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Craft Beer Production in Australia - Market Research Report (2015-2030)

Michael Doyle Michael Doyle Melbourne, Australia Last Updated: January 2025 ANZSIC OD5071

Revenue

$1.8bn

2025-26

$1.8bn

Past 5-Year Growth

Profit

$XXX.Xm

Employees

4,796

Businesses

743

Wages

$XXX.Xm

Craft Beer Production in Australia industry analysis

As per capita beer consumption declines, consumers are opting for premium-priced craft beers, valuing quality over quantity. This has resulted in craft beer’s share of the overall beer market rising significantly from 16.7% in 2019-20 to 20.3% by 2024-25. This shift has prompted major brewers Asahi and Lion to shift their focus to craft beer production to leverage higher profit margins. These major brewers focusing heavily on craft beer has increased overall revenue, promoted market share concentration and pressured smaller independent brewers. Rising operational costs, particularly for raw materials and excise taxes, have squeezed profit margins, with many brewers struggling to pass on these costs to consumers. Consequently, some smaller breweries have undergone closures or restructuring. Despite craft beer's growing popularity, declining per-capita beer consumption presents a challenge, with craft brewers needing to adapt by diversifying product offerings and enhancing marketing strategies to remain competitive. Industrywide revenue has been climbing at an annualised 3.4% over the past five years and is expected to total $5.8 billion in 2024-25, when revenue will fall by 0.1%.

Trends and Insights

  • Craft beer's share of the overall beer market has significantly expanded, driving revenue growth. It rose from 16.7% in 2019-20 to 20.3% in 2024-25 as consumers increasingly drink craft beer instead of traditional beer.
  • Craft beer producers are branching out into more niche varieties. This includes sour beer and wheat beer and introducing new flavours.
  • Victoria is the largest craft beer-producing state in Australia. Brewers have started up to meet demand from the state’s strong pub and bar culture.
  • Large multinational brewers are buying up craft brewers and expanding their share of the industry. For example, Lion bought Fermentum, owner of the likes of Stone & Wood and Two Birds Brewing, in 2021.

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  • Market estimates from 2015-2030
  • Critical performance data and rankings
  • Detailed analysis of competitive forces and the external environment
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Industry Statistics and Trends

Market size and recent performance (2015-2030)

Industry revenue has grown at a CAGR of 5.6 % over the past five years, to reach an estimated $1.8bn in 2025.

Trends and Insights

Major brewers are shifting to craft beers, boosting revenue and promoting market share concentration

  • Asahi and Lion, the country's two largest beer manufacturers, have explicitly stated their intentions to tap into the growing popularity of craft beer. This strategic shift is driven by the premium price points and better profit margins that craft beers offer compared to traditional beers. The companies have expanded their market presence through acquisitions and significant marketing investments, reshaping the craft beer landscape.
  • Additional trends and insights available with purchase
Craft Beer Production in Australia
Revenue (2015-2030)
IBISWorld Logo Source: IBISWorld

Industry outlook (2025-2030)

Market size is projected to grow over the next five years.

Trends and Insights

Craft beer producers will continue to benefit from shifting tastes and preferences

  • The line between craft and mass-produced beer is blurring as multinational companies are entering the craft segment. This is intensifying competition and making it more challenging for independent brewers to stand out solely based on the "craft" designation. In response, craft brewers will continuously innovate their product offerings to keep consumers interested and engaged. As consumer tastes evolve, introducing new beer varieties, unique flavours and seasonal batches is essential for attracting and retaining customers in the competitive craft beer market.

Biggest companies in the Craft Beer Production in Australia

Company
Market Share (%)
2025
Revenue ($m)
2025
Lion
462.8
Asahi Holdings
334.1
Good Drinks Australia
94.7

To view the market share and analysis for all 3 top companies in this industry, view purchase options.

Products & Services Segmentation

Craft Beer Production in Australia
Products & Services
IBISWorld Logo Source: IBISWorld

Industry revenue is measured across several distinct product and services lines, including Ales, Lagers and Stouts and porters. Ales is the largest segment of the Craft Beer Production in Australia.

