The Global Brewery Equipment Market is estimated to be valued at USD 22.1 Bn in 2024 and is expected to reach USD 33.3 Bn by 2031, growing at a compound annual growth rate (CAGR) of 5.1% from 2024 to 2031. The rising consumption of beer globally is driving the need for brewery equipment such as brewhouses, fermentation tanks, filtering equipment and filling machines amongst others. Growing microbrewery culture is also boosting demands for small-scale brewery equipment.

The market is witnessing positive trends such as rising automation in breweries and growing adoption of advanced equipment to produce innovative flavored beers. Manufacturers are investing in Industry 4.0 technologies like AI, IoT and machine learning to develop smart brewery equipment with monitoring and controlling capabilities. However, high initial investment and maintenance costs of commercial brewery equipment may hinder the market growth to some extent over the forecast period.

Market Driver - Increasing Global Demand for Premium and Craft Beer is Propelling the Brewery Equipment Market

The global appetite for craft and premium beers has been steadily rising in the last few years. Consumers today are more quality and variety-conscious when it comes to beer. They are moving away from the standard lagers and ales towards specialized craft beers featuring unique flavors, ingredients and brewing processes. This adventurous taste is translating into increasing sales and production volumes for premium and craft beers globally. As per industry estimates, the craft beer segment accounted for over 20% of the global beer market in 2021 and is expected to keep outpacing the growth of the overall beer industry.

The demand uptick has encouraged many large brewers to enter the premium brewing space or make acquisitions in the craft beer segment. It has also led to the rise of many new microbreweries and craft beer manufacturers particularly in Europe, North America and Asia Pacific. These premium and craft brewers require specialized equipment to deliver the variety, quality and customization today's discerning beer drinkers demand. Unlike the standardized equipment used by many mainstream brewers, craft breweries employ unique small-scale systems to experiment with diverse ingredients, brewing methods and flavors. Equipment such as craft brew house systems, fermenters, brite beer tanks and bottling lines allow them to scale up production of their niche craft beers.

Larger and well-established brewers are also investing in specialized craft systems to complement their existing portfolios and tap into the lucrative premium market. They need customized equipment at different brewing facilities to brew special seasonal, small-batch beers for local markets. Meanwhile, the thriving microbrewery culture has prompted the entry of many new craft brewers who rely solely on premium equipment right from their startup. With many nations also liberalizing regulations to promote local craft brewing, the demand for versatile brewery equipment enabling unique brewing capabilities continues to surge. This rising global appetite for premium and specialty craft beers is thus a major driver propelling the sales and growth of the brewery equipment industry.

Market Driver - The Rise of Artisanal Craft Breweries Fuels Demand for Brewery Equipment

In the last decade, there has been a groundswell of small independent artisanal breweries popping up globally. Discerning consumers are displaying a growing appreciation for authentic beers brewed in small batches with unconventional ingredients and distinct flavors. This consumer shift has provided the impetus for many entrepreneurs and experienced brewers to establish microbreweries producing premium specialty beers. These boutique craft breweries offer a highly localized, customized beer-making experience using standardized organic ingredients and eco-friendly brewing methods.

Notable aspects of the artisanal brewing model include reliance on local sourcing of barley, hops and fruits, unique brewing techniques and constant innovation of new seasonal beers. Most microbreweries also highlight the provenance of ingredients and brewing process as a mark of their distinct identity. Their brews therefore possess an inherent sense of place celebrated by local communities. Besides appealing to gourmet tastes, artisanal beers also represent nostalgia for old world brewing traditions and ethically produced food and beverages. This convergence of quality, authenticity and sustainability has won craft breweries legions of loyal fans globally.

The proliferation of artisanal microbreweries has boosted demand for specialized equipment needed to deliver their signature brews consistently while upholding high production standards. These include compact brew house systems, fermenters suited to small batch sizes, versatile vessels and innovative packaging lines. Many craft brewers also require mobile canning or bottling solutions for flexibility. Overall, the global rise of the artisanal brewing model presents a key tailwind driving increased investments in specialized brewery equipment tailored for niche craft beer production. This trend is expected to solidify further as consumer emphasis on provenance and unique gastronomic experiences grows worldwide.

