There is good news on the horizon, and as much as the brewing industry would like these numbers to increase at a faster rate, data from Fortune Business Insights suggests there will be a sizable increase in the market by the end of 2027. The global craft beer market size stood at US$89.25 billion in 2019 & is projected to reach US$190.66 billion by the end of 2027, at a CAGR of 10.4% in the forecast period.

According to the analysis, the “key market drivers” for the growth of the sector will include an increase in the number of microbreweries that will incite development and the growing popularity of taprooms and brewpubs among millennials owing to the socialising trends will enable speedy expansion of the market.

“The emerging small and independent breweries to enhance beer production to serve the ever-rising demand of consumers will further propel healthy growth for the market,” the report stated and highlighted how current research from the Brewers Association, small and independent brewers in the US produced 26.3 million barrels in 2019, with volume growth of 4% than the prior year – all of which was just the beginning of this burgeoning trend.

“The demand for other alcoholic craft beverages that have to go through vital distillation techniques to obtain high-quality liquor will subsequently impede the expansion of the market,” and also warned that flavourings and adjuncts within the beer category could hinder its progress rather than help it in its progression.

There was one key development within the industry that is set to have an impact on beer’s evolution and it was found in the introduction of low ABV medicinal mushrooms used in craft beers, including IPAs, that is brewed with Lion’s Mane mushrooms for functional benefits that will begin to modify the market.

The analysis revealed that, although lockdowns across several countries impacted the restaurant, bar and taproom social setting, the craft beer category would almost certainly see a revival.

“The colossal drop in beer production and sales has negatively impacted the global market. Nearly, 89% of the brewing companies, either had stopped or slowed down their production, as their year-on-year sales have declined. Nevertheless, the reopening of bars and pubs in the forthcoming months will help revive the sales and stabilise the market,” the report said.

The data stated that Pacific Asia will see rapid growth within this period, mainly due to “rapid urbanisation and increasing disposable incomes of consumers. The growing demand for unique tastes will aid the expansion of the market in the region,” said the findings.

North America is also expected to “hold a significant share during the forecast period and this will be due to the expansion of craft breweries in the US. The increased popularity of new flavours — such as pomegranate and grapefruit– will aid growth in the region. In addition, the increasing number of microbreweries with large volumetric production will have a tremendous impact on the market in North America, reminding the industry that it will continue to evolve and flourish.