Hop to it: The increasing popularity of craft beer has offset declining beer consumption

IBISWorld’s Beer Manufacturing market research report is a comprehensive guide to market size and growth prospects. Our industry reports offer strategic industry analysis of the factors influencing companies, including new product developments, economic, lifestyle and demographic influences, distribution and supply chain factors and pricing issues. Full analysis accompanies our data forecasts to illustrate how the market responds to emerging industry trends.


Industry Analysis & Industry Trends

The Beer Manufacturing industry has experienced a shake-up over the past five years. Drinkers have given up traditional brands, such as Victoria Bitter, in favour of premium and craft beers and other beverages such as cider and wine. As a result, per capita beer consumption has declined sharply over the period. 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 caused the number of craft breweries to increase over the past decade, to an expected 293 in 2016-17...

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Industry Report - Industry Investment Chapter

The Beer Manufacturing industry has a high level of capital intensity. For every dollar paid as wages, $0.51 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 10.9% of industry revenue, are generally less capital intensive. Muc..

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Industry Products

What is the Beer Manufacturing Industry?

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

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

About this Industry

Industry Definition
Main Activities
Similar Industries
Additional Resources

Industry at a Glance

Industry Performance

Executive Summary
Key External Drivers
Current Performance
Industry Outlook
Industry Life Cycle

Products & Markets

Supply Chain
Products & Services
Demand Determinants
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

Jargon & Glossary

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