Australian Craft Beer Market Update June 2015

Beer_Industry_Report_Australia

The overall beer market in Australia continues to be challenged in volume by wine and cider, with craft beer the consistent savior, albeit off a small base and realistically large enough sustainable volumes enjoyed only by those brands with national distribution.

This is the first part of David’s (Australia Trade Tasting MC) update and outlines the general trend of craft beer in Australia for the half of 2015.  Future posts with detailed insight into the industry will be posted regularly leading up to the conference. Please check back regularly.

Australia has traditionally been a beer drinking nation, however current trends are seeing Wine equaling Beer consumption by 2018 and Cider being the overwhelming fastest growing liquor category. The growth categories in beer continue to be Craft Beer, both in off- and on-premise outlets, however the trends appears to be moving towards off-premise with consumption at home on the rise.

Craft Beer continues to see exceptional year on year double digit growth in liquor stores with 24.2% for local craft and 12.1% for imported craft value growth, from premiumisation with more consumers becoming more discerning with their choices and spend on beer. There is a real opportunity for craft brewers to work with liquor stores to drive sales particularly with events and social media. There is some PR currently for excise tax reform being driven by the Spirits Council for one volumetric tax system.

australia-mapAustralian Bureau of Statistics Beer Volume Year ended 30 June 2009-2014

  • Total Beer Volume -6.7%
  • Full-Strength Volume -7.6%
  • Mid-Strength Volume +16.7%
  • Per Capita 92.37 L p.a. -14.5%

Full strength beer remains the most popular type of beer, accounting for around 75% of all beer in 2013-14”. “Over the past decade we have seen the popularity of mid strength beer (19% of total beer consumed) grow at the expense of low strength beer (5% of total beer consumed). Between 2012-13 and 2013-14 the volume of mid strength beer increased 6.8% while full strength beer increased 0.4%. Low strength beer recorded a decrease (down 9.0%).

The volume of pure alcohol available for consumption in the form of beer increased by 1.0% and wine by 0.2% between 2012-13 and 2013-14. The volume of beer available for consumption increased 1.0% The volume of pure alcohol available for consumption in the form of Ready to Drink (pre-mixed beverages) decreased by 4.3% and spirits by 3.6% during this period. “Across all alcoholic beverages, there were 9.7 litres of pure alcohol available for consumption in 2013-14 for every person in Australia aged 15 years and over,” said Louise Gates from the ABS. “This is the lowest level since the early 1960’s.”

According to data on ‘Apparent Consumption of Pure Alcohol, Beverage type as a proportion of all alcohol from 1961 – 2014, Beer is down to 41%, all other liquor is up – Wine continues to converge to equal beer, now at 37.5% and expected to equal beer by 2018.

David_Lipman

Get inside insight into the craft beer industry and how to position your company to succeed in the competitive marketplace at the Australia Trade Tasting Conference on Sept 1 and Sept 2, 2015.  Learn more about the AuTT Conference here.