Commercial Beer Kegerators Market Analysis Europe, APAC, North America, Middle East and Africa, South America - US, Germany, China, UK, Australia - Size and Forecast 2024-2028

Commercial Beer Kegerators Market Size 2024-2028

The commercial beer kegerators market size is estimated to increase by USD 18.8 million and grow at a CAGR of 4.8% between 2023 and 2028. The expansion of the market hinges on several factors, such as the rising proliferation of brewpubs and microbreweries, the burgeoning online visibility of vendors specializing in commercial kegerators, and the escalating demand from the craft beer sector. Challenges confronting the market encompass the considerable initial investment required and the imperative for consistent maintenance. Additionally, the market faces obstacles posed by the availability of alternatives and pre-owned commercial beer kegerators, along with the stringent regulatory frameworks enforced by governments.

What will be the Size of the Commercial Beer Kegerators Market During the Forecast Period?

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Market Segmentation

By Product

The market share growth by the commercial freestanding beer kegerators segment will be significant during the forecast period. Commercial Freestanding Keg Units are refrigeration units designed to provide cold draft beer dispensing solutions for bars, restaurants, and other commercial customers. Perfect for those who frequently pour large amounts of beer. These kegs are equipped with a tower fitted with a tap to accommodate kegs of various sizes from 1/2 keg to 1/6 keg. Designed to keep it cold and fresh until served. Additionally,  the kegs are easily accessible for cleaning and maintenance. The primary end users of commercial free-standing equipment are bars, restaurants, breweries, and caterers. Caterers can also use these kegerators for weddings and other special occasions to ensure that their customers have a cold, fresh beer.

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The commercial freestanding kegerators segment was valued at USD 37.10 million in 2018. Commercial free-standing kegerators offer a convenient and cost-effective solution for serving cold and fresh beer in commercial settings. Increasing demand for these kegerators from end-users and rising consumption worldwide will drive the growth of the commercial free-standing kegerator segment of the market during the forecast period.  

Key Regions

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APAC is estimated to contribute 38% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period. Additionally, the market in the European region has also experienced significant growth in recent years, driven by increased demand in bars, restaurants, and other eateries. The regional market is characterized by a high level of competition and innovation as companies strive to create premium, high-quality Kegerators that meet the evolving needs of consumers. One of the main drivers of market growth is the increasing demand for high-quality draft beer. Draft beer is perceived as fresher and tastier than canned or bottled beer. This has expanded the market for kegerators designed to preserve the quality and flavor over time. 

Market Dynamics and Customer Landscape

The commercial beer kegerators market caters to various settings, from household applications to social scenarios and parties. It thrives on online platforms, offering options like tap systems and multi-tap kegerator equipment for dispensing draught beer and premium craft beers. With CO2 tanks and stainless steel construction ensuring freshness and durability, these kegerators maintain the flavor and quality of beverages. They serve both the retail and brewery markets, meeting the demands of the functional beverages market while promoting sustainable development in smart home and living contexts. Brands like Continental Refrigerator contribute to this dynamic industry, driven by innovation and the industrial internet. Our researchers analyzed the data with 2022 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.

Key Market Driver

An increasing number of brewpubs and microbreweries is notably driving the market growth. They are commonly used in brewpubs, microbreweries, restaurants, and bars. Brewpubs are restaurant breweries that sell about a quarter to half of the beer they produce on-site, while microbreweries sell 25% of the beer they produce on-site. Brewpubs and microbreweries use these to reduce operating costs. Therefore, the demand depends on the number of breweries and other food service centers operating around the world.

The launch of new brewpubs and microbreweries will also drive the penetration of these products in developed countries during the forecast period. The market in emerging markets such as India is still in its early stages. However, the recent increase in the number of microbreweries and brewpubs is expected to increase the demand in the country. About 500 new brewpubs are expected to open in India during the forecast period. Hence, an increase in the number of brewpubs and microbreweries will boost the growth of the market during the forecast period. 

Significant Market Trends

Automation of beer pouring is a key trend influencing the market growth. Waste from manual taps is a major challenge for market growth. Therefore, the vendor is automating their tap solutions. For example, Innovative Tap Solutions (PourMyBeer) offers an automated dispensing solution for keg devices. Automated injection in these facilities is becoming increasingly popular as it offers many benefits for both bar owners and customers. By automating the injection process, companies can improve efficiency, reduce waste, and ensure consistent injection every time.

Autotap is equipped with an interactive screen that allows the consumer to select a beer. Consumers receive a radio frequency identification (RFID) card after their identity (ID) has been verified. As soon as the RFID card is inserted into the slot above the desired tap, the system recognizes the card and grants access. The system also allows the consumer to check available balances and real-time drink counters while grabbing a beer. Such features in these machines reduce waste during tapping and allow consumers to monitor how much they drink. Automation of the tapping application eliminates the need for manual labor in the process. Hence, due to its advantages, automated taps will become a key trend in the market, which is expected to boost the market growth during the forecast period.  

