category review

Beer and Cider

Subcategory Report H1 2019

• October 2019
 Methodology and notes
• This report is a product launch analysis for the Beer & Cider cluster and
initially presents a brief analysis of the Alcoholic Beverages category. The
report also dives deeper into the product launch, positioning and flavor trends
in the Beer & Cider cluster and its subcategories.
• The semi-annual NPD trends analysis covers the last 3 bi-annual periods: H1
2018 to H1 2019, where H1 2019 represents the first half of 2019.
• The Beer & Cider category includes the following subcategories: Beer, Cider
• Beer: Includes all beers, ales, stouts, lager, light beer, flavored beer, low alcohol
or alcohol-free beers and specialty beers. Includes diluted beer drinks like
Claras or Shandies. Note: difference between ginger beer and ginger ale. Ginger
beer would be classified under the beer category (base ginger beer). Ginger ale
would be classified under the carbonates category (flavor – ginger ale; no base).

• Indexed product launch numbers are obtained by assigning ‘100’ to the start • Cider: Includes all alcoholic ciders and perries. Non-alcoholic versions of cider
year values and using 100 as the base calculating all later values in proportion and perries should also be included under this category.
to the actual product launch numbers. CAGR stands for compounded annual
growth rate.

• Optimizing the positioning trends section: Positionings such as Convenience

related claims, Ethical claims and Allergy – widespread and occupying high
share across Food & Beverage categories are excluded so as to showcase more
relevant top claims for each category/subcategory.

• Geographic analysis covers six major regions – North America, Europe, Asia,
Australia/New Zealand, Latin America, and Middle East/North Africa (MENA).
MENA covers all countries under Middle East and Algeria, Egypt, Morocco,
Tunisia under North Africa

Source: Innova New Products Database and Innova Food Metrix

2 INNOVA MARKET INSIGHTS

 NPD trends in beer and cider: summary

North America has the highest

share for beer and cider NPD Natural, low sugar,
within alcoholic beverages low calorie and
category in H1 2019 GMO free among
Beer, commanding 93% fast growing claims
share, is the top subcategory in H1 2019
in H1 2019

Beer and cider

exhibited a growing Blood orange, tequila,
trend and recorded a guava, watermelon
CAGR of 14.4% and cranberry are
during 2015-19(E) increasingly popular
in H1 2019

Source: Innova New Products Database and Innova Food Metrix

3 INNOVA MARKET INSIGHTS

category review

Category
Analysis
 Beer and cider NPD showed an increasing trend
• Burgeoning appetite for local and craft brews, unusual infusions (iced coffee,
kombucha), indulgent flavors (berry muffin), seasonal editions, bourbon-forward
beers, alcohol-free options, reduction claims (sugar and calorie), regional drinks
especially Asian beverages are key drivers.
• In addition, keto-friendly products, botanical and floral formulations, wine-
inspired ciders (rose ciders), spiced-up versions, packaging designs with vibrant
and illustrative imagery and on-the-go packaging are propelling the NPD
growth of beer and cider subcategory.

Figure 1 | Relative development of Beer & Cider launches vs. Alcoholic Beverages category

Source: Innova New Products Database

5 INNOVA MARKET INSIGHTS

Beer and cider holds an average 42% share of alcoholic beverages sales
value during 2015 to 2019(E)
Figure 2 | Beer & Cider sales value as a percentage of global Alcoholic Beverages sales value

Global Beer &

Cider sales value €444.7 billion €459.0 billion €474.0 billion €491.5 billion €512.5 billion 4.0%CAGR(2017-19)

Global Alcoholic
Beverages sales €1,049.1 billion €1,089.0 billion €1,132.9 billion €1,183.4 billion €1,242.1 billion 4.7% CAGR(2017-19)
value

Source: Innova Food Metrix

6 INNOVA MARKET INSIGHTS

Beer, with an average 93% share, is the dominant subcategory within
beer and cider launches
Figure 3 | Global Beer & Cider category launches, by subcategory

