Heinekin Case study- European brewing industry

Essay by lisaocUniversity, Bachelor'sA-, August 2006

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Question one: What are the major trends within the European brewing industry?

Within the western countries the beer market has become more stagnated while in the East the beer market is growing rapidly with growing demand. Europe has the largest demand for the beer market, and has the largest beer consumption per head. The growth of the global beer market production volume is about 2.5 million tons per year. While the beer industry is growing popular so is the wine industry while the spirits industry is declining.

The beer market is saturated by too many players it is not a booming growing market and production growth is minimal. As there are many players there is fierce competition.

There is rapid growth within leisure spending, this means attending bars, pubs and clubs which are all outsourcing beer. However the trend in drinking at home is also rising, it is cheaper and better value for money.

Until change in smoking laws in 2007 drinking at home may be popular but decrease when the ban in put into place, so they can enjoy drinking and socializing without having to ru the risk of passive smoking.

Consumers are growing more and more health conscious and fitness aware the affects of alcohol are similar but beer however has additional side affects such as bloating, weight gain and gas. These could sway consumers to drink other alcoholic beverages.

From 1993 to 1999, the world beer production volume had grown by 12%. In 2000, the total world beer output was 1.395 billion hectoliters, which was 368 million hectoliters by Asia, 300 million hectoliters by West Europe, 165 million hectoliters by east Europe, 65 million hectoliters by Africa, 22 million hectoliters from Australia and the rest from America.

The first three countries of high beer consumption per head...