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    Europe Craft Beer Market

    ID: MRFR/FnB/44922-HCR
    128 Pages
    Snehal Singh
    October 2025

    Europe Craft Beer Market Research Report By Type (Ale, Lager, Stouts), By Ingredients (Malt, Yeast, Enzymes, Hops) and By Distribution channel (Store, Non-store) - Forecast to 2035

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    Europe Craft Beer Market Infographic
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    Europe Craft Beer Market Summary

    As per MRFR analysis, the Europe craft beer market Size was estimated at 32.64 USD Billion in 2024. The Europe craft beer market is projected to grow from 36.75 USD Billion in 2025 to 120.3 USD Billion by 2035, exhibiting a compound annual growth rate (CAGR) of 12.59% during the forecast period 2025 - 2035.

    Key Market Trends & Highlights

    The Europe craft beer market is experiencing robust growth driven by local ingredients and sustainability initiatives.

    • Germany remains the largest market for craft beer, showcasing a strong consumer preference for quality and local flavors.
    • The UK is emerging as the fastest-growing region, with innovative brewing techniques capturing the attention of a diverse consumer base.
    • Sustainability initiatives are becoming increasingly important, as breweries adopt eco-friendly practices to appeal to health-conscious consumers.
    • The growth of microbreweries and the rise of craft beer tourism are key drivers, reflecting a shift towards unique and high-quality craft offerings.

    Market Size & Forecast

    2024 Market Size 32.64 (USD Billion)
    2035 Market Size 120.3 (USD Billion)

    Major Players

    Anheuser-Busch InBev (BE), Molson Coors Beverage Company (US), Heineken N.V. (NL), Diageo plc (GB), Boston Beer Company (US), Sierra Nevada Brewing Co. (US), Stone Brewing (US), Lagunitas Brewing Company (US), New Belgium Brewing Company (US)

    Europe Craft Beer Market Trends

    The craft beer market is currently experiencing a dynamic evolution, characterized by a growing consumer preference for unique flavors and artisanal production methods. This shift is largely driven by an increasing awareness of quality over quantity, as consumers seek out distinctive brews that reflect local ingredients and brewing traditions. The rise of microbreweries and independent craft producers has contributed to a vibrant landscape, fostering innovation and creativity within the sector. As a result, the craft beer market is not only expanding in terms of variety but also in its geographical reach, with new entrants emerging across various regions. Moreover, sustainability has become a pivotal focus within the craft beer market. Many producers are adopting eco-friendly practices, such as sourcing organic ingredients and utilizing renewable energy sources. This commitment to environmental responsibility resonates with consumers who are increasingly concerned about the ecological impact of their choices. Consequently, the craft beer market is likely to see a continued emphasis on sustainable practices, which may enhance brand loyalty and attract a broader audience. As the market evolves, it appears poised for further growth, driven by innovation, quality, and a commitment to sustainability.

    Rise of Local Ingredients

    There is a noticeable trend towards the use of locally sourced ingredients in the craft beer market. This movement not only supports local economies but also enhances the uniqueness of the brews. Consumers are increasingly drawn to products that reflect their regional heritage, leading to a greater appreciation for flavors that are distinctively local.

    Sustainability Initiatives

    Sustainability is becoming a cornerstone of the craft beer market. Many breweries are implementing eco-friendly practices, such as reducing water usage and minimizing waste. This focus on environmental stewardship is appealing to a growing segment of consumers who prioritize sustainable products in their purchasing decisions.

    Innovative Brewing Techniques

    The craft beer market is witnessing a surge in innovative brewing techniques. Breweries are experimenting with various fermentation methods and flavor combinations, resulting in a diverse array of products. This trend not only captivates consumers but also encourages competition among producers to create the next standout brew.

    Europe Craft Beer Market Drivers

    Growth of Microbreweries

    The craft beer market in Europe is significantly impacted by the proliferation of microbreweries. These small-scale operations are increasingly popular, as they cater to local tastes and preferences while fostering community engagement. In recent years, the number of microbreweries in Europe has surged, with estimates suggesting over 10,000 active microbreweries across the continent. This growth not only diversifies the product offerings available to consumers but also stimulates local economies. Microbreweries often emphasize unique brewing techniques and local ingredients, which resonate with the growing consumer demand for authenticity. Consequently, the craft beer market is likely to see continued expansion as these establishments thrive and attract a loyal customer base.

