Industry Analysis & Industry Trends
The Breweries industry has benefited from consumers opting for affordable beer over other alcoholic beverages during and following the recession. As disposable income levels continue to strengthen over the next five years, the craft and premium beer segments are expected to bolster revenue growth; however, contraction in total industry sales volumes will slightly offset this growth. Since the market for specialty brews is saturated, a slowdown of new businesses entering the industry is expected to benefit the industry's bottom line... purchase to read more
Industry Report - Starting a New Business Chapter
The barriers to entry into the domestic brewing industry depend on whether a new operator is attempting to enter the small craft-brewing market or large-scale production. Entry into the craft-brewing market is facilitated by the option to purchase turnkey facilities and faces lesser taxes, but starting a large-scale production requires significant cash flow and continuous investment.
Barriers to entry include sunk costs and other high ongoing capital requirements, such as capital costs of manufacturing facilities and branding. Major companies have preexisting agreements with distributors, which are also heavily regulated and limited on a regional basis, severely limiting the exposure available to new players... purchase to read more