The global brewery equipment market is projected to grow at a CAGR of 8.84% to reach a value of US$13.748 billion by 2025, from US$8.271 billion in 2019. The production of beer is increasing globally to meet the increasing demand owing to the popularity of beer as a recreational beverage, which in turn is facilitated by the increasing disposable income of the middle-income and low-income population. People are spending more premium beer. Thus, growing global beer consumption is encouraging more production of beer which, in turn, is driving the demand for brewery equipment. Additionally, the increasing number of microbreweries and breweries in order to increase production and meet the rising demand is further adding to the market growth of the brewery equipment worldwide. Growing preference for craft beer over traditional beers is also propelling the market growth of brewery equipment since the craft beer is considered as a much premium and an artisanal beverage and have a variety of styles that set it apart from traditional beer. In conjunction, it has stimulating flavor profiles and better alcohol content. Different types of beer used such as Indian Pale Ales (IPA’s), Lagers and Porters among others are fermented using better processes. Moreover, a variety of products and tastes are available, which are absent in the mass-produced beers., thereby leading to an increase in the setting up of craft breweries and the increase in craft beer production, thus positively impacting the market growth of brewery equipment.
The above graph represents the number of craft breweries in the U.S. According to the data provided by Brewers Association, the number of craft breweries in the country increased from 4,628 in 2015 to 7,346 in 2018, which is an increase of 2,718 or 58.72%.
In addition, the increasing awareness among beer producers and breweries to shift to the lucrative market for craft breweries business provides a great opportunity for market players for boosting the market growth of brewery equipment. The expansion of existing facilities and rising investments in the latest technologies such as automated brewing equipment for breweries will further propel the market growth of brewery equipment during the forecast period. Furthermore, the key players in the market are involved in collaborations, and investments in order to boost their market share and contribute to the market growth. For example, in June 2019, Elora Brewing Company announced that the company received around $63,000 in funding from the federal and provincial governments in order to facilitate the development of new products and purchase new equipment to improve their production facility. In April 2019, China International Marine Containers (CIMC), a provider of Chinese transportation equipment, acquired the Diversified Metal Engineering Market (DME), a brewery machine maker based in Canada. The main objective of this acquisition by CIMC was to expand its presence into the North American market and to become one of the leading companies dealing with brewery equipment to cater to the craft beer business. In August 2019, Ss Brewtech, a company dealing in brewery equipment (a subsidiary of Middleby Corporation), entered into a partnership with Brouwland for the purpose of distribution of their equipment in the European region in order to cater to professional and homebrewers in the EU and beyond.
The global brewery equipment market has been segmented based on type, brewery type, and geography. By type, the market has been segmented as brew kettles, copper kettles, stainless steel kettles, fermentation tanks, and others. By brewery type, the market has been segmented as microbreweries, macro breweries, and craft breweries.
Fermentation Tanks to hold a significant market share
Fermentation tanksare estimated to hold a significant market share, as the adoption of top quality filtration equipment and fermentation tanks is increasing. This is attributable to the fact that the effectiveness and the efficiency required in these processes are high in order to ensure that the end-product, which is beer, has good flavor and taste profile and is properly filtered and contains no residues.
Craft Breweries to grow at a notable pace over the forecast period
Craft Breweriesare expected to witness a decent CAGR during the forecast period owing to the fact that there are the increasing number of people who are preferring the consumption of craft beers due the improved and better flavor profile among other characteristics and benefits they offer, which is leading to increase in their production, thereby positively impacting the market growth of brewery equipment. Moreover, rising investments in expanding the craft brewery industry is further contributing to the market growth of brewery equipment. For example, in June 2019, the Canadian government announced an investment of more than US$1 million in 20 projects for Ontario Craft Breweries through the Canadian Agricultural Partnership.
Europe holds significant market share throughout the forecast period
Geographically, the global brewery equipment market has been segmented into North America, South America, Europe, Middle East and Africa, and Asia Pacific. The European brewery equipment market accounted for significant market share in 2019 and show considerable growth over the forecast period. The region experienced an increase in the production of beer during the period 2015-2017 in countries such as Italy, the Netherlands, Poland, and Spain. According to Beer Statistics 2018 (by The Brewers of Europe), the production of beer in Spain increased from 34, 960 hl in 2015 to 37,621 hl in 2017, in the Netherlands the production increased from 24,012 hl in 2015 to 24,271 in 2017, and in Italy the production increased from 14,286 hl to 15,603 hl in 2017. The North American regional market for brewery equipment also holds considerable market share which is attributable to the fact that in countries such as the US, there is increased production of craft beer supported by increasing investments in the craft beer market.
The major players covered as a part of this report are Alfa Laval,GEA Group Aktiengesellschaft,Paul Mueller Company,Praj Industries,Meura, Criveller Group, Kaspar Schulz, LEHUI, Hypro, and Czech Brewery System.