    Rise of Craft Beer Tourism

    The craft beer market in Europe is benefiting from the rise of craft beer tourism, where enthusiasts travel to explore local breweries and their offerings. This trend is particularly pronounced in regions known for their brewing heritage, such as Belgium and Germany. Craft beer festivals and brewery tours are becoming increasingly popular, attracting both domestic and international visitors. Data suggests that craft beer tourism contributes significantly to local economies, with estimates indicating that it generates millions of euros annually. This influx of tourism not only boosts sales for craft breweries but also enhances brand visibility and consumer engagement. As the craft beer market continues to capitalize on this trend, it may lead to further growth and innovation within the sector.

    Evolving Regulatory Environment

    The craft beer market in Europe is navigating an evolving regulatory landscape that impacts production and distribution. Recent changes in legislation have aimed to support small breweries by reducing tax burdens and simplifying licensing processes. For instance, several European countries have introduced tax incentives for craft brewers, which can lower operational costs and encourage growth. This regulatory support appears to be fostering a more favorable environment for craft beer production, potentially leading to an increase in the number of new entrants in the market. As regulations continue to adapt, the craft beer market may experience enhanced opportunities for innovation and expansion, allowing breweries to explore new business models and distribution channels.

    Health Consciousness Among Consumers

    The craft beer market in Europe is witnessing a shift towards health-conscious consumption patterns. As consumers become more aware of their dietary choices, there is a growing demand for lower-calorie and gluten-free craft beer options. This trend is reflected in the increasing number of breweries that are developing healthier alternatives, such as low-alcohol and organic beers. Recent surveys indicate that nearly 25% of consumers are actively seeking out healthier beer options, which is likely to influence product development strategies within the craft beer market. By addressing these health concerns, breweries can attract a broader audience and potentially increase their market share, thereby contributing to the overall growth of the industry.

    Consumer Preference for Craft Quality

    The craft beer market in Europe is experiencing a notable shift in consumer preferences towards high-quality, artisanal products. This trend is driven by an increasing awareness of the brewing process and the ingredients used. Consumers are willing to pay a premium for craft beers that offer unique flavors and local authenticity. Recent data indicates that approximately 30% of beer drinkers in Europe prefer craft options over mass-produced alternatives. This preference is likely to continue influencing the craft beer market, as consumers seek out distinctive taste experiences and support local breweries. As a result, craft breweries are focusing on quality control and innovative recipes to meet these evolving demands, thereby enhancing their market presence.

    Market Segment Insights

    By Type: Ale (Largest) vs. Lager (Fastest-Growing)

    In the craft beer segment, Ale holds the largest market share due to its diverse styles and flavors, appealing to a wide range of consumers. Lager, on the other hand, is rapidly gaining traction among craft beer enthusiasts, indicating a shifting preference towards this refreshing style. The growth dynamics demonstrate a strong inclination towards innovation in Lager production, making it a notable segment to watch. Recent trends indicate that Ale continues to dominate; however, the rise of craft Lager signifies emerging opportunities as brewers experiment with unique ingredients and brewing methods. Additionally, the expanding consumer base, seeking variety and quality, is driving the fast growth of Lager, propelling it to become a staple in the craft beer landscape.

    Ale (Dominant) vs. Lager (Emerging)

    Ale is known for its bold flavors and variety, encompassing styles such as IPA, pale ale, and Belgian ale, which resonate well with discerning consumers, making it a dominant force in the craft beer segment. Its rich character and adaptability to different brewing techniques elevate its status among craft options. Conversely, Lager is swiftly emerging, thanks to its crisp taste and mass appeal. Craft brewers are revisiting traditional recipes and incorporating innovative flavors to capture the interest of consumers. This segment showcases potential growth as new producers enter the market with creative lagers, appealing to both new and seasoned craft beer drinkers.

    By Alcohol Content: Standard Alcohol (Largest) vs. High Alcohol (Fastest-Growing)

    In the craft beer market, the distribution among alcohol content segments reveals that Standard Alcohol holds the largest share, appealing to a broad audience seeking balance in flavor and potency. This segment enjoys popularity due to its accessibility and alignment with consumer preferences for moderate consumption. Low Alcohol segments maintain a niche market appeal, focusing on health-conscious consumers, while High Alcohol is gaining traction among enthusiasts looking for unique and potent offerings. Growth trends indicate a dynamic shift toward High Alcohol craft beers, which are becoming increasingly favored by adventurous consumers seeking bold flavor experiences. The inclination towards Low Alcohol options is supported by rising health awareness, driving breweries to innovate within this segment. Standard Alcohol continues to benefit from established brand loyalty and varied offerings, while High Alcohol's appeal grows through limited releases and specialty brews that cater to discerning tastes.

