Uncategorised

Brewing industry profitability decreases: IBISWorld

IBISWorld has released the latest version of its beer manufacturing industry research figures.

The Beer Manufacturing industry in Australia market research report finds that overall growth is stagnant, traditional brands out of favour, and craft/premium beers dominating growth.

The sector employs 3,768 workers at 209 businesses.

The industry is worth $5 billion overall, according to IBISWorld’s research, and grew at only 0.1 per cent in 2010-15. It is dominated by two foreign owned players, the South African SABMiller (which acquired Foster’s in 2011), and Lion Nathan (owned by Kirin Holdings of Japan.

The two major brewers are hurting profitability through their battle for market share, as is the overall decline in per capita beer consumption.

“Industry revenue growth over the past five years has been constrained by falling beer consumption and intensifying competition,” said an analyst from IBISWorld, Jem Anning.

Overall growth is put at 2.5 per cent for 2014-15. This was being driven by premium and craft beers, which are expected to drive revenue growth over the next five years.

According to an article in The Australian this month, almost half of all craft beer in Australia is sold by the big two.

Image: https://www.franchiseopportunitiesjournal.com

 

Send this to a friend