Beer Manufacturing in Australia Industry Market Research Report Now Updated by IBISWorld

Per capita beer consumption has declined sharply as drinkers have given up traditional brands, such as Victoria Bitter, in favour of premium beers and other beverages. For this reason, industry research firm IBISWorld has updated its report on the Beer Manufacturing industry in Australia.

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IBISWorld Market Research

IBISWorld Market Research

The growing popularity of higher margin premium and craft beers is likely to boost the industry.

Melbourne, Australia (PRWEB) August 19, 2014

Beer Manufacturing in Australia has undergone a shake-up over the past five years. Per capita beer consumption has declined sharply as drinkers have given up traditional brands, such as Victoria Bitter, in favour of premium beers and other beverages such as cider and wine. Robust demand for craft beer has resulted in the number of craft breweries increasing to around 150 in 2014-15. At the other end of the market, foreign interests have acquired Australia's two largest brewers, Carlton & United Breweries (CUB) and Lion. According to IBISWorld industry analyst Jem Anning, “the battle for market share between the two has constrained growth in industry revenue and profitability.” Industry revenue is expected to grow by 0.8% over 2014-15, due to weak consumer sentiment, falling beer consumption due to changing consumer trends and intensifying competition. In the five years through 2014-15, industry revenue is expected to increase at an annualised rate of 0.2%, to total $4.8 billion.

Industry revenue growth is expected to pick up over the next five years. The growing popularity of higher margin premium and craft beers is likely to boost the industry, especially as CUB and Lion bring in domestic production of premium foreign beers. The Australian beer market will become more fragmented as drinkers continue to opt for quality over quantity. However, intense competition between the two major brewers is expected to continue to put pressure on profitability. “Traditional brands are forecast to lose market share to premium beers,” says Anning. Sales of craft beer are expected to flourish, but enterprises in the segment are likely to consolidate as the two big brewers make acquisitions and small brewers exit the industry.

The Beer Manufacturing industry is highly concentrated. There are two major brewers, Carlton & United Breweries and Lion. However, concentration has fallen during the past five years, with drinkers switching from traditional brands such as VB and XXXX to premium imports and craft beers. The third-largest player in the industry, Coopers, has enjoyed robust growth over the five-year period, increasing its market share to 4.0% in 2014-15. Additionally, the re-entry of Coca-Cola Amatil into the Beer Manufacturing industry is a sign of increasing competition from other players beyond the big two breweries. IBISWorld expects this trend to continue in line with the diversification of consumer tastes and increasing premiumisation trends.

For more information, visit IBISWorld’s Beer Manufacturing industry in Australia report page.

Firms in the Beer Manufacturing industry manufacture, keg, bottled and canned beer in a range of varieties such as ale, stout and porter. Beers are packaged for sale to pubs, bars, hotels and wholesale and retail alcoholic beverage distributors.

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IBISWorld industry Report Key Topics

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.


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