Craft Beer Industry Essay

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Recommended: The United States Beer Industry

The Craft Beer Industries has been developed rapidly over these past five years. A shifting in demand towards premium beer by emphasizing in quality, flavour, and also styles has significantly contribute to the revenue growth as seen in the graph below:
Figure 1 Craft Beer Revenue Growth (IBIS WORLD, 2015)

Based on IBIS, the demand industries for craft beer are liquor retailing, liquor wholesaling, pubs, bars, nightclubs, and also restaurant. Furthermore as consumer preferences are shifting to premium beer, such as craft beer the demand has increased as well especially through an increase in demand from liquor retailing and demand from pubs, bars and nightclubs.

Figure 2 Demands for Craft Beer

The demand from liquor retailing is the most essential driver for the industry as it contributes the largest proportion of industry revenue. This includes demand from giants store like Dan Murphy’s, Liquorland, and also niche retailers from inner and regional areas. Next, the demand from pubs, bars, and nightclubs is the second-largest source of industry revenue (IBISWORLD, 2015). The demand from pubs, bars, and nightclubs is expecting to grow in 2016 despite of the fluctuations in consumer confidence that affect pubs and bars more than the liquor …show more content…

Ever since, market shows a strong interest in craft beer the local craft breweries has increase from 25 before to now about 160 (ABC, 2013). The significant increases in suppliers are mostly because the industry has low barriers to entry and medium competition level. The craft beer industry show a low level of barriers to entry because the production can be started through an inexpensive brewing equipment and product can be launched with personal capital contributions. Furthermore, as the popularity has been increasing local breweries is not the only player anymore since major players has started entering the market by acquiring popular craft beer

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