Rabobank Report: Why Premiumisation Matters Now More than Ever
Report summary
Why Premiumisation Matters Now More than Ever
Megabrew and the Impact on Smaller Brewers
As market for beer mature, and health-conscious drinkers limit their consumption, it is becoming harder for brewers to find regions where volumes are still rising. Selling 'less but better' beer for higher margins remains an...
The beer market today is at a crossroads and the outlook for brewers is changing. Back at the start of the century, consumption was growing by low- to mid-single digits each year and more than half of the countries saw significant market volume increses. In such an environment, 'all' that brewers need to do in order to benefit from the growth of the beer profit pool, was to keep their market shares and margins stable. In most countries, brewers refrained from starting price wars and the brewing industry was prosperous and high cash generative.
From 2000 to 2013, the global beer profit pool grew by 7.5% per year. as both volumes and profitability per hectolite increased.
Over the last four years however, total beer consumption declined, as has the number of countries with significant volume increases...
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