Finely crafted: Premiumisation trends have offset declining beer consumption

The Beer Manufacturing industry has exhibited modest growth over the past five years, constrained by a range of factors. Consumer preferences have changed and competition has increased from both internal and external sources, while per capita alcohol consumption has declined over the past five years. However, premiumisation trends in beer consumption have offset the negative effects of declining per capita alcohol consumption. Consumers are increasingly shifting from traditional beers, such as Victoria Bitter, to higher priced premium and craft beers. As a result, industry revenue is expected to increase at an annualised 2.1% over the five years through 2017-18, to reach $4.9 billion. This includes growth of more.

Industry Statistics & Market Size
Annual Growth 13-18
Forecast Growth 18-23

Industry Threats & Opportunities

  • Per capita beer consumption has fallen, while consumers have moved towards craft beers
  • The craft beer segment has strongly grown over the past five years, encouraging new entrants
  • The Australian beer market is saturated, and will likely become more fragmented over the period
  • Industry Report - Industry Locations Chapter

    The geographic spread of the Beer Manufacturing industry correlates closely with the distribution of the Australian population. Industry operators traditionally establish themselves in metropolitan areas to reduce transport costs between storage and production facilities, and downstream markets. As a result, breweries are most concentrated in Victoria and New South Wales, accounting for over 50% of industry operators. However, growth in the craft beer segment is contributing to the industry geographically dispersing, with craft breweries often operating in regional or rural areas.Victoria is home to Carlton & United Breweries (CUB) and prominent craft breweries including Mountain Goat, Holgate and the Mornington Peninsula Brewery. The...purchase to read more.

    Additional Insights for the Beer Manufacturing Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Beer Manufacturing Industry are

  • Market research and understanding
  • Establishment of brand names
  • Control of distribution arrangements
  • IBISWorld analysts also discuss how external factors such as Demand from liquor retailing and Demand from pubs, bars and nightclubs in the Beer Manufacturing industry impact industry performance..

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    What's in this report

    What is the Beer Manufacturing Industry?

    Industry firms brew, package and distribute beer. Industry-produced beer is generally packaged in kegs, bottles or cans, and is sold to bars, wholesalers and retailers. The production of non-alcoholic beer is excluded from the industry.

    Industry Products
  • Full-strength traditional beer
  • Mid-strength beer
  • Light beer
  • Premium beer
  • Low-carbohydrate beer
  • Craft beer
  • Industry Activities
  • Beer, excluding non-alcoholic beer
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Demand from liquor retailing
  • Demand from pubs, bars and nightclubs
  • Per capita alcohol consumption
  • Real household discretionary income
  • Domestic price of coarse grains

  • Current Performance
  • Beer consumption
  • Craft beers
  • Industry structure
  • Foreign-label brands
  • Competition and profitability
  • Chart: Revenue Growth

  • Industry Outlook
  • Supermarkets
  • Premium and

    craft beer

  • Competition
  • Table: Beer Manufacturing Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Beer Manufacturing Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Butter and Dairy Product Manufacturing
  • Liquor Wholesaling
  • Liquor Retailing
  • Pubs, Bars and Nightclubs
  • Hotels and Resorts

  • Key Selling Industries
  • Flour and Grain Mill Product Manufacturing
  • Glass and Glass Product Manufacturing
  • Metal Drum, Can and Bin Manufacturing
  • Paperboard Container Manufacturing

  • Products & Services
  • Full-strength traditional beer
  • Premium beer
  • Mid-strength beer
  • Craft beer
  • Low-carbohydrate beer
  • Light beer
  • Chart: Beer Manufacturing Industry Products and Services Segmentation

  • Demand Determinants
  • Discretionary income
  • Price
  • Health consciousness and consumer trends

  • Major Markets
  • Wholesalers
  • Retailers
  • Other markets
  • Chart: Major Market Segmentation for the Beer Manufacturing Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Chart: Cost Structure Benchmarking – Sector vs Beer Manufacturing

  • Basis of Competition
  • Internal competition
  • External competition

  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Beer Manufacturing Industry

  • Industry Globalization
    SAB Beverage Investments Pty Ltd, Lion Pty Ltd, Coopers Brewery Limited,
  • Table: SAB Beverage Investments Pty Ltd - financial performance
  • Table: Lion Pty Ltd - financial performance
  • Table: Coopers Brewery Limited - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Beer Manufacturing Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Beer Manufacturing Industry
  • Industry Revenue (2009-2023)
  • Industry Gross Product (2009-2023)
  • Establishments (2009-2023)
  • Businesses (2009-2023)
  • Employment (2009-2023)
  • Exports (2009-2023)
  • Imports (2009-2023)
  • Wages (2009-2023)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Alcohol By Volume (Abv)
  • A standard measure of how much alcohol is contained in a given volume of an alcoholic beverage.
  • Hops
  • A plant extract from the flower of the hop vine used to impart flavour and bitterness to beer. It is also a natural preservative.
  • Keg
  • A container commonly used to store, transport and serve beer. Keg sizes vary and therefore cannot be used as a standard unit of measurement.
  • Premiumisation
  • The shift in consumer preference towards more expensive premium and craft beers.
  • Private-Label Beer
  • Beer produced on contract for an entity that does not itself manufacture beer. This beer is labelled under a brand owned by the entity.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Beer Manufacturing market research report can be used to help you: understand market size and growth potential; major companies; draft business plans and pitch books; and conduct benchmarking and SWOT analysis. Our industry analysis highlights macro industry trends in the overall sector and micro trends faced by companies that do business in the industry. The industry report also provides key industry statistics and 5-year forecasts to anticipate future industry prospects so you can decide with confidence.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Beer Manufacturing:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Beer Manufacturing market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Beer Manufacturing, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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