Beer market in Australia - statistics & facts
Trouble has been brewing for Australia’s once-thriving independent beer scene. Over the past two years, several prominent independent breweries closed their doors or entered voluntary administration. But why are these beer taps being turned off?
Higher excise rates, inflationary impacts on pubs, bars, and other venues prompting climbing beer pint prices, reduced consumer demand, and rising production costs are some key issues hanging over local brewers. Australia’s beer market concentration, with two industry giants dominating the country’s beer taps and retail spaces, also poses a challenge to independent brewing businesses regarding liquor store shelf space and tap contracts.
Its main rival, Kirin Holdings, which operates Australasian company Lion, produces highly consumed beers such as Tooheys and XXXX. These two conglomerates also distribute various imported products across the country, including Heineken, Guinness, Corona, and Peroni.
Coopers, the largest Australian-owned brewery, and independent breweries also make their mark but have to contend with mainstream beers and imported brews. Australia’s beer is sold via two main channels: on-premises through taps in venues and off-premises in packaged form through retailers. The retail segment leaders are Coles Group’s Liquorland and First Choice Liquor alongside BWS and Dan Murphy’s, owned by Endeavour Group.
Despite consumers having developed a taste for locally owned and brewed beers, Australia’s independent brewery network has been struggling due to economic conditions and big brewing companies’ dominance. Multinational beverage companies have their foot in the craft scene’s door, selling their own varieties in the Australian market or having acquired independent breweries as part of their market portfolio. Alongside this, more competition has been generated for independent brewers by a rise in liquor store-own craft brews.
Low and zero-carb options have also hit the Australian beer scene. Fast-growing zero-carb brand Better Beer continued to find success in 2024, and Lion introduced an ultra-low zero-carb version of its XXXX beer. With consumers welcoming new and exciting products within the Australian market, the non-alcoholic and low-carb segments are becoming serious contenders that could disrupt the commercial beer market and eat into the market share of established mainstream brands.
Higher excise rates, inflationary impacts on pubs, bars, and other venues prompting climbing beer pint prices, reduced consumer demand, and rising production costs are some key issues hanging over local brewers. Australia’s beer market concentration, with two industry giants dominating the country’s beer taps and retail spaces, also poses a challenge to independent brewing businesses regarding liquor store shelf space and tap contracts.
Who is pouring Australia’s pint?
Japanese beverage conglomerates, Asahi and Kirin, hold the largest share of Australia’s beer market. Asahi Group, owner of Australian brewing company Carlton & United Breweries (CUB), has several popular mainstream brands in its portfolio, including Carlton, Victoria Bitter (VB), and Great Northern.Its main rival, Kirin Holdings, which operates Australasian company Lion, produces highly consumed beers such as Tooheys and XXXX. These two conglomerates also distribute various imported products across the country, including Heineken, Guinness, Corona, and Peroni.
Coopers, the largest Australian-owned brewery, and independent breweries also make their mark but have to contend with mainstream beers and imported brews. Australia’s beer is sold via two main channels: on-premises through taps in venues and off-premises in packaged form through retailers. The retail segment leaders are Coles Group’s Liquorland and First Choice Liquor alongside BWS and Dan Murphy’s, owned by Endeavour Group.
Have independent brewers become victims of their own success?
Over the years, Australians have shown a strong affinity for craft beer, enjoying unique pints in various styles and flavors, and exhibiting a preference for full-strength beer. Craft beer lovers typically reach for pale ales, lagers, and IPAs, with pale ale being the most consumed beer style among Australia’s craft drinkers.Despite consumers having developed a taste for locally owned and brewed beers, Australia’s independent brewery network has been struggling due to economic conditions and big brewing companies’ dominance. Multinational beverage companies have their foot in the craft scene’s door, selling their own varieties in the Australian market or having acquired independent breweries as part of their market portfolio. Alongside this, more competition has been generated for independent brewers by a rise in liquor store-own craft brews.
Is Australia’s beer market sobering up?
While full-strength pints endure as the most consumed type among Australia’s beer drinkers, the country’s industry is entering a new era. Companies are witnessing a gradual shift away from high-strength beers to mid-strength and low-strength alternatives, fueled by a rise in consumer alcohol moderation. Australia’s zero-alcohol beer market is gaining traction with no-alcohol versions of popular brands like Carlton Zero.Low and zero-carb options have also hit the Australian beer scene. Fast-growing zero-carb brand Better Beer continued to find success in 2024, and Lion introduced an ultra-low zero-carb version of its XXXX beer. With consumers welcoming new and exciting products within the Australian market, the non-alcoholic and low-carb segments are becoming serious contenders that could disrupt the commercial beer market and eat into the market share of established mainstream brands.
