Barware Market Overview
Barware has become a growing phenomenon in households across the globe in recent years. This has led to a steady expansion of the barware market. Barware is intended for utility and aesthetic purposes; it is widely used in residential as well as commercial sectors.
Barware includes all types of glasses, such as wine glasses, sherry glasses, shot glasses, beer mugs, highballs, etc., and other tools, trays, utensils, accessories and mixing equipment required to make and serve beverages.
While most glasses are made from conventional silicate glass, the other equipment is usually made from steel, ceramic, plastic, wood or glass.
Despite steady growth in previous years, the barware market is likely to see a slump in the next few years due to the adverse effects of the Covid-19 situation on global incomes, and the hospitality and transport sectors.
Drivers and Trends in the Barware Market
The global trend of a swelling and consolidating middle-class is driving the barware market as in-house bars are often viewed as a stepping stone for upward social mobility. This has also led to diversification of barware products as manufacturers feel the need to offer greater variety.
An increase in number of in-house bars has resulted in barware being viewed as part of the home décor and not merely a utility tool. This has led to consumers seeking visually appealing products that can complement their furnishings.
Simultaneously, the number of tipplers has also seen an increase over the years, leading to a growing demand for barware. Gifting of barware sets and items is also an emerging trend among all adult age groups.
Growing concerns about the environment and health hazards associated with plastic has also led to a trend of consumers opting for environment and health-friendly alternatives.
In the hospitality sector, the growth in barware procurement has been mainly driven by the fast mushrooming single restaurants and bars sector, even as established hotels continue to be regular purchasers of barware.
This situation is especially true in emerging economies where disposable incomes of the middle-class are rapidly rising.
Distribution Channels and the Unorganised Sector
Another trend has been diversification of distribution channels since online vendors have made purchases convenient for consumers. Initially, this was expected to help control the unorganised barware sector, but the multiplicity of online platforms has meant that the challenge for conventional manufacturers and vendors still persists.
The unorganised barware sector has traditionally been a key challenge for players in the organised sector and governments alike since it allows for circumvention of tariffs and supply of cheap products, besides undermining trade and labour laws.
Impact of Covid-19
The hospitality sector, which is by far the largest commercial segment for the barware market, is expected to bear the brunt of the Covid-19 pandemic and imminent economic crisis. Furthermore, the aviation sector, another key commercial segment for the barware market, will also be adversely affected by the Covid-19 crisis.
The crisis is also likely to lead to a decrease in disposable incomes of people across the world. This means that people may be less willing to spend on their in-house bars; they may also be less keen on frequently patronising restaurants, bars, cafes and pubs.
On the positive front, metal products and unbreakable glasses have seen an upswing in the barware market and this trend may intensify as consumers seek durable products in the face of economic hardship. Plastic products may also see a come back due to their affordability.
North America and Europe have been the dominant regional segments in the barware market due to consolidated patterns of beverage consumption and high standards of living. These are also the regions where most key players are based.
The Asia-Pacific region has been fastest growing market segment in the past decade, though the hospitality and aviation sectors in the region are likely to be acutely affected by the Covid-19 crisis.
Other dispersed markets across the rest of the world have occupied a much smaller market share, but offer huge opportunities for manufacturers and vendors.
The barware market has been fragmented due to a large number of players vying for an increased market share through unique promotional ventures, mergers and acquisitions.
In the post- Covid-19 scenario, the market may see further fragmentation due to entry of new local players, even as the unorganised sector will continue to be a challenge.
Some of the key players in the barware market include
- Lifetime Brands
- Williams Sonoma
- True Fabrications
- Rachael Ray
- Cocktail Kingdom
- Schott Zwiesel and Fiskars
Regions and Countries Analyzed in the Report
- North America (U.S., Canada)
- Latin America (Mexico, Brazil, Rest of LATAM)
- Europe (Germany, U.K., France, Italy, Spain, Poland, Russia, Rest of Europe)
- East Asia (China, Japan, South Korea)
- South Asia (India, Thailand, Malaysia, Vietnam, Indonesia)
- Oceania (Australia, New Zealand)
- Middle East & Africa (GCC Countries, Turkey, Northern Africa, South Africa)