Beer Production in the UK Industry Market Research Report Now Updated by IBISWorld

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The Beer Production industry has been in decline for the past five years. Beer consumption has fallen sharply due to rising alcohol duty, the introduction of a ban on smoking in pubs and growing competition from other beverages, such as wine and cider. The onset of the recession, changing societal trends and the ageing population have also taken their toll on the industry. After a tough year in 2011-12, the industry is expected to return to growth in 2012-13, with revenue forecast to increase by 1.9%. During the five years through 2012-13, industry revenue is expected to decline at an annualised 0.1% to total £8.21 billion. The industry will remain under the pump over the next five years. Sales will continue to suffer as the weak economy, competition from other alcoholic beverages and changing societal trends constrain demand. Despite this, sales of premium beers including craft beers, real ales and low-carbohydrate beers should perform well. Beer consumption will continue to decline as the population ages and younger drinkers are increasingly drawn to other beverages. Industry revenue is forecast to grow slightly over the next five years to 2017-18. For these reasons, industry research firm IBISWorld has updated its report on the Beer Production industry.

IBISWorld Market Research

IBISWorld Market Research

Profit will improve as prices increase, yet competition remains fierce

The Beer Production industry has been in decline for the past five years. According to IBISWorld industry analyst Steven Connelll, “beer consumption has fallen sharply due to rising alcohol duty, the introduction of a ban on smoking in pubs and growing competition from other beverages, such as wine and cider”. The onset of the recession, changing societal trends and the ageing population have also taken their toll on the industry. After a tough year in 2011-12, the industry is expected to return to growth in 2012-13, with revenue forecast to increase by 1.9%. Warmer weather and a number of major events, headed by the London Olympic Games, will bolster sales. During the five years through 2012-13, industry revenue is expected to decline at an annualised 0.1% to total £8.21 billion.

The industry will remain under the pump over the next five years. Sales will continue to suffer as the weak economy, competition from other alcoholic beverages and changing societal trends constrain demand. Despite this, sales of premium beers including craft beers, real ales and low-carbohydrate beers should perform well. The introduction of a 40 pence minimum price will hurt supermarket sales of cheap lager but could prove a timely boon to pub operators. Connell adds, “beer consumption will continue to decline as the population ages and younger drinkers are increasingly drawn to other beverages”. Industry revenue is forecast to grow over the next five years to 2017-18.

The Beer Production industry displays a high level of market share concentration. The four major multinational brewers - Heineken UK, Molson Coors UK, InBev UK and Carlsberg UK - generate more than 75% of industry revenue. This trend is repeated at a global level. Consolidation has increased strongly over the last decade.

For more information on the Beer Production industry, including latest industry trends, statistics, analysis and market share information, purchase the full report from IBISWorld, the nation’s largest publisher of industry research.

IBISWorld industry Report Key Topics

The Beer Production industry buys barley, malt, sugar, yeast and other ingredients, which are processed into various beer products including draught, bitter, heavy, light and cold filtered lager, ale and stout. The beer, ale and stout is packaged in kegs for sale to pubs, bars and hotels and also packaged in cans and bottles for sale to wholesale and retail alcoholic beverage distributors.

Industry Performance
Executive Summary
Key External Drivers
Current Performance
Industry Outlook
Industry Life Cycle
Products & Markets
Supply Chain
Products & Services
Major Markets
Globalisation & Trade
Business Locations
Competitive Landscape
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
Major Companies
Operating Conditions
Capital Intensity
Key Statistics
Industry Data
Annual Change
Key Ratios

About IBISWorld
Recognised as the nation’s most trusted independent source of industry and market research, IBISWorld offers a comprehensive database of unique information and analysis on many UK industries. With an extensive online portfolio, valued for its depth and scope, the company equips clients with the insight necessary to make better business decisions. Headquartered in London, IBISWorld serves a range of business, professional service and government organisations through more than 10 locations worldwide. For more information, visit http://www.ibisworld.co.uk or call (020) 3008 6568.

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Gavin Smith
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