Trends and Insights

Extra pale ales are driving the ale segment higher

  • The ale segment includes a variety of ales, like pale ale, brown ale, golden ale and amber ale.
  • More insights available in the full report

Table of Contents

About this industry

Industry definition

Craft brewers produce craft beer. The industry includes independent brewers and large multinational companies that brew craft beer. Contract brewers are not included in the industry.

What's included in this industry?

AleLagersStouts and portersSour beerWheat beerGinger beerGose

Companies

LionAsahi HoldingsGood Drinks Australia

Purchase this report to view all 3 major companies in this industry.

Related Terms

MICROBREWERYDISTRIBUTORSPALE ALEINDIA PALE ALE (IPA)

Industry Code

ANZSIC 2006

ANZSIC 1212 - Craft Beer Production in Australia

Performance

Get an indication of the industry's health through historical, current and forward-looking trends in the performance indicators that make or break businesses.

Analyst insights

Craft beer's share of the overall beer market has significantly expanded, driving revenue growth. It rose from 16.7% in 2019-20 to 20.3% in 2024-25 as consumers increasingly ...

In this chapter (4)

  • Current Performance
  • Outlook
  • Volatility
  • Life Cycle

Key metrics

  • Annual Revenue, Recent Growth, Forecast, Revenue Volatility
  • Number of Employees, Recent Growth, Forecast, Employees per Business, Revenue per Employee
  • Number of Businesses, Recent Growth, Forecast, Employees per Business, Revenue per Business
  • Total Profit, Profit Margin, Profit per Business

Charts

  • Revenue, including historical (2015-2024) and forecast (2025-2030)
  • Employees, including historical (2015-2024) and forecast (2025-2030)
  • Businesses, including historical (2015-2024) and forecast (2025-2030)
  • Profit, including historical (2015-2025)
  • Industry Volatility vs. Revenue Growth
  • Industry Life Cycle

Detailed analysis

  • Trends in supply, demand and current events that are driving current industry performance
  • Expected trends, economic factors and ongoing events that drive the industry's outlook
  • Key success factors for businesses to overcome volatility
  • How contribution to GDP, industry saturation, innovation, consolidation, and technology and systems influence the industry's life cycle phase.

Products and Markets

Learn about an industry's products and services, markets and trends in international trade.

Analyst insight

Craft beer producers are branching out into more niche varieties. This includes sour beer and wheat beer and introducing new flavours.

In this chapter

  • Products & Services
  • Major Markets
  • International Trade

Key metrics

  • Largest market segment and value in 2025
  • Product innovation level
  • Total imports, level and trend
  • Total exports, level and trend
  • Trade Balance

Charts

  • Products & services segmentation in 2025
  • Major market segmentation in 2025
  • International trade, including imports by country and exports by country

Detailed analysis

  • Trends impacting the recent performance of the industry's various segments
  • Innovations in the industry's product or service offering, specialization or delivery method
  • Key factors that successful businesses consider in their offerings
  • Buying segments and key trends influencing demand for industry products and services
  • Recent trends in import and export volumes, country of origin or destination, and expected future trends

Geographic Breakdown

Discover where business activity is most concentrated in an industry and the factors driving these trends to find opportunities and conduct regional benchmarking.

Analyst insights

Victoria is the largest craft beer-producing state in Australia. Brewers have started up to meet demand from the state’s strong pub and bar culture.

In this chapter (1)

  • Business Locations

Charts

  • Share of revenue, establishment, wages and employment in each region
  • Share of population compared to establishments in each region in 2025

Tables

  • Number and share of establishments in each region in 2025
  • Number and share of revenue each region accounts for in 2025
  • Number and share of wages each region accounts for in 2025
  • Number and share of employees in each region in 2025

Detailed analysis

  • Geographic spread of the industry across Asia Pacific, and trends associated with changes in the business landscape
  • Key success factors for businesses to use location to their advantage

Competitive Forces

Get data and insights on what's driving competition in an industry and the challenges industry operators and new entrants may face, with analysis built around Porter's Five Forces framework.

Analyst insights

Large multinational brewers are buying up craft brewers and expanding their share of the industry. For example, Lion bought Fermentum, owner of the likes of Stone & Wood and ...

