Despite lower beer consumption, revenue grows due to changing tastes
Melbourne, Australia (PRWEB) May 28, 2013
The Craft Beer Production industry has flourished over the past decade. According to IBISWorld industry analyst Naren Sivasailam, “the industry has benefited from changing consumers tastes, particularly the move towards premium beer and an emphasis on quality over quantity across the liquor retailing landscape.” The craft beer industry has expanded dramatically to include over a 100 breweries across the country, producing a dizzying variety of styles and flavours.
The industry is highly fragmented despite the presence of major brewers such as Lion Pty Ltd and Foster's Group Limited that have made a number of key acquisitions within the industry. Lion Nathan's bought craft beer industry mainstay Little World Beverages in 2012, making Lion the largest player in a highly competitive industry. SABMiller's acquisition of Foster's in 2011 has also shaken up the industry, as the world's second-largest brewer looked to cement its presence in Australia. “Despite falling per capita beer consumption and increased awareness of the health risks of excessive drinking, craft beer sales have remained resilient, largely due to the changing tides of consumer tastes,” says Sivasailam. In the five years through 2012-13, industry revenue is estimated to have increased by a compound annual 10.5% to $148.8 million. This includes a forecast 6.4% revenue increase over 2012-13.
The future prospects of the Craft Beer Production industry are promising. Consumer preferences are likely to continue to sway towards premium and craft beer, with an increasing emphasis on small, seasonal batches with a regional or local focus. Increased wine and cider consumption in lieu of beer will pose a small but growing threat to the industry. Craft producers are expected to offset this through an increase in innovative offerings and niche products such as an increase in Belgian, French and German styles, along with increased promotional and marketing activity that aims to inform consumers. “The threat of the supermarket duopoly and its effect on retailing is expected to continue into the future, especially as Coles and Woolworths look to enter the private-label and branded craft beer market,” says Sivasailam.
For more information, visit IBISWorld’s Craft Beer Production report in Australia industry page.
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IBISWorld Industry Report Key Topics
Businesses in this industry produce beer to a yearly maximum of 25 million litres. This industry also includes microbreweries and pubs that brew beer for consumption on the premises.
Key External Drivers
Industry Life Cycle
Products & Markets
Products & Services
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Basis of Competition
Barriers to Entry
Technology & Systems
Regulation & Policy
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