    Standard Alcohol (Dominant) vs. High Alcohol (Emerging)

    Standard Alcohol craft beers are recognized for their balance of flavor and potency, serving as the cornerstone for many breweries in the market. This segment dominates due to its wide appeal, making it the go-to choice for casual consumers and social settings. On the other hand, High Alcohol craft beers are emerging as a unique niche, drawing in those who seek distinctive experiences and complex flavors. These products often incorporate experimental ingredients and brewing techniques, appealing to craft beer aficionados and collectors. The rising popularity of High Alcohol options signifies a shift towards exploration and premiumization, with consumers open to trying higher ABV (alcohol by volume) offerings, further diversifying the landscape in the craft beer segment.

    By Packaging: Bottles (Largest) vs. Cans (Fastest-Growing)

    In the craft beer market, bottles dominate the packaging segment, holding a significant share due to their traditional appeal and familiarity among consumers. Cans, however, are making remarkable strides, driven by their convenience, portability, and branding opportunities. Kegs, while crucial for draft offerings, occupy a smaller market share when compared to these two packaging methods. Growth trends indicate a rising preference for cans as consumers become increasingly inclined towards on-the-go options. The craft beer segment is also seeing innovation in can designs and eco-friendly packaging, which enhances their attractiveness. Bottles, despite being the market leader, face challenges from changing consumer preferences and environmental concerns, urging producers to explore sustainable practices in their offerings.

    Bottles: Dominant vs. Cans: Emerging

    Bottles are considered the dominant packaging choice in the craft beer market, primarily due to their established presence and consumer trust. They often facilitate a premium perception, appealing to craft beer enthusiasts who value traditional packaging. However, the rising trend of sustainability and convenience is creating space for cans, which are being recognized as an emerging player in the market. Cans are lighter, recyclable, and less prone to breakage, gaining traction among younger consumers and casual drinkers. This shift is also supported by the craft breweries' innovative branding strategies that leverage cans as versatile marketing tools, leading to an exciting competitive dynamic between these two packaging forms.

    By Distribution Channel: On-trade (Largest) vs. E-commerce (Fastest-Growing)

    The distribution of craft beer in the market shows a clear dominance of the On-trade segment, which takes the largest share of total sales. This segment includes bars, restaurants, and pubs, where consumers enjoy craft beer in social settings. Following this, the Off-trade segment covers retail stores and supermarkets, which also play a significant role but not as impactful as On-trade. E-commerce is emerging but still accounts for a smaller portion of the market. In recent years, growth trends indicate a substantial increase in the E-commerce channel, driven by changing consumer behaviors favoring online shopping and home delivery services. The COVID-19 pandemic accelerated this trend as consumers sought convenient ways to purchase their favorite craft beers without leaving their homes. Meanwhile, On-trade remains stable and continues to attract consumers through experiential offerings and unique local brews.

    On-trade (Dominant) vs. E-commerce (Emerging)

    The On-trade distribution channel is the dominant segment for craft beer sales, characterized by vibrant social experiences that enhance consumer engagement with various brands. Pubs and restaurants often curate craft selections to appeal to diverse palates, making this channel integral for brand recognition and consumer loyalty. In contrast, E-commerce is considered an emerging channel, gaining traction due to its convenience and accessibility. It offers consumers the ability to explore a broader range of craft beers and brands from the comfort of their homes. This segment caters particularly well to tech-savvy younger consumers who prioritize convenience and have a growing interest in unique craft selections not always available in physical retail locations.

    Get more detailed insights about Europe Craft Beer Market

    Regional Insights

    Germany : A Hub for Craft Beer Innovation

    Key markets include cities like Berlin, Munich, and Hamburg, where craft breweries thrive. The competitive landscape features major players like Anheuser-Busch InBev and local craft breweries such as Berliner Kindl. The business environment is characterized by a strong community of craft beer enthusiasts and a growing number of beer festivals. Local dynamics favor innovation, with breweries experimenting with unique flavors and sustainable practices, catering to a diverse consumer base.

    UK : A Thriving Market for Artisans

    Key markets include London, Manchester, and Bristol, where craft beer bars and festivals flourish. The competitive landscape features prominent players like BrewDog and Camden Town Brewery, alongside numerous local artisans. The business environment is dynamic, with a strong emphasis on innovation and sustainability. Local breweries often collaborate on limited-edition brews, creating a sense of community and excitement in the market.

    France : A New Wave of Brewing Culture

    Key markets include Paris, Lyon, and Strasbourg, where craft beer bars and festivals are gaining popularity. The competitive landscape features established players like Kronenbourg and a plethora of local craft breweries. The business environment is becoming more favorable, with local breweries focusing on unique flavors and collaborations. The sector is also seeing increased interest from the gastronomy industry, integrating craft beer into fine dining.

