Cider Market – Global Growth Analysis 2024-2031

The Global Cider Market is estimated to be valued at USD 4.84 Bn in 2023 and is expected to reach USD 7.04 Bn by 2031, exhibiting a compound annual growth rate (CAGR) of 4.3% from 2024 to 2031

What is Cider Market?

The cider market provides for consumers seeking to buy hard cider drinks. This market provides a range of cider items produced from fermented apple juice and other fruits. Common choices consist of classic ciders made exclusively from apples and flavored ciders mixed with berries, tree fruits, herbs, or spices. Items vary from dry to sweet styles. In addition to alcoholic ciders, the cider market also stocks non-alcoholic cider types, cider-related accessories such as glasses and openers, as well as gift sets and merchandise associated with the cider production and cider culture.

Market Overview:

The global cider market is anticipated to experience substantial growth through 2031, driven by evolving consumer preferences, increasing health consciousness, and a growing inclination towards premium and craft beverages. As of 2024, the cider industry is valued at approximately USD 9 billion, with expectations of expanding at a compound annual growth rate (CAGR) of around 6-8% over the next decade. This growth trajectory underscores a significant shift in consumer behavior, favoring cider as a sophisticated, less sugary alternative to traditional alcoholic beverages.

Key factors fueling this expansion include the rising demand for natural and organic products. Cider, with its fruit-based composition and lower sugar content compared to many other alcoholic drinks, aligns with the growing health and wellness trend. Additionally, the increasing popularity of craft and artisanal products contributes to the market's dynamism, as consumers seek unique flavors and high-quality options.

The market's regional dynamics reveal robust growth potential in North America and Europe, where craft cider is gaining prominence. Meanwhile, emerging markets in Asia-Pacific are expected to exhibit rapid adoption due to rising disposable incomes and changing lifestyle preferences.

The significance of the cider market in 2031 extends beyond mere economic value. It represents a shift towards more diverse, health-conscious, and premium alcoholic options. As consumers continue to seek novel and authentic drinking experiences, cider is well-positioned to capture a larger share of the global beverage market, reflecting broader trends in consumer behavior and product innovation.

Market Dynamics:

Drivers:

1. Health and Wellness Trends: Increasing consumer awareness of health and wellness is driving demand for cider, which is perceived as a healthier alternative to sugary and heavily processed alcoholic beverages. The natural fruit ingredients and lower sugar content appeal to health-conscious consumers.
2. Growing Popularity of Craft Beverages: The rise of the craft beverage movement has significantly boosted the demand for artisanal and premium ciders. Consumers are increasingly seeking unique flavors and high-quality products, contributing to the growth of the cider market.
3. Innovation and Product Diversification: The continuous introduction of innovative cider varieties, including flavored and spiced options, attracts diverse consumer segments and stimulates market expansion. Craft cider producers often experiment with new ingredients and brewing techniques, enhancing market appeal.
4. Increasing Disposable Incomes: Rising disposable incomes in emerging markets, particularly in Asia-Pacific and Latin America, are expanding the consumer base for premium and imported ciders.

Restraints:

1. High Production Costs: The production of high-quality cider, particularly craft varieties, involves significant costs for raw materials and manufacturing processes. These costs can be a barrier to entry for new players and affect pricing strategies.
2. Regulatory Challenges: Stringent regulations and compliance requirements related to alcohol production and labeling can pose challenges for cider producers. Varying regulations across different regions can complicate market entry and expansion.
3. Competition from Other Alcoholic Beverages: The cider market faces competition from a wide range of alcoholic beverages, including beer, wine, and spirits. This competition can limit market share and affect growth rates.

Opportunities:

1. Emerging Markets: The increasing middle-class population and changing lifestyles in emerging markets present significant growth opportunities. As these regions develop, the demand for diverse and premium alcoholic beverages, including cider, is expected to rise.
2. Sustainability and Organic Products: There is growing consumer interest in sustainable and organic products. Cider producers that adopt environmentally friendly practices and offer organic options can capitalize on this trend and differentiate themselves in the market.
3. Expansion of Distribution Channels: Expanding distribution networks, including online platforms and international markets, provides opportunities for cider brands to reach a broader audience and increase market penetration.

Challenges:

1. Seasonal Demand Fluctuations: Cider consumption can be seasonal, with higher demand during certain times of the year, such as autumn. This seasonality can lead to fluctuations in sales and affect overall market stability.
2. Market Saturation: As the cider market grows, there is a risk of market saturation, particularly in established regions. Increased competition and a proliferation of brands can make it challenging for individual companies to maintain market share.
3. Consumer Preferences Shifts: Rapid changes in consumer preferences and trends can impact the cider market. Producers must stay agile and responsive to evolving tastes and preferences to remain competitive.