• Beer is the fastest growing

subcategory at a CAGR 15%
within beer and cider cluster
category launches during 2015
to 2019(E)

• Heineken is the top company

for beer and cider launches
tracked in H1 2019, followed
by Carlsberg

Source: Innova New Products Database

7 INNOVA MARKET INSIGHTS

Beer is the dominant subcategory for beer and cider launches

Essa Pineapple And Grapefruit Beer Gletscher Brau Beer Krusovice Kralovska 10 Light Beer
Ukraine, Jun 2019 VIEW DETAILS Switzerland, Jun 2019 VIEW DETAILS
Czech Republic, Jun VIEW
DESCRIPTION Pasteurized, special lager beer DESCRIPTION Lager beer with 4.8% alcohol by
with pineapple and grapefruit flavor, in a 500ml volume, in a 500ml aluminum can. 2019 DETAILS
aluminum can.
DESCRIPTION Light pasteurized beer
with 4.2% alcohol by volume, in a
500ml aluminum can.
Source: Innova Database 2019

8 INNOVA MARKET INSIGHTS

 Beer is the top subcategory across all the regions
• MENA has the highest share of beer NPD as a percentage of beer and cider • Australia/New Zealand has the highest share of cider launches as a percentage
category launches, closely followed by Latin America during H1 2018 to H1 of beer and cider cluster launches over the last 3 half years.
2019.
Figure 4 | Beer & Cider subcategory launches by region, H1 2018 - H1 2019

Source: Innova New Products Database

9 INNOVA MARKET INSIGHTS

Beer and cider as a percentage of alcoholic beverages category declined
(YoY) across most regions
Figure 5 | Beer & Cider launches as percentage of Alcoholic Beverages category launches, by region

• In H1 2019, beer and cider as a

percentage of alcoholic beverages
category increased (YoY) only in
Middle East/North Africa

• North America has the highest share of

beer and cider NPD as a percentage of
alcoholic beverages category in H1 2019

Source: Innova New Products Database

10 INNOVA MARKET INSIGHTS

category review

Beer
 Beer NPD is on an upward trend during 2015 to 2019(E)
• Booming demand for craft beers, regional specialties (Japanese rice beer, Italian
Pilsner), exotic formulations (berry muffin, ice cream), floral and botanical
extracts, popularity of brut IPA, sour flavors, low and no calorie/alcohol brews,
attractive and on-the-go packaging are powering the NPD growth.
• In terms of beer subcategory sales, volume growth is greater than the value
growth during 2015 to 2019(E) and value and volume growth for beer
subcategory averaged at 3.5% and 4.3%, respectively.

Figure 6 | Growth in Beer new product launches vs value & consumption

For 2019 product launches are extrapolated, sales value and volume are forecasted

Source: Innova New Products Database and Innova Food Metrix

12 INNOVA MARKET INSIGHTS
category review

Cider
 Cider NPD exhibited a fluctuating trend
• Popularity of ciders, low and no alcohol options, appetite for fruity ciders, • The market achieved its strongest performance in 2016, when it grew by 43%
premiumized berry and floral variants, cocktail themed versions, craft ciders, over its previous year and its weakest performance in 2017, when it fell by
fine ciders highlighting terroir and convenient packaging are fuelling the NPD -23% over 2016.
growth of cider subcategory.
Figure 7 | Growth in Cider new product launches vs value & consumption

For 2019 product launches are extrapolated, sales value and volume are forecasted

Source: Innova New Products Database and Innova Food Metrix

14 INNOVA MARKET INSIGHTS
category review

Positioning
Trends
 Traditional is the leading positioning for beer and cider NPD
• Traditional and gluten free, featuring in the top 5 claims, are gaining
prominence due to both strong growth and penetration in H1 2019.
Figure 8 | Top 5 positionings for Beer & Cider
• Apart from the top 5 claims, other positionings growing in popularity in H1
2019 are: natural, low sugar, low calorie, vegetarian, GMO free and no
additives/preservatives.

