Beer
is an alcoholic beverage composed from enzymes and starch derived
from malts, grains, or cereals, and has been consumed by humans for
centuries. Hops are included in the formulation of beer to act as a
preservative and to add a natural bitter taste. Other ingredients
such as herbs, brewer’s yeast, malted barley, wheat, and fruits are
added in particular types of beer during the brewing process. Beer is
the most commonly drunk beverage worldwide after water and tea. Beer
has 4% to 6% alcohol content. In most countries, beer is monitored by
state and federal governments, unlike other fruit or carbonated
drinks.
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Lager
Leads Latin-America-and-Middle-East-Beer-Market
The
beer market is segmented according to type into non-alcoholic, dark,
stout, and lager. Lager is the largest product segment within beer
consumption, with a 99.43% share in the Latin America and Middle East
Beer Market in 2014, and a 79.01% share in the Middle East. The lager
market seems to be growing in Latin America and the Middle East,
increasing at a CAGR of 3.1% and 1.3%, respectively, from 2015 to
2021. Lager’s popularity over beer is because of its flavor being
less bitter than dark or stout beer. The bitter flavor of other kinds
of beer is a major restraining factor acting on the beer market, as
other beverages with more agreeable flavors are increasingly
preferred over beer.
The
market for beer in Latin America was worth more than US$57,000
million in 2014, whereas the Middle East market for beer had a total
value of US$3,585 million. The two markets are expected to expand at
a CAGR of 4.4% and 4.3%, respectively, and reach market values of
US$77,137 million and US$4,861.6 million, respectively.
Brazil
Growing in Stature in Latin America Beer Market, Nonalcoholic Beer
Reigns in Middle East
Due
to there being no stringent rules or regulations and due to favorable
climatic conditions, Brazil is growing as a market for beer in the
Latin American region. Brazil was the largest market for beer in
Latin America in 2014, with a 60.2% share.
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Due
to stringent governmental regulations that restrict alcohol, Middle
Eastern countries are major consumers of nonalcoholic beers. These
rules and regulations prohibit alcohol consumption in some areas of
the Middle East, such as Saudi Arabia. In the UAE and Egypt, regular
beer is consumed as the regulations against alcohol are more lenient.
In Latin America, the absence of such regulations means that
alcoholic beer consumption is higher than that of nonalcoholic beer.
Factors
that drive the beer market include rapid urbanization and
consequently growing disposable incomes, growth in the number of beer
consumers, effective marketing and promotional techniques, and the
growing variety of available beer types. The beer market is also
governed by economic conditions and government regulations and prices
of ingredients used to brew beer. Breweries are now making organic
beer varieties, as these beer flavors have high demand owing to
increasing health consciousness among consumers.
Major
players in the beer industry include Heineken N.V, Ambev S.A,
Anheuser-Busch InBev, SABMiller Plc. and Carlsberg Group.
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