The global premium lager market is expected to post a CAGR (compounded annual growth rate) of more than four percent between 2019-2023, according to the latest market research report by Technavio. According to the report, in addition to a growing consumer push for lagers, there are several factors fueling this growth:
- The U.S. is experiencing a growth in specialty beer stores. The Party Source, City Beer Store, and La Bodega are some of the significant specialist beer stores that offer a wide range of premium craft and conventional lagers. This trend is also picking up globally.
- A growing number of distribution deals between specialist retailers and vendors.
- Many major players are adopting the M&A strategy in acquiring smaller vendors to expand their presence in this sector, especially in key geographies.
Some examples of these growth strategies include:
- Japan-based SAPPORO HOLDINGS LTD. designated Anheuser-Busch InBev as the chief distributor of its premium lager in China.
- Heineken N.V. entered into a $3 billion partnership with China Resources Beer Company LTD., with an aim to tap into the growing market potential for premium lager brands in China.
- Constellation Brands, Inc. acquired a well-known premium lager enterprise called Four Corners Brewing Company.
Europe is currently the largest lager market, with a 42 percent share, followed by North America. Europe's leading position is attributed to a more frequent number of product launches. A lager is loosely defined as a beer with a cleaner, crisper taste. This comes from a colder brewing cycle and use of a specific yeast that best accommodates this type of brewing process.