In this chapter (4)

  • Concentration
  • Barriers to Entry
  • Substitutes
  • Buyer & Supplier Analysis

Key metrics

  • Industry concentration level
  • Industry competition level and trend
  • Barriers to entry level and trend
  • Substitutes level and trend
  • Buyer power level and trend
  • Supplier power level and trend

Charts

  • Market share concentration among the top 4 suppliers from 2020-2025
  • Supply chain including upstream supplying industries and downstream buying industries, flow chart

Detailed analysis

  • Factors impacting the industry’s level of concentration, such as business distribution, new entrants, or merger and acquisition activity.
  • Key success factors for businesses to manage the competitive environment of the industry.
  • Challenges that potential industry entrants face such as legal, start-up costs, differentiation, labor/capital intensity and capital expenses.
  • Key success factors for potential entrants to overcome barriers to entry.
  • Competitive threats from potential substitutes for the industry’s own products and services.
  • Key success factors for how successful businesses can compete with substitutes.
  • Advantages that buyers have to keep favorable purchasing conditions.
  • Advantages that suppliers have to maintain favorable selling conditions.
  • Key success factors for how businesses can navigate buyer and supplier power.

Companies

Learn about the performance of the top companies in the industry.

Analyst insights

The major brewers' market share has shot up over the past decade. This is largely because of a spate of acquisitions by the three largest craft beer manufacturers.

In this chapter

  • Market Share Concentration
  • Companies
  • Company Spotlights

Charts

  • Industry market share by company in 2021 through 2025
  • Major companies in the industry, including market share, revenue, profit and profit margin in 2025
  • Overview of Lion's performance by revenue, market share and profit margin from 2019 through 2025
  • Overview of Asahi Holdings's performance by revenue, market share and profit margin from 2019 through 2025
  • Overview of Good Drinks Australia's performance by revenue, market share and profit margin from 2019 through 2025

Detailed analysis

  • Description and key data for Lion, and factors influencing its performance in the industry
  • Description and key data for Asahi Holdings, and factors influencing its performance in the industry
  • Description and key data for Good Drinks Australia, and factors influencing its performance in the industry

External Environment

Understand the demographic, economic and regulatory factors that shape how businesses in an industry perform.   

Analyst insights

Per capita alcohol consumption trends pose a threat to craft beer demand. Declines in overall alcohol consumption reflect cultural shifts towards health consciousness, repres...

In this chapter

  • External Drivers
  • Regulation & Policy
  • Assistance

Key metrics

  • Regulation & policy level and trend
  • Assistance level and trend

Charts

  • Regulation & Policy historical data and forecast (2015-2030) 
  • Assistance historical data and forecast (2015-2030) 

Detailed analysis

  • Demographic and macroeconomic factors influencing the industry, including Regulation & Policy and Assistance
  • Major types of regulations, regulatory bodies, industry standards or specific regulations impacting requirements for industry operators
  • Key governmental and non-governmental groups or policies that may provide some relief for industry operators.

Financial Benchmarks

View average costs for industry operators and compare financial data against an industry's financial benchmarks over time. 

Analyst insights

Profit margins have declined over the past five years. Despite consumer willingness to pay for craft beer, increased operational expenses and intense competition have diminis...

In this chapter

  • Cost Structure
  • Financial Ratios
  • Key Ratios

Key metrics

  • Profit margin, and how it compares to the sector-wide margin
  • Average wages, and how it compares to the sector-wide average wage
  • Largest cost component as a percentage of revenue
  • Industry average ratios for days' receivables, industry coverage and debt-to-net-worth ratio

Charts

  • Average industry operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2025
  • Average sector operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2025
  • Investment vs. share of economy

Data tables

  • Cash Flow & Debt Service Ratios (2015-2030)
  • Revenue per Employee (2015-2030)
  • Revenue per Enterprise (2015-2030)
  • Employees per Establishment (2015-2030)
  • Employees per Enterprise (2015-2030)
  • Average Wage (2015-2030)
  • Wages/Revenue (2015-2030)
  • Establishments per Enterprise (2015-2030)
  • IVA/Revenue (2015-2030)
  • Imports/Demand (2015-2030)
  • Exports/Revenue (2015-2030)

Detailed analysis

  • Trends in the cost component for industry operators and their impact on industry costs and profitability 

Key Statistics

Industry Data

Data Tables

Including values and annual change:

  • Revenue (2015-2030)
  • IVA (2015-2030)
  • Establishments (2015-2030)
  • Enterprises (2015-2030)
  • Employment (2015-2030)
  • Exports (2015-2030)
  • Imports (2015-2030)
  • Wages (2015-2030)

Top Questions Answered

Unlock comprehensive answers and precise data upon purchase. View purchase options.

