Organic Beer Market Size, Share, and Industry Analysis by Type (Lager, Ale, Stout, and Others), By Packaging (Metal Cans and Glass Bottles), By Distribution Channel (On-Trade and Off-Trade), and Regional Forecast, 2024-2032

Organic beer is made with ingredients such as hops and barley that are grown without the use of toxic fertilizers or synthetic pesticides. The organic beer market is a rapidly growing segment of the global beer industry. Consumers are increasingly seeking healthy and natural alternatives in their beverages, propelling the demand for organic products. According to the Organic Trade Association survey, in 2022, organic food sales in the U.S. totaled USD 67.6 billion, with a 4% growth rate compared to the previous year. Organic beer is perceived as a healthier option due to the use of organic ingredients free from synthetic pesticides and fertilizers, further fueling its demand in the market.

The organic farming practices associated with organic beer production resonate with consumers who are environmentally conscious and prioritize sustainability. The pandemic also accelerated the consumer's demand for locally sourced ingredients, which also reflected in the organic beer segment. Breweries and manufacturers are also constantly innovating and introducing new organic beer variants, catering to diverse consumer preferences. For instance, in March 2023, Big Country Organic Brewing Co., a U.S.-based organic brewery, launched three new beers in the market. The new product is made with organic ingredients and is available in three variants, including TexMex Lager, West Coast style IPA, and Hazy New England style IPA.

The growing popularity of craft beers is driving the organic beer market. Consumers are seeking organic options from small, independent breweries known for unique flavors and brewing techniques.

Key Insights

The report covers the following key insights:

• Overview of the Organic Beer Market


• Supply Chain and Regulatory Analysis


• Drivers, Restraints, and Opportunities


• Impact of COVID-19 on the Global Organic Beer Market


• Key Developments

Segmentation

Analysis by Type

The lager segment is expected to hold a major share of the global market. Lagers are one of the most popular beer styles globally, known for their light, crisp, and refreshing taste. Lagers also offer a good foundation for brewers to experiment with different organic hop varieties or organic grains, potentially creating unique flavor profiles within the lager style. For instance, in September 2023, Aslan Brewing Company, a U.S.-based craft brewery, partnered with Patagonia Provisions, the food and beverage business, and launched Kernza Lager. The new product is an organic pilsner with nutty malt characteristics and is brewed with Chinook and Pekko hops.

The ale segment is expected to grow significantly over the forecast period. The craft beer movement is a major driver of innovation and experimentation in the organic beer market. Ales compasses a wider range of styles, offering a broad spectrum of flavors and taste profiles. Ale can also be produced in seven days from an ale yeast, making it a convenient option for small breweries that do not have enough space for fermentation tanks to make beer.

Analysis by Packaging

The glass bottles segment is a popular packaging type used to pack a wide variety of alcohols, including organic beer, due to their low processing cost. Glass bottles offer a premium appeal to consumers and enhance their drinking experience.

The metal cans segment is also another major packaging used by beer manufacturers specifically tarfted for consumption at convenience . Metal cans, particularly aluminum cans, boast a very high recycling rate compared to other packaging materials. This aligns well with the sustainability focus of the organic beer market. Metal cans are lightweight and more space-efficient to transport compared to glass bottles. This translates to a lower carbon footprint throughout the supply chain, further driving the market demand.

Analysis by Distribution Channel

The on-trade segment is expected to grow significantly over the forecast period. The on-trade segment includes bars, restaurants, and pubs. The on-trade segment offers a curated selection of organic beers from local to regional craft breweries, catering to the growing demand.

The off-trade channels which consist of supermarkets, liquor stores, wine shops, and others is another major distribution channel adopted by manufacturers to sell their products to the consumers. These channels offer a wider variety of organic beer brands and styles catering to consumers who seek to explore different options and choices.

Analysis by Region

North America is expected to hold a major share of the global organic beer market. North American consumers have a growing interest in healthy and sustainable products. Organic beer aligns with this trend and is perceived as a healthier option. The organic food and beverage market in the region is more mature than in other regions, as consumers are familiar with organic products and their benefits, leading to higher market penetration. According to the Organic Trade Association, organic beverages experienced strong growth (8%) over 2021. The region’s relatively high disposable income, especially in countries such as the U.S. and Canada, allows consumers to spend more on premium organic products such as organic beer, further fueling the market growth.

Europe holds a potential position and is expected to experience steady growth in the organic beer market. Europe has a long tradition of beer consumption and growing awareness of organic products, creating a fertile ground for organic beer.

Key Market Players

The report provides the profiles of key players such as Anheuser-Busch,  Big Country Organic Brewing Co., Heineken Holding NV,  Molson Coors, Stroud Brewery, Birrificio Angelo Poretti, Allagash Brewing Co., Butcombe Brewing, Hopworks Urban Brewery, and Peak Brewing.

Key Developments

• In October 2023, Budweiser, an American-style pale lager, a brand of Belgian company AB InBev, launched its first-ever organic beer in China. The newly launched product strictly adheres to organic production standards throughout its production process.


• In April 2021, Molson Coors, a Canadian-American multinational drink and brewing company, unveiled a new organic, low-calorie beer. The product is the first to be USDA-certified organic beer, offering subtle malt sweetness with low bitterness and slight citrus hop notes.