Crafting growth: Industry revenue is expected to rise further as the craft beer trend continues

Beer producers undertake the end-to-end process of brewing, packaging and distributing lager, ale and stout. Demand for the industry's products is typically driven by per-capita alcohol consumption, income, price and consumer preferences. High beer duty, growing competition from alternative products, supermarket discounting and changing social trends have weighed heavily on beer consumption recently. Drinkers are increasingly seeking more variety and higher quality in their drinks. Consumers continue to demand a variety of beers with innovative flavours and variations of traditional beers. Industry revenue is forecast to increase at a marginal compound annual rate of 0.2% over the five years through more.

Industry Statistics & Market Size
Annual Growth 14-19
Forecast Growth 19-24

Industry Threats & Opportunities

  • Despite recent growth in external competition, opportunities in the craft beer market remain
  • The craft market has provided opportunities, despite subdued sales in the wider beer market
  • Competition from other drinks producers is anticipated to be significant over the coming period
  • Industry Report - Starting a New Business Chapter

    The barriers to entering the Beer Production industry are moderate, given the high sunk costs and ongoing capital expenses required to operate. Economies of scale, which enable large-scale producers to limit operating costs, give incumbents a competitive advantage and present a barrier to success. Advertising, discounting and brand promotions can be used to divert sales from a new producer. Existing operators are incentivised to compete vigorously when a new competitor enters the market and are more financially stable to withstand low prices or high expenditure on product promotion. Furthermore, new producers are likely to have higher unit costs, limiting the extent to which they can discount their products to compete on the basis of price...purchase to read more.

    Additional Insights for the Beer Production Industry

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

  • Market research and understanding
  • Marketing of differentiated products
  • Economies of scale
  • IBISWorld analysts also discuss how external factors such as Alcohol consumption per capita and trade alcohol prices in the Beer Production industry impact industry performance..

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    What's in this report

    What is the Beer Production Industry?

    Brewers buy barley, malt, sugar, yeast and other ingredients to process into various beer products, including lager, ale and stout. Beer is packaged in bottles, cans or kegs for sale to wholesalers, retailers, pubs and bars. The production of cider is omitted from this industry.

    Industry Products
  • Lager
  • Ale
  • Stout and porter
  • Industry Activities
  • Brewing lager, ale and stout
  • Bottling, capping and labelling beer
  • Distributing beer tors,ers and publicans
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Alcohol consumption per capita
  • trade alcohol prices
  • Real household disposable income
  • Real effective exchange rate
  • Health consciousness

  • Current Performance
  • Craft beer revolution
  • Another round
  • Bottoms up
  • Chart: Revenue Growth

  • Industry Outlook
  • Competition and innovation
  • Regulation and rates
  • Reviving brew
  • Table: Beer Production Industry Revenue Outlook

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

  • Supply Chains
    Key Buying Industries
  • Alcoholic Beverage Wholesaling
  • Supermarkets
  • Off-Licences
  • Pubs & Bars

  • Key Selling Industries
  • Beverage Crop Growing
  • Hollow Glass Manufacturing
  • Malt Manufacturing

  • Products & Services
  • Lager
  • Ale
  • Stout and porter
  • Chart: Beer Production Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Off-trade
  • On-trade
  • Chart: Major Market Segmentation for the Beer Production Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
    ProfitExcise dutyPurchasesWagesDistribution and storageDepreciationOther costs
  • Chart: Cost Structure Benchmarking – Sector vs Beer Production

  • Basis of Competition
  • Internal competition
  • External competition

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

  • Industry Globalization
    Molson Coors Brewing Company (UK) Ltd, AB InBev UK Ltd, Heineken UK Ltd, Carlsberg UK Ltd,
  • Table: Molson Coors Brewing Company (UK) Ltd - financial performance
  • Table: AB InBev UK Ltd - financial performance
  • Table: Heineken UK Ltd - financial performance
  • Table: Carlsberg UK Ltd - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the 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 Beer Production Industry
  • 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)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
  • Equipment that rotates at high speed and separates substances of different densities by centrifugal force.
  • Hectolitre
  • A unit of measurement in brewing which equates one unit to 100 litres of beer.
  • High-Gravity Brewing
  • A brewing technique that begins with the production of a wort that has a higher sugar concentration, allowing for higher strength beer to be produced.
  • Pilsner
  • A type of pale lager first produced in the Czech Republic.
  • Pub Company (Pubco)
  • A large property company that owns the freehold on pubs, which are then leased or tenanted out to lessees and tenants.
  • Wet-Led Pub
  • One that derives most of its revenue from beer sales. Wet-led pubs are often tied to pubcos or brewers.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Beer Production 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 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 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 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 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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