Source: Innova New Products Database

16 INNOVA MARKET INSIGHTS

 Top positionings vary across the regions

What’s trending across regions? Figure 9 | Top 5 positionings as % of Beer & Cider launches tracked, by region (H1 2018 - H1 2019)

Seasonal/In-Out Indulgent &

Region Traditional Gluten Free Organic
Apart from the top 5 positionings, other Products Premium
positionings growing across the regions are:
North America 8% 20% 3% 4% 3%
•North America: GMO free, natural, low calorie

•Europe: natural, low sugar, sugar free, low calorie Europe 15% 7% 8% 3% 5%

•Asia: natural, vegetarian

Asia 12% 14% 18% 2% -
•Latin America: natural, no additives/
preservatives Australia/New Zealand 7% 14% 4% 6% 1%

•Australia/New Zealand: traditional, vegan, sugar

free Latin America 17% 5% 15% 1% -

•MENA: indulgent and premium, no trans fats, Middle East/North

13% 6% 18% 0% -
natural Africa

Percentages may be greater than 100% due to multiple positionings per product

Source: Innova New Products Database

17 INNOVA MARKET INSIGHTS

Well-established traditional style launches

Somersby Cider With Blueberry Stiegl Hausbier Zolibat Triple Beer Steinbeck Cerveja Extra: Extra Beer

Juice Austria, Apr 2019 VIEW DETAILS Brazil, Mar 2019 VIEW DETAILS
DESCRIPTION Triple beer with 8.2% alcohol by DESCRIPTION Extra beer with 5.3% alcohol by
Ukraine, May 2019 VIEW volume, in a 750ml glass bottle. This traditional volume, in a 600ml glass bottle. Contains 5.3%
DETAILS beer style shines in radiant amber with lush foamy alcohol by volume. Malt and imported hops.
mountains. Traditional export.
DESCRIPTION Somersby with
blueberry juice combines traditional
Source: Innova Database 2019
apple sweet notes with refreshing
berry sourness, in a 500ml glass bottle. 18 INNOVA MARKET INSIGHTS
Familiar seasonal/in-out launches
Black Oak Brewing Co Nox Aeterna Smoked
Oatmeal Stout
Canada, Mar 2019 VIEW DETAILS
DESCRIPTION Strong and oaky on the palate,
dark as night in color, the Nox Aterna smoked
oatmeal stout is brewed seasonally using flaked
oats and locally roasted coffee.
Source: Innova Database 2019
Newstead Brewing Co Cyclone Season Summer
Lager Beer
Australia, Feb 2019 VIEW DETAILS
DESCRIPTION Cyclone season summer lager with
4.9% alcohol content, in a 375ml aluminum can.
Malt flavors in the background, and a yeast character
flat on the ground.
Stem Ciders Off Dry Chile Guava Apple Cider
United States, Jan 2019 VIEW DETAILS
DESCRIPTION Chile guava apple cider infused
with guajillo chillies, in a 355ml easy-to-open
aluminum can. Crafted with fresh pressed apple juice,
guava and a guajillo chilli infusion. Gluten free.
Seasonal product. Off dry cider.
19 INNOVA MARKET INSIGHTS
Popular indulgent & premium claims

Hanoi Beer Premium Beer

Suntory Premium Pure Draft Carlsberg Special Edition
Beer Vietnam, Feb 2019 VIEW DETAILS
Summer 2019 Beer
DESCRIPTION Premium beer with 4.9% alcohol by
China, May 2019 VIEW Israel, Apr 2019 VIEW volume, in a 330ml easy-to-open aluminum can.
Premium.
DETAILS DETAILS
DESCRIPTION Premium draft DESCRIPTION Special edition
beer with
Innova3% alcohol
2019 by volume, in
Source: Database summer E2019 beer with 5%
a aluminum can. Suntory's original
alcohol by volume, in a 500ml 20 INNOVA MARKET INSIGHTS
draft brewing technology brings you
The quest for organic claims continues

