Sobering up: Declining per capita alcohol consumption has negatively affected revenue

The Beer Manufacturing industry has undergone a moderate revenue decline over the past five years. Consumer preferences have changed, and competition has increased from both internal and external sources, while per capita alcohol consumption has declined. Cider and spirits are making up an increasing share of alcohol consumption, as beer consumption falls. However, premiumisation trends in beer consumption have somewhat mitigated the negative effects of declining per capita alcohol consumption. Consumers are increasingly shifting away from traditional beers, such as Victoria Bitter, to higher priced premium and craft beers. As a result, industry revenue is expected to decline at an annualised 1.1% over the five years through 2018-19, to $4.4 billion. This includes a fall of 0.1%...read more.

Industry Statistics & Market Size
Revenue
$4bn
Annual Growth 14-19
-1.1%
Forecast Growth 19-24
Profit
Employment
6,017
Businesses
517

Industry Threats & Opportunities

  • Per capita beer consumption has fallen, with consumers moving towards other beverages such as cider
  • The craft beer segment has strongly grown over the past five years, encouraging new entrants
  • Supermarkets are forecast to continue pushing into the private-label beer market
  • Industry Report - Industry Investment Chapter

    The Beer Manufacturing industry exhibits moderate capital intensity. Most industry operations, such as brewing and packaging, are automated using capital-intensive machinery. The industry is expected to invest $0.28 in capital equipment for every dollar spent on wages in 2018-19. Capital intensity has increased over the past five years due to the industry's larger brewers increasing automation in the production process.For large brewers, little manual labour is involved in the production process. However, labour is necessary for product research, plant maintenance, sales, marketing and management. As those types of roles are generally highly paid, the industry has a high average wage. Cra...purchase to read more.

    Additional Insights for the Beer Manufacturing Industry

    IBISWorld has determined the most important Key Success Factors for the Beer Manufacturing 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 producers generally package beer in kegs, bottles or cans, and sell it to bars, wholesalers and retailers. The industry does not include production of non-alcoholic beer.

    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
    ABI Australia Holding Pty Ltd, Lion Pty Ltd,
  • Table: ABI Australia Holding Pty Ltd - financial performance
  • Table: Lion Pty Ltd - 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
    Includes:
  • Industry Revenue (2010-2024)
  • Industry Gross Product (2010-2024)
  • Establishments (2010-2024)
  • Businesses (2010-2024)
  • Employment (2010-2024)
  • Exports (2010-2024)
  • Imports (2010-2024)
  • Wages (2010-2024)
  • Wages (2010-2024)
  • Purchases (2010-2024)
  • Profit (2010-2024)
  • Depreciation (2010-2024)
  • Rent (2010-2024)
  • Utilities (2010-2024)
  • Other (2010-2024)

  • 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 provides the latest industry statistics and industry trends, allowing you to identify the products and customers driving revenue growth and profitability. The industry report identifies the leading companies and offers strategic industry analysis of the key factors influencing the market.

    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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