The Australian beer market will become more fragmented, as drinkers continue to opt for quality over quantity.
Melbourne, Australia (PRWEB) January 29, 2015
Operators in the Beer Manufacturing industry in Australia have 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 like cider and wine. Robust demand for craft beer has resulted in the number of industry craft breweries increasing over the past decade to about 150 in 2014-15. At the other end of the market, foreign interests have acquired Australia's two largest brewers, Lion and Carlton & United Breweries (CUB). According to IBISWorld industry analyst Jem Anning, “the battle for market share between the two has constrained growth in industry revenue and profitability.”
Over the five years through 2014-15, industry revenue is expected to increase at an annualised rate of 0.1% to total $4.8 billion. “Industry revenue growth over the past five years has been constrained by falling beer consumption and intensifying competition,” says Anning. This revenue growth includes a rise of 2.5% in the current year, driven by higher demand for premium lagers and craft beer. The industry displays a high level of market share concentration. Major players include Lion Pty Ltd and SABMiller Beverage Investments Pty Limited.
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 Beer Manufacturing industry, especially as CUB and Lion begin 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 put pressure on profitability. Traditional brands are forecast to lose market share to premium beers. Sales of craft beer are expected to flourish, but the segment is likely to consolidate, as the two big brewers make acquisitions and small brewers exit the industry.
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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