• Aston Manor
• AB InBev
• Asahi Group Holdings Ltd.
• C&C Group
• Carlsberg Breweries A/S
• Heineken N.V.
• Distell Group Limited
• Molson Coors Brewing Company
• Strongbow (Heineken N.V.)
• Angry Orchard (Boston Beer Company)
• Brothers Drinks Co. Ltd.
• Kopparberg Breweries AB
• Rekorderlig Cider (Molson Coors Brewing Company)
• Westons Cider
• Savanna Cider (Distell Group Limited)
• Bulmers Cider (Heineken N.V.)
• Thatchers Cider
• Magners (C&C Group)
• Crispin Cider (AB InBev)
• Woodchuck Hard Cider (C&C Group)

Market Segmentation:

By Type:

• Apple Flavored
• Fruit Flavored
• Perry

By Distribution Channel:

• On-trade
• Off-trade
• Supermarkets & Hypermarkets
• Specialist Retailers
• Convenience Stores
• Others

By Packaging:

• Draught
• Cans
• Glass Bottles
• Plastic Bottles
• Others

By Region:

• North America
• Europe
• Asia Pacific
• Latin America
• Middle East

Covid 19 Analysis:

The COVID-19 pandemic had a mixed impact on the cider market. Initially, the market faced disruptions due to supply chain interruptions, reduced production capacity, and decreased on-premise consumption as bars and restaurants closed or operated at limited capacity. However, there was a notable shift towards off-premise consumption, including home delivery and online purchases, which partially offset the decline in on-premise sales. The pandemic accelerated the adoption of e-commerce and direct-to-consumer sales channels, providing cider brands with new growth avenues.

Additionally, the increased focus on health and wellness during the pandemic boosted interest in cider as a perceived healthier alcoholic option. Despite the challenges, the market showed resilience and adaptability, with recovery driven by innovation in product offerings and a growing preference for premium and craft beverages. As the world moves towards post-pandemic recovery, the cider market is expected to continue evolving, leveraging these new consumer behaviors and distribution trends.

Recent Development:

Innovation in Flavors and Ingredients: Recent developments include the introduction of new and exotic flavors in cider. Producers are experimenting with a variety of fruits, spices, and botanicals to create unique flavor profiles. For example, brands are offering ciders infused with ingredients like hibiscus, ginger, and tropical fruits to attract adventurous consumers.

Expansion of Sustainable Practices: Many cider producers are adopting more sustainable practices. This includes using organic apples, implementing eco-friendly packaging, and reducing water and energy consumption in production processes. Companies are increasingly transparent about their environmental impact and sustainability efforts, appealing to eco-conscious consumers.

Rise of Non-Alcoholic and Low-Alcohol Options: There is a growing trend towards non-alcoholic and low-alcohol ciders as consumers seek alternatives that align with healthier lifestyles or reduced alcohol consumption. These products are gaining traction in the market as they offer the flavor of cider without the associated alcohol content.

Regional Analysis:

North America: The cider market in North America, particularly in the United States and Canada, has shown robust growth due to the increasing popularity of craft beverages and changing consumer preferences. The market benefits from a well-established cider culture and a growing trend towards premium, artisanal products. The U.S. is one of the largest cider markets globally, driven by innovation and a diverse range of cider offerings. However, competition from other alcoholic beverages and fluctuating apple supply can impact market dynamics.

Europe: Europe is a key region for the cider market, with significant production and consumption occurring in countries like the United Kingdom, France, and Germany. The UK remains a dominant player, with a strong tradition of cider consumption and a burgeoning craft cider sector. France and Germany are also expanding their cider markets, driven by increasing interest in traditional and craft ciders. The region benefits from a rich apple-growing heritage, supporting the production of high-quality ciders.

Asia-Pacific: The Asia-Pacific region is experiencing rapid growth in the cider market due to rising disposable incomes and changing lifestyle preferences. Countries like China and Japan are seeing increased cider consumption as consumers explore diverse alcoholic beverages. The market is in a nascent stage but offers significant potential for expansion as brand awareness and distribution networks develop.

Latin America: The cider market in Latin America is relatively underdeveloped but presents growth opportunities. Increasing urbanization and rising middle-class income levels are expected to drive demand for premium and imported ciders. Market penetration is currently limited but holds promise for future growth.

Middle East and Africa: The cider market in the Middle East and Africa faces challenges due to strict alcohol regulations and cultural restrictions. However, there is potential for niche markets and premium products targeting expatriates and affluent consumers in key urban centers.

Key trends:

Growth of Craft and Premium Ciders: There is a rising preference for craft and premium ciders as consumers seek unique flavors and high-quality ingredients. Artisanal and small-batch producers are gaining popularity, driving innovation and diversity in the market.

Health-Conscious Consumption: Cider is increasingly being chosen as a healthier alcoholic option due to its fruit base and lower sugar content compared to many other alcoholic beverages. This aligns with broader health and wellness trends, driving demand for natural and organic ciders.

Flavored and Specialty Ciders: The introduction of diverse flavors and specialty ciders, such as those infused with spices or exotic fruits, is attracting a wider audience. This trend reflects consumers’ growing interest in personalized and novel drinking experiences.

Sustainability and Eco-Friendly Practices: There is a growing emphasis on sustainability within the cider industry. Producers are adopting eco-friendly practices, such as using organic apples, reducing waste, and implementing energy-efficient processes, to appeal to environmentally conscious consumers.