The global beer industry has grown significantly in the past two decades, with global beer production rising from 1.3 billion  hectolitres (34.3 billion U.S. gallons) in 1998 to 1.96 billion hectolitres (51.8 billion U.S. gallons)  in 2014.   That growth has levelled off slightly in the past few years as consumption levels have declined in some developed countries.  Fortunately, that decline has been offset by an increase in demand from emerging economies including China, the Philippines, Thailand and Brazil.

The craft beer industry has also been flourishing in the past few years, which has helped secure a net growth in the size of the global beer market last year.  In 2015, the profits from global beer sales were $522.6 billion, up from $516.9 in 2014.  But what is in store for 2016?  This article will take a look at some of the global beer trends that analysts predict for 2016.

More Mergers and Acquisitions
The rise of craft beer has seen many new breweries appear in the last few years.  However, at the same time the big players continue to merge and acquire smaller companies.

In 2015, Anheuser-Busch Inbev made a bid of $106 billion (£70 billion) to acquire its largest rival SABMiller.  If the deal goes ahead, it will mean the company produces more than a third of all beer drunk around the world.  It also means they will take more than 50% of all profit from global beer sales.  The acquisition has to be approved by regulatory agencies, but if it occurs it will be the biggest change to the global beer market in 2016. For some contrast, just 10-years ago, beer company ownership was highly fragmented and the biggest player was Anheuser-Busch with 8.5% market share.

At the same time, Anheuser-Busch Inbev and other large players keep buying up small craft breweries.  In 2015, AB-Inbev bought Arizona’s Four Peaks Brewing, the UK’s Camden Town Brewery and Colorado’s Breckinridge Brewery in the space of a single week.  2016 will see more of the same.

The Availability of Non-traditional Beers to Increase
The most exciting part about the rise of craft brewing is that the brewers are willing to take risks.  This sense of experimentation has resulted in beer drinkers having a vast array of beers to choose from, more than ever before.  This trend will continue in 2016, with industry analysts suggesting craft brewers will begin to develop more sour beers and fruit-flavoured sour beers in 2016.

There will also be an increase in the number of hard soda beers including alcoholic root beers and ginger beers.  Breweries are already experimenting with other blends, some notable brews released in 2015 being Boston Beer Co’s Hard Orange Cream Ale (brewed under their Coney Island label) and Small Town Brewery’s Not Your Mom’s Strawberry Rhubarb.  Expect more experimentation and some really exciting new beers.

Session IPAs and Premium to Remain Popular
One emerging trend in 2015 was the development of the session Indian Pale Ale (IPA).  This is a restrained version of an IPA which retains much of the flavour but has a lower alcohol content.  Many of the new beers released by craft breweries in 2015 were session IPAs with an alcohol content of below 4.5% ABV (Typically, IPAs are 6-7% ABV or more).  Drinkers can enjoy a few session IPAs without falling off of their chair!  We can expect to see many more session IPAs released in the coming year.

The Decline of Light Beer
Beer market analysts Research and Markets predict that the light beer market will decline in market share in 2016.  The strong beer market currently accounts for 65.6% of global beer sales, with a revenue of $318.4 billion in 2014.  Light beer’s 34.4% share is expected to decline because of the changing preferences of beer consumers.  Part of the decline is due to the impact of craft beers, which typically have higher alcohol content.

Growth in the Asia Pacific Expected to Fuel Profits
The same report indicates that the growth in popularity of beer in the Asia-Pacific will continue over the next few years.  There has already been strong growth in Asian countries including China, Vietnam, Thailand, Singapore and the Philippines.  The market in this region is expected to reach $202.4 billion by the year 2020.  The report also  suggests strong growth in premium beers in the global market with compound annual growth rate of 6.4% between 2015-2020.

Strong Growth in Africa While Developed Countries Stagnate
Figures published in The Drinks Business indicate that annual beer sales in Africa are expected to grow by 5% on average between 2015 and 2020.  That is even better than the 3% average growth rate in Asia. Meanwhile, the growth of beer markets in developed economies including the United States and Europe are expected to be 1% or less.  Urbanisation, improving incomes, and changing demographics are expected to fuel the increase of beer consumption in Africa.

Strong Sales for Craft Cider
Cider has been one of the success stories in recent years, with some companies seeing extraordinary growth in their sales of cider.  In 2016, there is expected to be an increase in the number of dry and semi-dry ciders.  There will also be a divergence in the type of fruits used to make cider, with pear becoming more common. 

This blog entry was written by guest blogger Julie Carling. Julie is  head of recruitment and co-founder at The Carling Partnership. The Carling Partnership, formed in 2001, is a UK.-based search and selection company offering a wide range of brewery jobs in the United Kingdom, Europe and North America.