    Russia : Emerging Market with Potential

    Key markets include Moscow and St. Petersburg, where craft beer bars are becoming more common. The competitive landscape features both local and international players, with brands like Baltika and local craft breweries emerging. The business environment is evolving, with a growing number of craft beer festivals and events. Local breweries are focusing on innovation, experimenting with flavors and brewing techniques to attract a diverse consumer base.

    Italy : A Blend of Tradition and Innovation

    Key markets include cities like Milan, Rome, and Florence, where craft beer culture is rapidly expanding. The competitive landscape features established brands like Birra Moretti alongside numerous local craft breweries. The business environment is characterized by a strong emphasis on quality and innovation, with local breweries often collaborating with chefs to create unique pairings. The sector is also seeing increased interest from the tourism industry, integrating craft beer experiences into travel itineraries.

    Spain : A Growing Taste for Craft

    Key markets include Barcelona and Madrid, where craft beer bars and festivals are gaining traction. The competitive landscape features both local and international players, with brands like Estrella Damm and a growing number of craft breweries. The business environment is becoming more favorable, with local breweries focusing on unique flavors and sustainable practices. The sector is also seeing increased collaboration with the gastronomy industry, integrating craft beer into culinary experiences.

    Rest of Europe : Diverse Opportunities Across Regions

    Key markets include countries like Belgium, the Netherlands, and the Nordic regions, where craft beer culture is gaining momentum. The competitive landscape features a mix of local and international players, with a focus on innovation and quality. The business environment is diverse, with local breweries often collaborating on unique brews and participating in regional festivals. The sector is also seeing increased interest from the tourism industry, integrating craft beer experiences into travel itineraries.

    Key Players and Competitive Insights

    The craft beer market in Europe is characterized by a dynamic competitive landscape, driven by evolving consumer preferences and a growing inclination towards artisanal products. Major players such as Anheuser-Busch InBev (BE), Heineken N.V. (NL), and Molson Coors Beverage Company (US) are actively reshaping their strategies to capture market share. Anheuser-Busch InBev (BE) has been focusing on innovation and product diversification, launching new craft beer brands to appeal to younger demographics. Heineken N.V. (NL) emphasizes sustainability, integrating eco-friendly practices into its brewing processes, which resonates well with environmentally conscious consumers. Meanwhile, Molson Coors Beverage Company (US) is leveraging digital transformation to enhance customer engagement and streamline operations, indicating a shift towards a more tech-driven approach in the industry.

    The business tactics employed by these companies reflect a moderately fragmented market structure, where local breweries coexist alongside larger corporations. Localizing manufacturing and optimizing supply chains are prevalent strategies, allowing companies to respond swiftly to regional demands. This competitive structure fosters innovation, as smaller craft breweries often introduce unique flavors and brewing techniques, compelling larger players to adapt and innovate continuously.

    In October 2025, Anheuser-Busch InBev (BE) announced a partnership with a prominent European craft brewery to co-develop a new line of organic beers. This strategic move not only enhances their product portfolio but also aligns with the growing consumer demand for organic and sustainable options. The collaboration is expected to leverage the craft brewery's expertise in organic brewing, potentially setting a new standard in the market.

    In September 2025, Heineken N.V. (NL) launched a new initiative aimed at reducing water usage in its brewing process by 30% by 2030. This ambitious goal underscores the company's commitment to sustainability and positions it as a leader in environmentally responsible brewing. The initiative is likely to attract consumers who prioritize sustainability, thereby enhancing brand loyalty and market presence.

    In August 2025, Molson Coors Beverage Company (US) unveiled a digital platform designed to enhance customer interaction and streamline the ordering process for its craft beer offerings. This platform aims to provide a seamless experience for consumers, reflecting the increasing importance of digital engagement in the craft beer sector. By investing in technology, Molson Coors is likely to improve customer retention and drive sales growth.

    As of November 2025, the craft beer market is witnessing trends such as digitalization, sustainability, and the integration of AI technologies. Strategic alliances are becoming increasingly vital, as companies collaborate to enhance their product offerings and operational efficiencies. The competitive differentiation is expected to evolve, shifting from price-based competition to a focus on innovation, technology, and supply chain reliability. This transition may redefine how companies position themselves in the market, emphasizing quality and unique consumer experiences over mere cost advantages.

    Key Companies in the Europe Craft Beer Market market include

    Industry Developments

    The Europe Craft Beer Market has seen significant developments recently, particularly with major players like BrewDog and Heineken expanding their presence across various European countries. In August 2023, Heineken announced plans to open several new craft beer bars in key cities, aiming to capitalize on the growing interest in craft brews among European consumers. Additionally, in September 2023, BrewDog launched an innovative campaign focusing on sustainability, enhancing its appeal to environmentally conscious consumers. 

