine, ale, and lager are increasingly being served at social gatherings as alcohol plays a significant role in social interaction and bonding. Among these, beer is the most world-traded and consumed alcoholic beverage. However, during the Covid-19 Pandemic, beer consumption has diminished due to the cessation of breweries and alcohol retailers, which had an impeding effect on the brewing equipment market owing to lockdowns.
| Report Coverage | Details |
|---|---|
| Study Period | Historical Data: 2018-21 |
| Base Year: 2022 | |
| Forecast Period: 2023-28 | |
| CAGR (2023-2028) | 8.1% |
| Regions Covered | North America: US, Canada, Mexico |
| Europe: Germany, The UK, France, Russia, Spain, Italy, Rest of Europe | |
| Asia-Pacific: China, India, Japan, South Korea, Rest of Asia-Pacific | |
| South America: Brazil, Argentina, Rest of South America | |
| Middle East & Africa: UAE, Saudi Arabia, South Africa, Iraq, Rest of MEA | |
| Key Companies Profiled | ABE Equipment, Alfa Laval AB, Ampco Pumps Company, Criveller Group, Della Toffola SpA, Dyadic International Inc., GEA Group Aktiengesellschaft, HG Machinery, Hypro, Interpump Group SpA, Kaspar Schulz Brauereimaschinenfabrik & Apparatebauanstalt, Krones AG, Lehui, PAUL MUELLER COMPANY, Praj Industries, Others (BASF SE, Lesaffre, etc) |
| Unit Denominations | USD Million/Billion |
Consequentially, when breweries began to operate, the demand and supply chain surged quickly. In turn, setting up of new breweries accelerated the manufacturing of high-quality and economical brewing equipment. As a result, it led to the opening of several breweries in developing economies serving the burgeoning appetite for alcohol-based events presented by the urban middle class.
Further, with technological innovations and the advent of the internet of things (IoT), artificial intelligence, automated systems, robotics, and sensors, hygiene & standard qualities have improved in the brewery sector. Moreover, key players investing in businesses such as cellar equipment, outdoor expansion, and energy recovery methods to reinforce their market presence again prompt the adoption of brewery equipment in the coming years. For instance, in 2019, Kaspar Schulz GmbH announced a collaboration with G.E additive to expand brewing equipment manufacturing's intersection and provide sophisticated additive technologies to the brewing and beverage industries.
Market Dynamics
Key Driver: Ever-Expanding Consumer Preferences in Craft Beers
The expanding urbanization and developing financial conditions created a shift in consumer preferences in adopting the beer culture, particularly among the younger generation. With beer culture propagating worldwide, the manufacturing of Craft Beers, also known as Artisanal beer, has been exemplified in recent years. As they are often experimenting with different types of ingredients to create a distinct flavor, craft breweries are gaining traction over other forms. For instance, Miami Brewing Company creates exceptional brews with tropical fruits that South Florida and The Redlands offer. Thus, craft breweries garner attention from youth worldwide with varied brewing techniques and innovative flavors, encouraging industry expansion.
Possible Restraint: High cost of Maintenance and Power Consumption
The continual rise in the cost of maintenance, and power consumption obstructs the need for volume financiers and subsistence expenses which is expected to hamper the market expansion. Moreover, the brewing process involves refrigeration, lighting, and other processes that require electricity and natural gas to run the brewhouse. However, brewing consumes the most natural gas and refrigeration exhibits the most power consumption. Thus, brewers net profit cost is affected, specifically for the small brewers whose measures are lower than that of large brewers.
Growth Opportunity: The Continual Rise in Macrobreweries and Brewpubs
The increasing number of macro breweries and brewpubs has conclusively influenced the gr for corresponding tools and equipment. Further, the necessity for extensive maintenance, which is essential during/after installation, expects services such as annual maintenance contracts and after-sale services. Therefore, it strengthens the affiliation between beer and equipment manufacturers. In addition, the leading services that beer manufacturers require from brewery equipment producers are operator training, factory acceptance testing, preventive maintenance by exceptional technicians, and timely services which subscribe to their operational efficiencies. This benefits a clear understanding of their machinery and enhances performance leading to exclusive market enlargement.
