Industry Analysis & Industry Trends
The Beer Manufacturing industry 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 and craft beers and other beverages like cider and wine. An ongoing shift in consumer preferences from quantity to quality has affected the industry and its product range. As beer drinkers purchase more premium, craft and internationally branded beers, the increase in per-unit prices has offset the decline in consumption. Robust demand for craft beer has resulted in the number of craft breweries increasing over the past decade to 250 in 2015-16... purchase to read more
Industry Report - Industry Investment Chapter
The Beer Manufacturing industry has a high level of capital intensity. For every dollar paid as wages, $0.50 is required as capital investment. Wages represent labour costs, and depreciation is used as a proxy for capital. Most of the industry's processes (i.e. brewing and packaging) are automated. Therefore, there is little human involvement in the production process. However, labour is required for product research, plant maintenance, sales, marketing and management. Given the highly paid nature of those types of roles, the industry has a high average wage.
Craft breweries, which make up the majority of establishments in the industry but only 8.9% of industry revenue, are generally less capital intensive... purchase to read more