Industry Analysis & Industry Trends
During the past five years, consumers have shifted their preferences toward value products as disposable income growth slowed and pressured the industry's revenue. In addition, escalating world demand for major commodities like wheat and aluminum has caused the prices of these inputs to rise and dampen profit. Over the next five years, revenue is expected to rise only marginally as a continued strengthening of the loonie contributes to poor trade performance... purchase to read more
Industry Report - Industry Analysis Chapter
Premiumization, or substitution toward top-shelf products, has dragged down industry performance during the past five years. Despite a 0.7% annualized increase in disposable income since 2009, spending on industry products has declined over the period. To make matters worse, a strengthening loonie exacerbated import competition and diluted the export market by making Canadian beer a relatively more expensive product. Overall, IBISWorld estimates that industry revenue has contracted at a 2.6% annualized five-year rate to $4.8 billion in 2014. This includes a 3.4% decline in 2014 in response to heightened spending on marketing campaigns by major companies.
Like Americans, Canadians tightened their purse strings during and following the recession... purchase to read more