IBISWorld Market Research
Craft beers have benefited from changing consumer tastes and a shift away from traditional mass-market beers.
Melbourne, Australia (PRWEB) April 01, 2014
The Craft Beer Production industry has flourished over the past decade. The industry has benefited from changing consumer tastes, particularly the move towards premium beer and the emphasis on quality over quantity across the liquor retailing landscape. The industry has expanded dramatically to include nearly 150 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 and Foster's that have made a number of key acquisitions within the industry. Most notably, Lion's recent acquisition of industry mainstay Little World Beverages has led to the company becoming the largest player in a highly competitive industry. SABMiller's acquisition of Foster's in 2011 further shook up the industry, as the world's second-largest brewer looked to cement its presence in Australia. IBISWorld industry analyst Naren Sivasailam states, “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 taste.” In the five years through 2013-14, industry revenue is estimated to increase by a compound annual rate of 10.1% to $160.6 million. This includes an increase of 7.1% forecast for 2013-14.
The industry's future prospects are promising. Consumer preferences will continue to sway towards premium and craft beer, with an increasing emphasis on small, seasonal batches with a regional or local focus. According to Sivasailam, “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 about their unique flavours. 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.
The Craft Beer Production industry has a medium level of market share concentration. The industry's major players, Lion and Foster's, are also the largest players in the broader Beer Manufacturing industry and have substantial resources that are unmatched by smaller brewers. Despite this, the highly fragmented nature of the industry has allowed a number of smaller breweries to grow and flourish as consumer tastes have shifted away from traditional beer such as VB, XXXX and Tooheys. For more information, visit IBISWorld’s Craft Beer Production report in Australia industry page.
Follow IBISWorld on Twitter: http://twitter.com/#!/ibisworldau.
IBISWorld industry Report Key Topics
Businesses in this industry produce craft beer. This industry also includes microbreweries and pubs that brew beer for consumption on the premises.
Industry Performance
Executive Summary
Key External Drivers
Current Performance
Industry Outlook
Industry Life Cycle
Products & Markets
Supply Chain
Products & Services
Major Markets
International Trade
Business Locations
Competitive Landscape
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Basis of Competition
Barriers to Entry
Industry Globalisation
Major Companies
Operating Conditions
Capital Intensity
Technology & Systems
Revenue Volatility
Regulation & Policy
Industry Assistance
Key Statistics
Industry Data
Annual Change
Key Ratios
About IBISWorld Inc.
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 every Australian industry. 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 Melbourne, IBISWorld serves a range of business, professional service and government organisations through more than 10 locations worldwide. For more information, visit http://www.ibisworld.com.au or call (03) 9655 3886.