The "Brewery equipment market" is expected to grow at a CAGR of 6.0% during the forecast period.
Brewery equipment comprises the various tools and machines that are used to make beer.
Rising demand for beers is expected to boost the brewery equipment market
Beers offer a low-calorie substitute for other beverages and contain anti-oxidants. It also provides essential fiber content to our body along with being sufficiently rich in vitamin B, vitamin B3 and vitamin B6. Since beers also have a high silicon content, consumption of silicon can lead to stronger bones and a greater bone density. Research has shown that beer consumption can reduce the risk of suffering from a heart disease, diabetes and even Alzheimer’s. Adequate consumption of beers leads to an increase in flexibility of the arteries that further improves the blood flow throughout our body.
Beers provide a benefit when they are used to wash hairs. It contains hops and malt, which support hair growth and make it healthier. Hence the demand for beer shampoos also propels the brewery equipment market.
The total number of breweries in USA has increased from 7722 in 2018 to about 9000 in 2020, an increase of 16.5%.
Product innovations in brewery equipment
Brewing is a process that involves the use of brewery equipment to manufacture beer on a small-scale or large-scale basis. Although majority of the breweries prefer the traditional methods of making beer that have been in play since centuries, the brewery equipment market nonetheless has seen various developments.
The industry is mostly driven by technological advancements aimed at automating the brewing process and emphasizing on mechanization and digitization. At every stage of the brewing process, automation is used. The crush of the grain, for example, can be adjusted remotely through computer in milling. The mill may switch between a coarser grind for base malts and a finer grind for specialized grains automatically thanks to programming.
The Meura Micro-2001 Hybrid mash filter was designed by Modist Brewing Company in the United States to replace the lauter tun, which used gravity to separate the liquid wort from the grain. Pneumatics provide pressure in the mash filter, which squeezes liquid wort from grains through a sequence of 45 chambers, each with a tiny membrane filter. These techniques increase efficiency, productivity and also the quality of the beer. Such technological developments are expected to boost the demand for brewery equipment globally.
Restraining factors on the brewery equipment market include the high operational costs of manufacturing brewery equipment and restrictive laws placed by governments on beer consumptions.
COVID-19 Impact analysis
COVID-19 pandemic has severely impacted economies all over the world. Evidently, it also has impacted the brewery equipment market indirectly. As stringent lockdown measures were implemented differently by countries globally, commonality can be observed in the sense that the bars, pubs, and restaurants were shut down everywhere as they violate the principle of social distancing, which has become a necessity in these times. In 2020, Europe observed a decline of 33% in the employment generated by the beer-making industry. Overall beer volume sales in the United States fell 3% in 2020, while craft brewer volume sales fell 9%, reducing small and independent brewers' share of the U.S. beer market by volume to 12.3 percent.
Breweries all over are being affected differently based on the size of the production operations they run. The closure of on-site establishments has negatively affected the breweries as it is their main source of revenue. They have had to develop new distribution channels to maintain their business, such as home deliveries, brewery apps so that customers do not need to come to the site and get a beer.
But there has been a drastic increase in other beer distribution channels such as through mail and e-commerce platforms. Drizly, an e-commerce platform for alcohol that operates in over 100 markets across the United States and Canada, saw a 300 percent increase in sales. Drizly enables customers to order a variety of alcoholic beverages directly from local retailers.
Based on brewery type
The global brewery equipment market is divided into two categories: macro breweries and craft breweries. Due to the high production of beer through the macro brewery, the macro brewery segment accounts for the highest market share in 2019. The macro brewery production is consistent. In 2020, there was an 8.3% increase observed in macro breweries in USA from 2019, and a decrease of 8% in craft breweries.
Because of the growing demand for craft beer, the craft brewery is expected to see positive market growth. The total sales of beers manufactured from craft breweries increased by 15% in 2020 as compared to 2019. Regional craft breweries in the United States produced approximately 15 million barrels of craft beer in 2020. Craft breweries involve small, time-consuming operations to make beer, but the quality of beer produced is better than that made by macro breweries. Recently, over 4,000 different brewers in the United States have decided to use the independent craft brewer seal.
As consumers are slowly developing a taste for the beers made by craft breweries, we expect this segment to grow in the forecast period.
Based on type of brewery equipment
Besides this, the market is divided into macro brewery equipment and craft brewery equipment.
Based on Region
The global brewery equipment market is divided into North America, South America, Europe, Asia-Pacific, the Middle East, and Africa.
Europe dominated the global brewery equipment market among all regions and is expected to grow at the highest CAGR during the forecasted period due to a shift in consumption of low or no alcohol beer from alcoholic drinks. Anheuser-Busch InBev, a Belgian beer brewing company, was the world's largest beer company in 2019, with approximately 54.6 billion US dollars in sales.
Additionally, beer consumption has been shown to protect the heart, prevent kidney stones, lower bad cholesterol, strengthen bones, reduce stress, improve memory, and increase cognitive function. This rise in demand is supported by use of technologically advanced and automated production equipment by the brewing companies.
Beer consumption around the world is highest in Germany, with 82.9 million hectoliters of beer consumed in 2019, followed by United Kingdom, which consumed 47.12 million hectoliters of beer. In North America it is the highest for USA, Mexico and Canada.
The North American region is expected to experience positive market growth as a result of increased beer consumption and growing health concerns. Organizations such as The Brewers Association have supported public barley and hops variety development, hop disease, and hop aroma research and service grants, as well as affiliated national and state-level companies.
Because of the presence of a diverse range of manufacturers operating in both international and domestic markets, the global brewery equipment market is fragmented. It is distinguished by the presence of a sizable consumer base all over the world, with companies conducting their operations through dedicated distribution networks. These companies use traditional brewing methods to make beer and are driven to automate and mechanize the brewing process.
Key players in the brewery equipment market include Alfa Laval, Shandong Eagle Machinery Co. Ltd, Paul Mueller, Della Toffola and GEA Group. They specialize in creating efficient and highly productive brewery equipment that is supplied to the beer making companies. Innovations are a constant, with the market leaders consistently investing in R&Ds to digitize and create quality brewing equipment.
Company Profile: Paul Mueller Company
Overview: Paul Mueller Company is headquartered in Springfield, Missouri, U.S.A., and was established in 1940, with additional manufacturing and sales operations located in Osceola, Iowa, Groenlo, Netherlands, and Vietnam. It was founded by Paul Mueller in 1943. The company initially entered into the brewery equipment industry when it started manufacturing wine tanks for installation in US, Canada and Mexico.
Product Portfolio: The Paul Mueller Company specializes in making tanks for beer fermentation, storage in the form of wine barrels, brew kettles, brewing infusion systems, souring tanks and much more. This is supported by innovations in the equipment. They are credited for the creation of stainless-steel wine barrels that are now being used all over the world.
Recent Developments: 1) The company introduced its newly developed beer serving tank that come with bag inliners which will reduce operating costs.
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