Market Challenge - Strict Regulations Concerning the Production and Sale of Alcohol Pose Challenges for Companies in the Brewery Equipment Market

Strict regulations concerning the production and sale of alcohol pose challenges for companies in the brewery equipment market. Various government bodies extensively regulate the production and sale of alcoholic beverages to enforce compliance standards around health, safety, and legal age restrictions. Breweries must obtain permits and licenses from multiple regulatory agencies at both the national and local levels. Strict compliance is essential as non-compliance can result in penalties, fines, facility shutdowns and in the worst cases, incarceration of company executives and owners. The copious regulations also differ across jurisdictions, requiring customization of production, distribution and marketing activities according to local standards. This poses difficulties for equipment manufacturers in designing and producing standardized systems that can operate flexibly according to the diverse regulatory environments. Overall, navigating the complex regulatory landscape surrounding alcohol production requires significant coordination and administrative costs for breweries. Non-compliance remains a legal and reputational risk that brewery equipment companies must help their clients effectively mitigate.

Market Opportunity - New Growth from Compressor Innovations

Innovations in compressor technology, vital in the fermentation and bottling process, are creating new growth opportunities for brewery equipment manufacturers. Advances such as magnetic bearing compressors provide important efficiency gains for breweries. Magnetic bearing compressors consume up to 30% less energy than conventional compressors through their frictionless levitation of the central shaft. This helps reduce operating costs significantly for brewery customers. innovations have also improved the precision, speed and contaminant control delivered by compressors. Faster fermentation and bottling times allow higher volume productivity. Meanwhile tighter contaminant control upholds consistent product quality. To capitalize on demand for these solutions, equipment providers are investing in new facilities and production lines focused on magnetic bearing and other advanced compressor systems. Considering the energy and productivity benefits on offer, breweries are eager to upgrade their operations with the latest compressor technologies. This need is driving robust growth in orders and revenues for innovative brewery equipment manufacturers.

Focused Product Innovation - Leading players like Krones AG, Della Toffola Group, Criveller Group, and GEBR. HEINEMANN BREWERY EQUIPMENT has continuously invested in R&D to develop new and innovative brewery equipment. For example, in 2020, Krones launched its MicroStar brewhouse system aimed at craft breweries producing smaller batches. This compact unit combines brewhouse, fermentation and bright beer tank functions in a footprint of only 10 sqm. Such focused innovation helps players attract new craft brewers.

Early Adopter of Industry 4.0 - Major players have adopted Industry 4.0 technologies like IoT, AI and predictive analytics quite early. For instance, in 2018 Sievi launched Sievi CARE, a cloud-based remote monitoring and analysis system for brewery equipment. It collects real-time production data, predicts issues and recommends actions. This has helped Sievi gain an edge over smaller rivals and improve servicing. Data shows Sievi CARE reduced downtime by 20-25% for customers.

Global Expansion into Emerging Markets - To maintain growth momentum, leaders have expanded into high potential emerging markets in Asia Pacific and Latin America over the past 5 years. For example, Della Toffola set up a new manufacturing plant in India in 2017 to cater to the fast-growing Indian brewery market. This helped double its revenue from India within 3 years.

Strategic Acquisitions - Acquisitions have been a key strategy to broaden product portfolios and expand geographically. For example, Krones acquired Italian packaging solutions provider SACMI BEVERAGE in 2015 for USD 73 million. This strengthened Krones' position in high-growth African and Latin American markets where SACMI had a strong presence.

Insights, By Type, Expanding Consumer Interest in Unique, Artisanal Beers Fuels Growth of Microbrewery Equipment

By Type, the microbrewery equipment is projected to grow at 83.2% in 2024 owing to the rising popularity of craft beers among consumers has been a major driver of growth for the microbrewery equipment segment. As more drinkers take an interest in unique, locally-brewed beers with complex flavors, they are fueling demand for the specialized equipment needed to produce these beers on a small scale. Microbreweries allow passionate brewmasters to experiment with unique ingredients and brewing styles to develop distinct, artisanal beers that stand out from the mass-produced national brands.

