Craft Beer: A market with great potential
Brazil is currently going through a good phase in the brewing market, managing to produce in 2019, according to the National Brewery Industry Union (SINDICERV), 13.7 billion liters, generating revenues of R$ 77 billion, with the country occupying the position 3rd largest beer producer in the world, just behind China and the USA.
Craft beer rise
Within this market, a specialized niche has been emerging for people who want to consume better quality beers, which is a reflection of the motto “drink less, but drink better”. This niche is Craft Beers, better known as craft beers, which have been gaining prominence nationally and internationally. According to a survey by Sebrae, the market for this beer category grew 64% in the last decade, with a continuous trend of expansion in the coming periods; for example, in the US, in 2017, this industry had a turnover of US$ 26 billion.
According to data from the Brazilian Association of Craft Beer and the Craft Beer Map, Brazil is the 3rd largest producer of craft beer in the world; its market grew 25% in 2019, with an expected 30% growth for 2020. Currently, this sector dominates 3% of the beer market share, with the propensity to expand to 6% and with room to grow even more, with potential of 10%. Currently, Brazilian production is 380 million liters per year, accounting for 1.6% of GDP and moving more than R$74 million annually.
Beer Market in Brazil
There is a large beer consumer market in Brazil; according to CERVBRASIL data, beer is the preferred drink of 64% of Brazilians. The classes that drink the most craft beers are A and B, which seek a differential in consumption and new experiences and flavors. It is important to point out that Brazil is recognized as a powerhouse in the artisanal brewing market, having a good place in craft competitions, for example at the World Beer Awards, in which it presented an excellent performance, receiving 236 awards in 2019, among which 7 were considered best of the world, all this without counting the other competitions in which the country also stood out.
There are several benefits to internationalizing in this sector, as there is a large consumer market abroad ready to consume such beers. There are some ways to expand in this field internationally, through exports accompanied by research on the best markets and how to enter them, creation of franchises, collaborations and sales of recipes and gypsy breweries, which are rented places for producers who do not have production in a fixed place. For 2020, the expectation is that the production of beer will surpass the mark of 14 million liters, that the sale will raise R$42 million and that exports reach 191 million kg/liter.
By Antonio Miranda on 02/04/2020