Tapped out: Concerns surround the long-term growth of the industry's international brewers

Over the five years to 2018, the Breweries industry has benefited from consumers' increasing interest in craft-style beers made from local microbreweries. Unlike traditional breweries that have bottling operations in facilities throughout the United States (and in some cases, throughout the world), small-scale breweries have become a big hit with consumers due to their local flair, variety of style offerings and quality ingredients. As a result, industry revenue is expected to increase over the five-year period. The Breweries industry is expected to grow at a steadier pace and experience less volatility over the five years to 2023...purchase to read more.

Industry Statistics & Market Size
Annual Growth 13-18
Forecast Growth 18-23

Industry Threats & Opportunities

  • The industry experienced a moderate level of revenue volatility over the past five years
  • Mergers have helped many large brewers cut distribution costs over the past five years
  • IBISWorld expects that the development of brand names will be critical to players’ success
  • 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 fairly quickly by leasing pre-existing turnkey facilities and production space, but starting 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 pre-existing agreements with distributors, which are also heavily regulated and limited on a regional basis, severely reducing the distribution opportunities available to new players. Mor...purchase to read more.

    Additional Insights for the Breweries Industry

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

  • Establishment of brand names
  • Control of distribution arrangements
  • Marketing of differentiated products
  • IBISWorld analysts also discuss how external factors such as Per capita expenditure on alcohol and Excise tax on beer in the Breweries industry impact industry performance..

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    What's in this report

    What is the Breweries Industry?

    The Breweries industry primarily produces alcoholic beverages made from malted barley and hops such as beer, malt liquor and nonalcoholic beer. This industry excludes wine, brandy, cider and distilled beverages such as vodka and rum. Bottling purchased malt beverages and manufacturing purchased malt are also excluded from this industry.

    Industry Products
  • Premium beer
  • Sub-premium beer
  • Super-premium beer
  • Craft beer
  • Malt
  • Industry Activities
  • Canned beer production
  • Bottled beer production
  • Draft beer production
  • Nonalcoholic beer production
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Per capita expenditure on alcohol
  • Excise tax on beer
  • Consumer spending
  • Demand from wineries
  • Trade-weighted index

  • Current Performance
  • Changing landscape
  • Trade
  • Craft brewing
  • Chart: Revenue Growth

  • Industry Outlook
  • Industry landscape
  • Profitability
  • Globalization
  • Table: Breweries Industry Revenue Outlook

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

  • Supply Chains
    Key Buying Industries
  • Beer Wholesaling
  • Consumers

  • Key Selling Industries
  • Cardboard Box & Container Manufacturing
  • Corn, Wheat & Soybean Wholesaling
  • Glass Product Manufacturing
  • Printing
  • Sugar Processing
  • Wheat, Barley & Sorghum Farming
  • Wood Pallets & Skids Production

  • Products & Services
  • Premium beer
  • Sub-premium beer
  • Craft beer
  • Super-premium beer
  • Malt
  • Chart: Breweries Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Convenience stores
  • Supermarkets and grocery stores
  • Liquor stores
  • Other
  • Exports
  • Other foodservice establishments
  • Bars and nightclubs
  • Chart: Major Market Segmentation for the Breweries Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
    ProfitPurchasesWagesDepreciation, rent and utilitiesOther costs
  • Chart: Cost Structure Benchmarking – Sector vs Breweries

  • Basis of Competition
    Internal competitionExternal competition
    Barriers to Entry
  • Table: Barrier to Entry Checklist for the Breweries Industry

  • Industry Globalization
    Anheuser-Busch InBev SA, Molson Coors Brewing Company,
  • Table: Anheuser-Busch InBev SA - financial performance
  • Table: Molson Coors Brewing Company - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Breweries 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 Breweries Industry
  • 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)
  • Per capita expenditure on alcohol (2009-2023)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Table: Industry Financial Ratios
  • Optional ingredients used during brewing process as either a supplement to the primary grain bill or as a replacement for more costly ingredients.
  • Barrel
  • A container for beer that is equivalent to 2 kegs, 31 gallons, 1.17 hectoliters or 330 12-ounce servings of beer.
  • Brewpub
  • A restaurant-brewery that sells more than 25.0% of its beer on-site.
  • Craft Brewer
  • A brewery that has annual production of less than six million barrels and has fewer than 25.0% of its ownership in the hands of a non-craft brewer. It typically targets local and regional markets.
  • Fining Agents
  • Optional beer clarifying agents added during the brewing process to coagulate proteins that would otherwise result in a cloudy or hazy beer presentation.
  • Malt Beverage
  • The general name for products made with malted barley or hops. It must derive the majority of its alcohol content from the fermentation of brewing ingredients.
  • Malt Liquor
  • Defined as a malt beverage with an alcohol content of higher than 6.0% in most states; this term has legal and tax implications for brewers and distributors.
  • Microbreweries
  • Breweries that each produce fewer than 15,000 barrels of beer per year with 75.0% or more of its beer sold off-site.
  • Regional Breweries
  • Breweries with annual beer production between 15,000 and 6 million barrels each. Also referred to as small breweries.
  • Sparging
  • The process by which grain-soaked water is filtered and drained before being boiled and ultimately fermented.
  • What Our Customers Say

    Why buy this report?

    The Breweries Industry Research Report measures market size, analyses current and future trends, and provides an indication of market share for the industry’s largest companies. IBISWorld’s collection of industry market research reports gives you insightful, up-to-date information on the supply chains, economic drivers, and key buyers and markets for hundreds of industries.

    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 Breweries:
    • 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 Breweries 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 Breweries, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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