Consumers have increasingly sought out these unique microbrews, enjoying exploring new beers from local breweries. The “experiential” aspect of visiting a microbrewery taproom to sample their one-of-a-kind beers on site has also boosted interest. As microbreweries have expanded to meet growing interest, their specialized equipment needs have followed suit. From mash tuns and brew kettles designed for small batches to bottling lines, labeling machines, and integrated management software tailored for smaller operations, demand has surged for specialized equipment configured for artisanal brewing runs.

Advances in automation and control systems have also enabled even very small brewing operations to produce beer of high quality with precise flavor profiles in an efficient manner. Computerized systems have streamlined record-keeping and quality control for microbreweries. Meanwhile, the craft beer movement’s emphasis on sustainability has increased interest in energy-efficient and environmentally-friendly equipment designed specifically for microbreweries. Demand looks set to continue growing as brewers experiment with new styles and consumers increasingly seek out unique, local brews.

Insights, By Mode of Operation Automation Enables Larger Breweries to Scale Up Efficiently

Within the mode of operation segment, the automatic brewing equipment demand has been highest due high-capacity, efficient production at larger craft and commercial breweries. The projected market share is expected to account for 55.1% in 2024. As the craft beer market has boomed, many successful breweries have expanded distribution and upscaled their operations to keep up with surging demand for their brands. However, scaling up brewing to produce larger volumes while maintaining strict quality control and consistency presents challenges.

Automatic systems have enabled breweries to ramp up their throughput in a controlled, regulated manner. Fully automated brew houses featuring computerized control of the mashing, lautering, boiling and fermentation processes allow for precise replication of recipes on a larger scale. Integrated quality control testing systems also help ensure consistency between batches as production increases. Robotic palletizing and packaging lines further optimize the automated workflow.

The labor savings and efficiency gains of automated brewing equipment have proved vital to craft breweries expanding distribution into new markets. It allows quality and flavors to scale up along with production size without compromising the brands. With automatic systems handling complex brewing steps, larger breweries can reallocate employees to focus on sales, marketing and further innovation. Demand for advanced automation solutions will therefore continue growing as craft brewers scale their successful brands to meet swelling market demand.

The global brewery equipment market is experiencing robust growth, driven by increasing demand for premium and craft beer and the rise of artisanal breweries. Europe remains the dominant market due to its high beer consumption and the presence of key players, but North America is projected to witness the fastest growth, fueled by the popularity of craft breweries and innovative beer flavors. The incorporation of AI in brewing is transforming the industry, with applications in automation, fermentation control, and predictive maintenance. This technology is enabling brewers to create unique beer flavors and improve production efficiency. However, the market faces challenges due to strict regulations on alcohol production and high competition among manufacturers. Despite these challenges, the growth of craft beer consumption and advances in brewing technology are expected to drive significant demand for brewery equipment in the coming years.

The major players operating in the Brewery Equipment Market include Alfa Laval, GEA Group Aktiengesellschaft, Krones AG, Paul Mueller Company, Brewbilt Manufacturing INC, Praj Industries, Meura, Della Toffola SpA, LEHUI, Criveller Group and KASPAR SCHULZ.

• In February 2024, Bwanaz launched the iGulu F1 Automated Smart Home Brewer, simplifying home beer brewing for consumers through AI-powered processes.
• In October 2023, Brooklyn Brewery introduced Fonio Rising, a craft beer made with fonio, a traditional West African grain, aiming to bring underutilized African ingredients to the global market.
• In April 2022, Alfa Laval provided brewing systems to Golden Brewery, the second-largest brewery in the world, enhancing its brewing capabilities.

• By Type
  • Microbrewery Equipment
  • Craft Brewery Equipment
• By Mode of Operation
  • Automatic
  • Semi-Automatic
  • Manual