Hopping along: Increasing demand for premium beer has supported strong revenue growth

The Craft Beer Production industry has flourished over the past five years. Changing consumer tastes, particularly the move towards premium beers, and a growing emphasis on quality across liquor retailing have benefited the industry. Over the past five-year period, the industry has spread across the country, with craft beer producers now operating in every state and territory. Despite the presence of major brewers such as Lion, SAB Beverage and Asahi, the industry is highly fragmented. These companies have made several key acquisitions in the industry over the past five years. Most notably, Lion acquired Little World Beverages in September 2012 making it the largest industry player. Asahi purchased the Cricketers Arms beer brand in 2013 and Mountain Goat in 2015...read more.

Industry Statistics & Market Size
Revenue
$486m
Annual Growth 13-18
9.7%
Forecast Growth 18-23
Profit
Employment
2,254
Businesses
368

Industry Threats & Opportunities

  • Craft beer sales have increased despite falling per capita beer consumption
  • The experimental attitude of craft beer consumers means they often don’t have strict brand loyalty
  • Enterprise numbers are forecast to increase, as new entrants capitalise on strong demand
  • Industry Report - Industry Analysis Chapter

    The Craft Beer Production industry has grown rapidly over the past five years, despite failing per capita beer consumption. Over the period, consumer tastes have shifted towards premium beers, which has caused a surge in the number and variety of craft beers produced in Australia. As the range of available craft beers has grown, producers have had to create new and innovative products to differentiate themselves from rival brewers. Overall, industry revenue is expected to increase by an annualised 9.7% over the five years through 2017-18, to reach $486.3 million. This includes expected growth of 6.2% in the current year. Despite strong revenue growth, industry-wide profitability has declined slightly over the past five years due to intensifying competition...purchase to read more.

    Additional Insights for the Craft Beer Production Industry

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

  • Establishment of brand names
  • Control of distribution arrangements
  • Having a good reputation
  • IBISWorld analysts also discuss how external factors such as Demand from liquor retailing and Demand from pubs, bars and nightclubs in the Craft Beer Production industry impact industry performance..

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    What's in this report

    What is the Craft Beer Production Industry?

    Industry operators produce craft beer. Industry players include independent brewers and large multinational companies that brew craft beer. Contract or gypsy brewers are not included in the industry.

    Industry Products
  • Ales
  • Lagers
  • Stouts and porters
  • Other beers
  • Industry Activities
  • Brewing and bottling of craft 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

  • Current Performance
  • Industry participation
  • Beer consumption trends
  • Export markets
  • ACCC investigation
  • Chart: Revenue Growth

  • Industry Outlook
  • Shifting tastes
  • Premiumisation
  • International trade
  • Table: Craft Beer Production Industry Revenue Outlook

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

  • Supply Chains
    Key Buying Industries
  • Liquor Wholesaling
  • Liquor Retailing
  • Pubs, Bars and Nightclubs
  • Restaurants

  • Key Selling Industries
  • Glass and Glass Product Manufacturing
  • Grain Growing
  • Paperboard Container Manufacturing

  • Products & Services
  • Ales
  • Lagers
  • Other beers
  • Stouts and porters
  • Chart: Craft Beer Production Industry Products and Services Segmentation

  • Demand Determinants
  • Quality
  • Price
  • Substitutes
  • Marketing and promotion

  • Major Markets
  • Liquor retailers
  • Hospitality venues
  • Distributors
  • Export markets
  • Chart: Major Market Segmentation for the Craft Beer Production Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Profit
  • Purchases
  • Wages
  • Other
  • Chart: Cost Structure Benchmarking – Sector vs Craft Beer Production

  • Basis of Competition
  • Internal competition
  • External competition

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

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

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Craft Beer Production 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 Craft Beer Production Industry
    Includes:
  • 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
    Distributors
  • Agents of craft breweries that not only act as wholesalers but also as representatives that promote craft beers.
  • Microbrewery
  • A small independent brewer, often with just one establishment.
  • Pale Ale
  • Beer brewed from malted barley using the warm-fermentation method. It is the most popular craft beer variety in Australia.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Craft Beer Production 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 Craft Beer Production:
    • 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 Craft Beer Production 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 Craft Beer Production, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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