    The market is also experiencing a notable investment in technology for brewing processes and distribution, with companies such as Carlsberg and AB InBev increasing their Research and Development efforts to improve efficiency. The valuation of the craft beer market in Europe has surged, driven by increasing consumer preference for unique flavors and local products, reflecting a shift away from traditional lager. 

    Moreover, throughout 2022 and early 2023, there have been talks of potential mergers, particularly involving Sierra Nevada Brewing Co. and Molson Coors Beverage Company aiming to strengthen market positioning within Europe. The craft beer market continues to thrive, showcasing growth driven by innovation and evolving consumer trends.

    Future Outlook

    Europe Craft Beer Market Future Outlook

    The craft beer market is projected to grow at a 12.59% CAGR from 2024 to 2035, driven by increasing consumer demand for unique flavors and local products.

    New opportunities lie in:

    • Expansion of craft beer subscription services
    • Development of eco-friendly packaging solutions
    • Investment in experiential taproom experiences

    By 2035, the craft beer market is expected to be robust, reflecting strong consumer engagement and innovation.

    Market Segmentation

    Europe Craft Beer Market Type Outlook

    • Ale
    • Lager
    • Stout
    • Porter
    • Wheat Beer

    Europe Craft Beer Market Packaging Outlook

    • Bottles
    • Cans
    • Kegs

    Europe Craft Beer Market Alcohol Content Outlook

    • Low Alcohol
    • Standard Alcohol
    • High Alcohol

    Europe Craft Beer Market Distribution Channel Outlook

    • On-trade
    • Off-trade
    • E-commerce

    Report Scope

    MARKET SIZE 202432.64(USD Billion)
    MARKET SIZE 202536.75(USD Billion)
    MARKET SIZE 2035120.3(USD Billion)
    COMPOUND ANNUAL GROWTH RATE (CAGR)12.59% (2024 - 2035)
    REPORT COVERAGERevenue Forecast, Competitive Landscape, Growth Factors, and Trends
    BASE YEAR2024
    Market Forecast Period2025 - 2035
    Historical Data2019 - 2024
    Market Forecast UnitsUSD Billion
    Key Companies Profiled["Anheuser-Busch InBev (BE)", "Molson Coors Beverage Company (US)", "Heineken N.V. (NL)", "Diageo plc (GB)", "Boston Beer Company (US)", "Sierra Nevada Brewing Co. (US)", "Stone Brewing (US)", "Lagunitas Brewing Company (US)", "New Belgium Brewing Company (US)"]
    Segments CoveredType, Alcohol Content, Packaging, Distribution Channel
    Key Market OpportunitiesGrowing consumer preference for unique flavors and sustainable brewing practices in the craft beer market.
    Key Market DynamicsRising consumer preference for unique flavors drives innovation and competition in the craft beer market.
    Countries CoveredGermany, UK, France, Russia, Italy, Spain, Rest of Europe

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    FAQs

    What was the expected market size of the Europe Craft Beer Market in 2024?

    The Europe Craft Beer Market was valued at 27.2 billion USD in 2024.

    What is the projected market size of the Europe Craft Beer Market by 2035?

    By 2035, the Europe Craft Beer Market is projected to reach a valuation of 97.71 billion USD.

    What is the expected compound annual growth rate (CAGR) for the Europe Craft Beer Market from 2025 to 2035?

    The expected CAGR for the Europe Craft Beer Market from 2025 to 2035 is 12.329%.

    What type of craft beer holds the largest market share in 2024?

    In 2024, Lager hold the largest market share, valued at 12.3 billion USD.

    How much is the Ale segment of the Europe Craft Beer Market valued in 2024?

    The Ale segment of the Europe Craft Beer Market is valued at 10.5 billion USD in 2024.

    What was the market size of the Stouts segment in 2024?

    In 2024, the Stouts segment was valued at 4.4 billion USD.

    Who are the key players in the Europe Craft Beer Market?

    Key players in the Europe Craft Beer Market include major companies like Asahi Group Holdings, Diageo, and Carlsberg.

    What opportunities are driving growth in the Europe Craft Beer Market?

    Increasing consumer preference for craft beer and innovative flavors are key opportunities driving market growth.

    What challenges does the Europe Craft Beer Market face?

    The Europe Craft Beer Market faces challenges such as regulatory hurdles and intense competition from large beverage companies.

    How is the market growth expected to differ between segments?

    Between 2025 and 2035, the Lager segment is anticipated to grow significantly, alongside Ale and Stouts, contributing to overall market expansion.

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