Beer Kegs Market Analysis Report By Raw Material, By Region And Segment Forecasts From 2019 To 2025

Industry Insights

The global beer kegs market size was accounted for USD 45.2 billion in 2018. Consumers preferring to have a premium beer and their flavored variants is a major factor propelling the growth of the market globally. A significant rise in on-premise sales is also anticipated to augment the market growth.

Increasing consumption of beer amongst the youngsters is driving the market growth. According to an analysis done by Gallup Inc., formerly known as the American Institute of Public Opinion (AIPO), based on Americans’ alcohol consumption habits unveiled that nearly 70% of men belonging to the age group of 18 to 29 preferred having a beer over other alcoholic beverages. This trend has been persisting over the years and is one of the major factors driving the growth of the market.

Consumers shifting towards flavored alcoholic beverages are most likely to prove beneficial to the market. Increasing demand for premium range of products like draught and craft variants and advancing lifestyle of consumers along with rising per capita income are propelling the market growth. Kegs aid in retaining the veritable flavor and quality of alcoholic beverages for a longer duration of time. Draught beer is mostly served through kegs for maintaining its pressure and hence, the product is likely to witness huge demand from on-trade sales.

Companies in the overall packaging industry have been concentrating on the sustainability factor of materials that would lead to an increase in the use of environment-friendly and recyclable materials. As a consequence of which steel kegs are mostly preferred when compared to other product variants. Companies are more interested in investing in recycling programs keeping in mind the changing norms and policies of the industry to tackle environmental issues. For example, Firstmile.com collaborated with KeyKeg and OneCircleBV, in December 2018, to formulate a circular program to recycle plastic kegs.

Raw Material Insights

Steel as a raw material dominated the beer kegs market with 84.7% of the share in the total revenue because of its excessive production, high endurance, and beneficial recycling properties. Steel kegs are mostly used for storage and transportation as it helps in obstructing ultraviolet rays and gases, thereby, retaining the authentic flavor and quality of the beer with the best hygiene conditions through the whole of the supply chain.

Plastic kegs are anticipated to grow at the fastest CAGR of 4.6% over the forecast period. High-price associated with producing and recycling steel or metal kegs has induced manufacturers to invest in PET plastic kegs. These kegs are given as preforms or ready-to-fill, which can be blown into a PET vessel as required at the site. They are available in several sizes ranging from 15 to 40 liters, as per requirement. Further, plastic kegs can be easily recycled and owing to their lightweight, it reduces the transportation cost when compared to steel or metal kegs.

Regional Insights

Europe dominated the market with over 29.9% of the share in the global market in 2018. The rising consumption of cider and beer is the major factor propelling the market growth in this region. Further, the increasing popularity of secondary cask fermentation and beer has led to an increase in the usage of steel barrel kegs of varying capacities. Additionally, consumers preferring more localized and craft beer produced by micro-breweries have boosted the demand for kegs. Craft beers like Hophead, Klausen Burger, Hop Hoollgans, Ground Zero, and Zaganu are produced by these micro-breweries that are popular in Europe. These micro-breweries majorly concentrate on flavor and quality. Further, constrained distribution of beer kegs by exclusive partners indicates a profitable opportunity for distributors in this region.

Asia Pacific is anticipated to grow at the fastest CAGR of 5.1% in the forecast period. The rising consumption of beer in countries like India and China has considerably aided in product sales. Changing cultural drift towards consumption of draft beer is driving the growth of the market in these and other emerging countries. Further, an increasing number of bars, pubs, and breweries has also been contributing to the growth of beer kegs market. Several companies have been investing in long-lasting packaging solutions and have been manufacturing eco-friendly beer kegs.

Beer Kegs Market Share Insights

Many companies are focusing on strategies like mergers and acquisitions to level up their product line and to build up their position in the market. Further, the companies are concentrating on increasing their manufacturing capacity and adopting new technologies to fulfill consumer demand. The major players in the market include The Metal Drum Company; Ardagh Group S.A.; Schaefer Container Systems; Ningbo BestFriends Beverage Containers Co. Ltd; NDL Keg Inc.; Julius Kleemann GmbH & Co KG; Petainer UK Holdings Ltd; Blefa GmbH;  Shinhan Industrial Co, Ltd; and  American Keg Company, LLC. 

Report Scope

Segments Covered in the Report

This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2015 to 2025. For the purpose of this study, Million Insights has segmented the global beer kegs market report based on raw material and region:

• Raw Material Outlook (Revenue, USD Billion, 2015 - 2025)
    • Steel
    • Plastics
    • Others

• Regional Outlook (Revenue, USD Billion, 2015 - 2025)
    • North America
        • U.S.
        • Canada
        • Mexico
    • Europe
        • Germany
        • U.K.
    • the Asia Pacific
        • China
        • India
    • Central & South America
        • Brazil
    • Middle East & Africa