Elbler Flut Frisch Vom Deich Dupont Biere De Miel Biologique: Organic Aspall Suffolk Organic Cyder
Honey Beer
Stark Bio Cider: Strong Organic United Kingdom, Mar VIEW
Italy, May 2019 VIEW DETAILS
Cider 2019 DETAILS
DESCRIPTION Organic beer with honey, in a
3300ml glass bottle. Contains 8% alcohol by DESCRIPTION A chewy and earthy organic
Germany, May 2019 VIEW cider with a rustic quality, and an extra
volume. Organic.
DETAILS astringency from the tannins. Organic
certification GB-ORG-05 EU/Non-EU
DESCRIPTION
Source: Strong,
Innova Database 2019pure, Agriculture.
handmade cider with a fresh-dry
21 INNOVA MARKET INSIGHTS
taste, in a 330ml glass bottle. Real
category review

Flavor Trends
 Highly fragmented flavors; fruit flavors are prominent

Figure 10 | Top 5 flavors for Beer & Cider

Apart from the top 5 flavors,

tequila, red grape, watermelon,
guava, cranberry, blood orange
and strawberry are growing in
popularity in H1 2019.

Source: Innova New Products Database

23 INNOVA MARKET INSIGHTS

 Lemon flavor is popular across the emerging economies

What’s trending across regions? Figure 11 | Top 5 flavors as % of Beer & Cider launches tracked, by region (H1 2018 - H1 2019)

Apart from the top 5 flavors, other flavors

growing across the regions are:

•North America: blood orange, strawberry, orange,

mango, cranberry

•Europe: tequila, watermelon, mango, pineapple,

blackberry

Source: Innova New Products Database

24 INNOVA MARKET INSIGHTS

Lemon is the top flavor

Bud Light Lemon Tea Lager Savanna Non Alcoholic Lemon Cider
Redds Mango I Cytrina: Mango
United States, Jun 2019 VIEW DETAILS And Lemon Beer South Africa, Apr 2019 VIEW
DESCRIPTION A unique twist on America’s DETAILS
favorite light lager. It’s brewed on real lemon peels Poland, Jun 2019 VIEW
and then aged on real tea leaves for a refreshing DETAILS DESCRIPTION Unapologetically bold,
lemon tea taste in every sip. Savanna Lemon gives you the same crisp
DESCRIPTION Mango and lemon taste of Savanna Cider without the alcohol.
beer with 4% alcohol content, in a It's tangylemon zing is the perfect option for
Source: Innova Database 2019 any time or occasion and it's available at
glass bottle. The combination of the leading retailers across SA.
sweetness of the tropics and 25 INNOVA MARKET INSIGHTS
Raspberry flavor shares the lead
Okocim Radler Malina Z Borowka
Amerykanska: Radler With
Raspberry And Blueberry
Poland, Jun 2019 VIEW
DETAILS
DESCRIPTION Radler with a mix of
Okocim beer with lemonade flavored
Source: Innova Database 2019
with raspberry-blueberry, in a 500ml
aluminum can.
Founders Rubaeus Pure Raspberry Ale
United Kingdom, Feb 2019 VIEW DETAILS
DESCRIPTION Pure raspberry ale with 5.7%
alcohol by volume, in a 355ml aluminum can.
Contains 5.7% alcohol by volume. Contains 2 UK
units of alcohol.15 UBUs.
Wayward Brewing Raspberry Berliner Weisse
Dry And Refreshing Sour Ale
Australia, Jan 2019 VIEW
DETAILS
DESCRIPTION This ridiculously refreshing
beer is Wayward Brewing's take on the classic
Berliner Weisse style. Bursting with bright
raspberry flavors, balanced by zippy tartness
and a crisp, dry finish.
26 INNOVA MARKET INSIGHTS
Emerging blood orange flavor

