In 2022, the global brewery equipment market was estimated to be valued at USD 19.2 billion, with a projected growth to USD 25.6 billion by 2027, marking a Compound Annual Growth Rate (CAGR) of 5.9%. This robust expansion is primarily attributed to the thriving craft brewery industry, which is gaining significant traction.
Opportunities: Meeting Beer Manufacturers' Demand for After-Sales Service
The brewery equipment sector demands extensive maintenance and service, both during installation and after the sale. Brewery equipment manufacturers can bolster their relationships with beer manufacturers by offering after-sales services, including annual maintenance contracts and expert installation. These services play a pivotal role in enhancing the operational efficiencies of breweries.
Key services that beer manufacturers seek from equipment manufacturers include operator training, preventive maintenance by skilled technicians, factory acceptance testing (FAT), and timely support. The ongoing shortage of skilled labor in the industry has led beer manufacturers to seek higher levels of operator training from brewery equipment manufacturers, further strengthening the demand for after-sales services.
Challenges: Rising Demand for Non-Alcoholic and Functional Beverages
As consumer preferences shift towards healthier beverage choices, the market for non-alcoholic beverages is expanding rapidly. Consumers are increasingly opting for low-calorie and nutritious alternatives over alcoholic beverages. Functional beverages, fortified with various nutrients, have gained popularity among health-conscious individuals with busy lifestyles. The pursuit of weight loss options has also led to reduced beer consumption among consumers.
Many major beverage brands are now focusing on developing innovative, nutritious drinks to cater to evolving consumer preferences. For instance, Arla in the UK introduced a carbonated dairy beverage in 2018, anticipating a 300% revenue increase in milk-based drinks by 2020. Such innovations, especially in the European region, pose a challenge to equipment manufacturers in the brewery industry as they adapt to changing market dynamics.
Key Players in the Brewery Equipment Market
Prominent players in the brewery equipment market include Alfa Laval (Sweden), GEA Group Aktiengesellschaft (Germany), Krones AG (Germany), Paul Mueller Company (US), Praj Industries (India), Meura (Belgium), Della Toffola SpA (Italy), Criveller Group (US), KASPAR SCHULZ Brauereimaschinenfabrik & Apparatebauanstalt GmbH (Germany), LEHUI (China), Hypro (India), HG Machinery (China), Interpump Group S.p.A (INOXPA) (Spain), and ABE Equipment (US).
