Industry Analysis & Industry Trends
During the five years to 2015, the Breweries industry has benefited from consumers opting for a growing variety of craft-style beers made from local microbreweries. Additionally, the industry's international reputation has expanded over the past five years in response to the growing reputation of small-scale US brewers abroad. However, It is unlikely that microbrewery growth will continue over the next five years. As the market for specialty beers becomes saturated with microbreweries throughout the country, industry revenue is projected to plateau over the five years to 2020. Merger and acquisition activity may intensify among microbreweries and major international breweries alike, resulting in much slower employment and establishment growth over the next five years as well... purchase to read more
Industry Report - Starting a New Business Chapter
Different barriers exist depending on whether a new operator wishes to enter the Breweries industry as a small, local brewer or as a large, regional producer. Entry for craft brewers, for example, can be facilitated by the option to purchase turnkey facilities, but starting a large-scale production will require significant cash investments and substantial purchases of capital and equipment.
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 distribution opportunities available to new players... purchase to read more