Key Trend: Installations of Artificial Intelligence(AI) and Internet of Things (IoT)
Artificial intelligence gives the brewmaster the comfort of enhancing exceptional recipes with upgraded consumer ratings and feedback. Thus, the key industry players are advancing to automate their manufacturing principles to succeed in degrees of graining and filtration to preserve the product’s original flavor. In addition, artificial intelligence enables remote operators to set up a specific degree in their mechanisms. Thus, technological installments reduce the complexities involved in brewing without altering the art of brewing entirely. Hence, they are expected to contribute to the momentous growth of the brewing equipment market in the near years.
Market Segmentation
Based on Equipment Type,
The Macro Brewery Type is expected to sustain its superior position in the Brewery Equipment Market, among others during the forecast period. The macro types are further sub-segmented into milling equipment, brew house, cooling equipment, fermentation equipment, filtration, and filling equipment. Among these, milling equipment has the highest growth rate during the anticipated period.
Further, milling is the process of crushing the malt kernels into smaller particles physically for the preparation of lautering and mashing. It has to be processed conscientiously to find a perfect balance between grind that is too fine and one that is too rough. Thus, it yields the most expensive extract (wort) and operates with contentment throughout the brewing process. Backed by the wide adoption of these macro equipment, the industry is likely to enthrall in the coming years.
Based on Mode,
Automatic mode is anticipated to emerge as the leading market among its peers in the expected time frame. It is primarily because the increasing focus on mechanization and digitization by the beer manufacturers ensures the cumulative amplification of cost benefits.
Moreover, the installation of software and hardware to automate the brewing process instead of humans has attempted to terminate manual labor in order to enhance beer quality. Thus, the desired operations will be repeated once the automation streamlines the entire functions. Therefore, macro brewers adopt automation as a pivotal infrastructure component by investing in automation brewing technology, packaging volume, and incremental brewing. Consequently, the aforementioned factors are expected to thrust the brewery equipment market forward.
Regional Projection
Geographically, the Global Brewery Equipment Market expands across:
Europe holds the largest share of the global brewing equipment market and is expected to grow remarkably over the forecast period. The expanding preferences for different types of beer choices compared to their traditional form has opened up new avenues for the craft beer producers in this region. In addition, the Asia pacific market is anticipated to register a lenient CAGR in the coming years.
China dominated the Asia pacific brewery as consumers prefer low-calorie- or no-alcohol beer, projecting the craft beers adoption in that region. Furthermore, various rules and regulations by the government have encouraged the expansion of the breweries, driving revenue growth in the market. Hence, these regions are expected to yield more investments from key players, driving the demand for brewing equipment in the near future.
Recent Developments in the Market
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Frequently Asked Questions
A. The Brewery Equipment Market is projected to grow at a CAGR of around 8.1% during the forecast period, i.e., 2023-28.
A. Ever-expanding consumer preferences in craft beers are the prominent factor expected to drive the brewery equipment market during 2023-28
A. Alfa Laval AB, GEA Group Aktiengesellschaft, Krones AG, PAUL MUELLER COMPANY, Praj Industries, Dyadic International Inc., Della Toffola SpA, Criveller Group, Kaspar Schulz Brauereimaschinenfabrik & Apparatebauanstalt, Lehui, Hypro, HG Machinery, Interpump Group SpA, ABE Equipment, Ampco Pumps Company, Others (BASF SE, Lesaffre, etc)
A. Macro brewery is the leading equipment in the brewery equipment market during 2023-28.
A. Europe accounts for the highest revenue share of the brewing equipment market and is expected to grow significantly over the forecast period.
A. Installations of artificial intelligence(AI) and internet of things (IoT) is the key trend shaping the brewery equipment market during 2023-28.
A. The rise in macro breweries and brewpubs is the growth opportunity driving the brewery equipment market during 2028.
A. The constant rise in energy, maintenance, and power costs are the possible restraints affecting the flow of the brewery equipment market during 2023-28.
