Bottoms up: Higher prices of craft beer will boost industry revenue

The Breweries industry in Canada has experienced strong growth over the past five years, benefiting from the increased popularity of craft beer made from local microbreweries. While this resulted in revenue and enterprise growth from a range of new small-scale breweries, consumers have shifted away from the traditional light and premium beer brands that currently represent most of industry brewers' sales. Due to the rising popularity in small-scale breweries, there are concerns regarding the long-term growth prospects of the industry's international brewers. These large international brewers have been significantly pressured as they depend on high-volume sales of their respective flagship value more.

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

Industry Threats & Opportunities

  • Industry growth will slow down as consumers shift focus away from traditional beer brands
  • The world price of wheat has declined, benefiting both small and large brewers
  • Enterprise formation will continue to be strong despite weakening demand
  • Industry Report - Industry Key Buyers Chapter

    The three largest breweries in the Breweries industry in Canada are expected to generate 71.6% of industry revenue in 2018. Foreign investment over the past decade has led to a fundamental restructuring of the industry in the form of intense consolidation and rising market share for international beverage distribution giants. Major international brewers have acquired significant market share through economies of scale in production, which enable these companies to produce large quantities of beer at a low per-unit cost, heavily market these products through a variety of advertising channels and generate operating margins that are significantly higher than the margins of the industry's independent, regional brewers. Con...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

  • Economies of scope
  • Establishment of brand names
  • Economies of scale
  • IBISWorld analysts also discuss how external factors such as Per capita alcohol consumption and Per capita disposable income in the Breweries industry impact industry performance..

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    What's in this report

    What is the Breweries Industry?

    The Breweries industry in Canada produces alcoholic beverages, such as beer and malt liquor as well as nonalcoholic beer, using water, barley, hops, yeast and other occasional adjuncts. Manufacturers of wine, spirits and other alcoholic beverages are not included in this industry.

    Industry Products
  • Draught beer
  • Bottled beer
  • Canned beer
  • Industry Activities
  • Canned beer production
  • Bottled beer production
  • Draught 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 alcohol consumption
  • Per capita disposable income
  • World price of wheat
  • Canadian effective exchange rate index
  • World price of aluminum

  • Current Performance
  • An evolving industry
  • Uncertain input prices
  • Declining international sales
  • Chart: Revenue Growth

  • Industry Outlook
  • Slow and steady
  • Craft brewing and foreign competition
  • 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, Wine & Spirits Wholesaling in Canada
  • Consumers in Canada

  • Key Selling Industries
  • Cardboard Box & Container Manufacturing in Canada
  • Corn, Wheat & Soybean Wholesaling in Canada
  • Flour Milling in Canada
  • Glass Product Manufacturing in Canada
  • Printing in Canada
  • Sawmills & Wood Production in Canada

  • Products & Services
  • Canned beer
  • Bottled beer
  • Draught beer
  • Chart: Breweries Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Consumers aged 18 to 34
  • Consumers aged 35 to 49
  • Consumers aged 50 to 64
  • Consumers aged 65 and older
  • Consumers aged 12 to 17
  • 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
  • Profit
  • Purchases
  • Wages
  • Other
  • Chart: Cost Structure Benchmarking – Sector vs Breweries

  • Basis of Competition
  • Internal competition
  • External competition

  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Breweries Industry

  • Industry Globalization
    Anheuser-Busch InBev SA/NV, Molson Coors Brewing Company,
  • Table: Anheuser-Busch InBev SA/NV - 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 alcohol consumption (2009-2023)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
  • Nonessential beer ingredients such as rice or corn that are often included in the mash to alter flavor or reduce ingredient purchase costs.
  • Craft Beer
  • Beer broadly defined as having annual production of less than two million barrels made by an independent brewer.
  • Hydrometer
  • An instrument used to determine specific gravity of liquid. For brewers, hydrometers are used before and after fermentation to determine if yeast has properly converted fermentable sugars to alcohol.
  • Lautering
  • The process of soaking malted grains in hot water and then draining the water to create a liquid that contains fermentable sugars.
  • Nanobrewery
  • A very small commercial microbrewery that is often operated by a single owner and produces very small batches for local distribution.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Breweries market research report is a comprehensive guide to market size and growth prospects. Our industry reports offer strategic industry analysis of the factors influencing companies, including new product developments, economic, lifestyle and demographic influences, distribution and supply chain factors and pricing issues. Full analysis accompanies our data forecasts to illustrate how the market responds to emerging industry trends.

    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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