What is the market size of the Craft Beer Production industry in Australia in 2025?

The market size of the Craft Beer Production industry in Australia is $1.8bn in 2025.

How many businesses are there in the Craft Beer Production in Australia industry in 2025?

There are 743 businesses in the Craft Beer Production industry in Australia, which has grown at a CAGR of 8.0 % between 2020 and 2025.

Has the Craft Beer Production industry in Australia grown or declined over the past 5 years?

The market size of the Craft Beer Production industry in Australia has been growing at a CAGR of 5.6 % between 2020 and 2025.

What is the forecast growth of the Craft Beer Production industry in Australia over the next 5 years?

Over the next five years, the Craft Beer Production industry in Australia is expected to grow.

What are the biggest companies in the Craft Beer Production market in Australia?

The biggest companies operating in the Craft Beer Production market in Australia are Lion, Asahi Holdings and Good Drinks Australia

What does the Craft Beer Production in Australia include?

Ale and Lagers are part of the Craft Beer Production industry.

Which companies have the highest market share in the Craft Beer Production in Australia?

The company holding the most market share in Australia is Lion.

How competitive is the Craft Beer Production industry in Australia?

The level of competition is high and steady in the Craft Beer Production industry in Australia.

Related Industries

Widen your competitive advantage with related industries

View all industries in Australia

Methodology

How are IBISWorld reports created?

IBISWorld has been a leading provider of trusted industry research for over 50 years to the most successful companies worldwide. With offices in Australia, the United States, the United Kingdom, Germany and China, we are proud to have local teams of analysts that conduct research, data analysis and forecasting to produce data-driven industry reports.

Our analysts start with official, verified and publicly available sources of data to build the most accurate picture of each industry. Analysts then leverage their expertise and knowledge of the local markets to synthesize trends into digestible content for IBISWorld readers. Finally, each report is reviewed by one of IBISWorld’s editors, who provide quality assurance to ensure accuracy and readability.

IBISWorld relies on human-verified data and human-written analysis to compile each standard industry report. We do not use generative AI tools to write insights, although members can choose to leverage AI-based tools within the platform to generate additional analysis formats.

What data sources do IBISWorld analysts use?

Each industry report incorporates data and research from government databases, industry-specific sources, industry contacts, and our own proprietary database of statistics and analysis to provide balanced, independent and accurate insights.

Key data sources in Australia include:

  • Australian Bureau of Statistics
  • Australian Taxation Office
  • Australian Securities & Investments Commission

Analysts also use industry specific sources to complement catch-all sources, although their perspective may focus on a particular organization or representative body, rather than a clear overview of all industry operations. However, when balanced against other perspectives, industry-specific sources provide insights into industry trends.

These sources include:

  • Industry and trade associations
  • Industry federations or regulators
  • Major industry players annual or quarterly filings

Finally, IBISWorld’s global data scientists maintain a proprietary database of macroeconomic and demand drivers, which our analysts use to help inform industry data and trends. They also maintain a database of statistics and analysis on thousands of industries, which has been built over our more than 50-year history and offers comprehensive insights into long-term trends.

How does IBISWorld forecast its data?

IBISWorld’s analysts and data scientists use the sources above to create forecasts for our proprietary datasets and industry statistics. Depending on the dataset, they may use regression analysis, multivariate analysis, time-series analysis or exponential smoothing techniques to project future data for the industry or driver. Additionally, analysts will leverage their local knowledge of industry operating and regulatory conditions to impart their best judgment on the forecast model.

IBISWorld prides itself on being a trusted, independent source of data, with over 50 years of experience building and maintaining rich datasets and forecasting tools. We are proud to be the keystone source of industry information for thousands of companies across the world.

Learn more about our methodology and data sourcing on the Help Center.