Food and beverages

Cider Market is Estimated to Witness High Growth Owing to Rising Consumption of Alcoholic Beverages

The cider market has witnessed significant growth in recent years, driven by the rising consumption of alcoholic beverages by millennials. Cider consists of alcoholic beverages made from fermented apple juice or crushed apples that have a taste slightly sweet with some level of tartness and carbonation. It offers some health benefits such as lowering cholesterol levels, reducing inflammation, supporting bone health, and preventing osteoporosis.

The global cider market is estimated to be valued at US$ 6.44 Bn in 2024 and is expected to exhibit a CAGR of 3.1% over the forecast period 2024 to 2031.

Key Takeaways

Key players operating in the cider market are Heineken N.V., Distell Group, Halewood Wines & Spirits, Thatchers Ciders, and Kopparberg Cider.
The key opportunities in the cider market include increasing product launches catering to consumer preferences for different flavors and sugar content. Additionally, the rising demand from millennial population offers growth prospects for new product innovations.
Technological advancements such as carbonation systems and refrigeration have helped improve cider quality and shelf life. New processing and formulation techniques enable producing ciders with varied tastes.

Market drivers

The major driver for the Cider Market Size  is the growing population of young adults across regions consuming alcoholic beverages socially and recreationally. Additionally, rising disposable incomes and changing lifestyles have increased on-premises consumption of ciders in pubs, bars, and restaurants. Manufacturers promoting ciders as healthier alcohol options compared to beers and wines is another factor fueling the market growth.

Challenges in Cider Market
The cider market faces challenges related to changing consumer tastes and preferences. Cider companies have to continuously innovate and bring new flavors and variety to the market to attract consumers. Additionally, maintaining quality and taste consistency across different batches is challenging due to dependency on agricultural produce. Stringent regulations around alcohol content and labelling also impact small producers. High cost of production and limited shelf life of products are other major challenges.

SWOT Analysis
Strength: Established brand reputation and consumer base for top players; Strong growth prospects of specialty and craft ciders
Weakness: Vulnerable to changes in fruit supply and quality; Heavy reliance on specific fruit varieties exposes to climatic risks
Opportunity: Emerging demand for new flavors and variety expansion; Growth in popularity of low alcohol and low calorie ciders
Threats: Competition from beer producers increasing their portfolio; Regulatory compliance increases operational costs

Geographical Regions

In terms of value, Europe accounts for the largest share of the global cider market currently. Countries like the UK, France, Spain and Germany have a strong established cider drinking culture and are major markets.

The Asia Pacific region is projected to be the fastest growing market for cider over the forecast period from 2024 to 2031. Improving disposable incomes, growing exposure to western drinks and innovative marketing by key players are driving the demand in countries like China, Japan and India. The region offers lucrative new market opportunities for expansion of global cider brands.

*Note:
1.Source: Coherent Market Insights, Public sources, Desk research
2.We have leveraged AI tools to mine information and compile it

Money Singh

Money Singh is a seasoned content writer with over four years of experience in the market research sector. Her expertise spans various industries, including food and beverages, biotechnology, chemical and materials, defense and aerospace, consumer goods, etc.