Point 1: Global beer consumption has plateaued
Beer has been losing its’ appeal for some time. Decreasing popularity of alcoholic beverages and increasing competition within the alcoholic beverage category have been the major drivers behind the negative trend. It seems increasingly likely best days for brewers are behind us.
Point 2: Emerging markets are the last resort of the beer industry
Beer production has been in decline in the US for some time already. Emerging markets provided some respite against weakness in the developed countries. The beer industry faces global volume declines once beer consumption hits the wall in emerging markets.
Point 3: Competition within the beer industry is heating up
Craft beer produced by small independent breweries has been gaining popularity with consumers. National and international brands have been losing shelf space to numerous small-scale producers. The beer industry, once dominated by a few global producers, is becoming increasingly competitive.