Major Market Challenge

The high initial cost and the need for regular maintenance is challenging the market growth. High initial costs and the need for regular maintenance of the equipment are significant impediments to the growth of the market. The average cost of a new one is USD 1,500 to USD 4,000. Therefore, end-users who run small businesses cannot afford to purchase such products. Higher initial costs are one of the main reasons for the lower penetration in countries such as China, India, and South Africa compared to developed countries in North America and Europe.

Commercial kegs require regular maintenance to prevent malfunction. Improper maintenance of the equipment can contaminate the beer, increase pressure and cause scale in the tap line, which leads to bacteria, yield, and yeast growth. Such colonies can also lead to the contamination of the kegs. This equipment, therefore, requires regular maintenance checks to avoid such problems. Therefore, high initial set-up, labor, and other maintenance costs are likely to hinder the market growth during the forecast period.  

Key Market Customer Landscape

The report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.

Market Customer Landscape

Who are the Major Commercial Beer Kegerators Market Players?

Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.

Ali Group Srl: Under its brand " BEVERAGE-AIR" the company offers commercial beer kegerators.

The report also includes detailed analyses of the competitive landscape of the market and information about 15 market companies, including:

• Beer Meister LLC
• Brew Driver
• Danby
• Felix Storch Inc.
• Ferguson plc
• Iron Mountain Refrigeration and Equipment LLC
• Kanteen India Equipments Co.
• Keg King
• Kegco
• Kegworks
• Love Beer Bars Ltd.
• Marvel Refrigeration
• Micro Matic USA Inc.
• NARU EQUIPMENT
• Perlick Corp.

Qualitative and quantitative analysis of vendors has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize vendors as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize vendors as dominant, leading, strong, tentative, and weak.

Segment Overview

The market research report provides comprehensive data (region wise segment analysis), with forecasts and estimates in "USD Million" for the period 2024 to 2028, as well as historical data from 2018 to 2022 for the following segments.

• Product Outlook
  • Commercial freestanding beer kegerators
  • Commercial built-in beer kegerators

• Application Outlook
  • Commercial
  • Household

• Region Outlook
  • North America
    • The U.S.
    • Canada
  • Europe
    • U.K.
    • Germany
    • France
    • Rest of Europe
  • APAC
    • China
    • India
  • South America
    • Chile
    • Brazil
  • Middle East & Africa
    • Saudi Arabia
    • South Africa
    • Rest of the Middle East & Africa

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Market Analyst Overview

The market is thriving due to various factors such as the growing popularity of craft beers, especially in social scenarios like parties. Online platforms have also contributed to market growth by providing easy access to kegerator equipment. These systems, typically made from stainless steel and capable of holding up to 15 gallons, ensure that beer remains fresh and carbonated, enhancing the drinking experience. The market caters to both the brewing industry and bar and restaurants, offering solutions ranging from half barrel kegs to multi-tap kegerator equipment. Additionally, advancements in production technology have led to more sustainable and efficient beer keg systems, aligning with the trend toward sustainability and smart home living.

Furthermore, the brewery market serves a vital role in the craft beer industry and beyond, catering to diverse settings from households to bars and restaurants. Equipped with features like a CO2 tank for carbonation, these kegerators ensure the optimal serving experience, with glasses and cups ready for draught beer enjoyment. Designed to accommodate various needs, they preserve the freshness and flavor of premium craft beers, extending their shelf life. Built with steel beer keg systems, they offer durability and reliability for both home brewing enthusiasts and professional settings. As the industry evolves with advanced technologies and embraces sustainable development, commercial beer kegerators are becoming integral components of smart home and living environments, leveraging the industrial internet for enhanced performance.

Moreover, the beer keg system market is not confined to breweries; it extends to various household applications and the retail market, catering to diverse consumer needs. With options like half barrel keg and multi tap kegerator equipment, consumers can enjoy a wide range of beverages, contributing to the thriving functional beverages market. Brands like Continental Refrigerator play a crucial role, offering reliable solutions that meet industry standards and government regulations. As sales soar and the market expands, understanding industry structure and capacity becomes essential for businesses aiming to secure a competitive edge and achieve a higher industry ranking.

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What are the Key Data Covered in this Market Forecast Report?

• CAGR of the market during the forecast period
• Detailed information on factors that will drive the market growth and forecasting of the market between 2024 and 2028
• Precise estimation of the market size and its contribution to the parent market
• Accurate predictions about upcoming market trends and analysis and changes in consumer behavior
• Growth of the market across Europe, North America, APAC, South America, and Middle East and Africa
• Thorough market growth analysis of the market’s competitive landscape and detailed information about companies
• Comprehensive market analysis and report on the factors that will challenge the market research and growth of market companies

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