Bulmers Zesty Blood Orange Cider 10 Barrel Brewing Co Blood Orange IPA Vocation Twisted Sour Valencia And Blood
Orange Sour Beer
United States, Jun 2019 VIEW DETAILS
United Kingdom, Jun 2019 VIEW DETAILS
DESCRIPTION This juicy, citrus infused IPA was
Norway, Jun 2019 VIEW brewed with a huge dry hop addition of Simcoe, DESCRIPTION Valencia and blood orange sour
DETAILS Mosaic and Equinox hops to proved an enticing hop beer in a 440ml aluminum can. This is the super-
aroma. Subtle sweetness from blood orange juice crisp, teasingly twisted taste of summer.
DESCRIPTION A refreshing apple and zest balance the aggressive hop flavor and
cider fermented naturally from finest aroma.
applesInnova
Source: withDatabase
zesty blood
2019 orange
flavor, in a 500ml glass bottle.
27 INNOVA MARKET INSIGHTS
What's next - 5 things that could shape/impact the beer and cider
subcategory
Upward NPD trend despite mature
market
Beer dominates and leads growth, with
cider focused on the developed regions
Traditional, limited edition and
premium products popular
Interest in clean label, free from and
low and light options
Fruit leads fragmented flavors
Source: Innova New Products Database
The beer and cider market is relatively mature, with the predominant beer market in particular now significant in most parts
of the world. It accounted for 41% of alcoholic beverage sales value in 2019, while its share of NPD varied from 55% in
North America to 33% in MENA. It has seen a consistent upward trend over the 2015 to 2019 period, with a CAGR of
14.4%, only slightly behind the 15.2% achieved by the alcohol category as a whole.
Beer is a much larger and more developed market than cider, accounting for 93% of NPD in H1 2019. It dominates in all
regions, although share varies from 100% in MENA to 84% in Australia/NZ. Interest in cider is still largely focused in the
developed markets, with the share of cider peaking at 16% in Australia/NZ (from a small base), but also relatively strong in
Europe on 9%.
The top three positionings for H1 2019 are traditional, seasonal/in-out and indulgent & premium, used for 14%, 11% and 7%
of launches, respectively. Their popularity does vary according to region, however, with traditional leading in Europe and
Latin America, seasonal/in-out in North America and Australia/NZ and indulgent & premium in Asia and MENA.
Organic is the number five positioning for H1 2019, reflecting the ongoing interest in clean labelling, while natural, GMO
free and no additives/preservatives claims are also rising, but from a smaller base. The other main area of interest are free
from (gluten free and vegetarian) and low and light options, with low sugar and low calorie positionings increasingly in
evidence, although from a low base outside the top five.
The majority of the beer and cider subcategory remains unflavored, with flavor use largely focusing on fruit flavored beer
and cider. Flavor use is fragmented, however, with none of the top five flavors (lemon, raspberry, grapefruit, cherry and
lime) used for more than 1% of H1 2019 launches. While lemon remains particularly popular in the emerging regions, newer
styles such as raspberry now lead in developed markets such as North America and Europe and more exotic fruit flavors are
also in evidence.
28 INNOVA MARKET INSIGHTS
 Innova Market Insights
Innova operates the biggest food
and drink product database in the world.
Disclaimer
We pick up and record brands,
The information in this document is intended for
informational and educational purposes only. ingredients, claims, packaging, patents
Content including trademarks, brands and images & promotions in every major market.
are the property of their respective owners. Innova
EMAIL
Market Insights is in no way liable for
contact@innovami.com
consequences associated with the contents of this
document. Innova Market Insights may amend this Velperweg 18
document at any time without notice and no
PHONE 6824 BH Arnhem
guarantees are offered in relation to any external
links provided. +31 26 319 2000 The Netherlands

29 INNOVA MARKET INSIGHTS