The alcoholic beverage industry as a whole is on a decline in Australia from the

beginning of 2008. The per-capita consumption of alcohol has been on a constant

decline for the past six years, as the population has become more fussy about
their drinks. Not only the alcoholic consumption has decreased, the liquor retailer
revenues have also fallen drastically. According to NABs agribusiness economist
Vyanne Lai and one liqour industry insider, the major reasons pertaining to this
decline are1. The rise of mid-strength drinks
The market share of mid-strength drinks like XXXX Gold,VB Gold and
Coopers Mild Ale has significantly increased. This has led to decreased
market share for the beer consumption as a whole.
2. People prefer premium drinks
The number of favourite brands has changed from 2-3 to 7-10 in the past
fifteen years. This has led to people preferring more expensive alcoholic
drinks like cider and boutique beers , which tend to be associated with
quality and not quantity.
3. Demographic changes and an ageing population
In recent times, Australia has welcomed increasing number of migrants
from China and India, where the culture is not there for heavy drinking.
Hence, the expats have contributed significantly in bringing the average
consumption down.
4. Fewer tradies, more professionals
A shift from manual to professional labour is one of the important factor
that has led to this decrease. Getting drunk in front of their colleagues has
been a major reason for the reduction in the per-capita consumption in the
professionals.
5. Tougher drink driving laws and advertising
New laws imposed have made Australians wary of driving while under the
influence of alcohol . Drunk driving has become less culturally acceptable
and has contributed in reducing the per-capita consumption.
6. Health Awareness
The population has become more aware about their health issues and
have, as a result, significantly reduced the alcoholic consumption. As
stated by Dr Nadine Ezard, the clinical director of the Alcohol and Drug
Service at St Vincents hospital in Sydney, alcohol-related harm remained
one of the nations biggest social and health challenge.
While the beer industry is declining, still the producers are able to see a faint
light at the end of the tunnel by diversifying into cider production. The cider
industry has witnessed a recent growth in the market share and the predictions
for future look bright, with the gain in market share nearly equating to the loss of
market share of beer.

Another strategy that is being undertaken by a majority Australian Brewers is

realigning their business strategies to focus and capitalise on the craft beer
production. The predictions for the craft beer industry are bright with a 10.0%
annual growth rate predicted for the next five years.
The wine industry has also contributed significantly in taking away the market
share of beer industry in Australia. Australia has emerged as a wine-making
economy on the world map. It has emerged as the worlds fourth largest wine
producer on the global front , however it is still 12 th in terms of per-capita
consumption. There is still huge scope for the brewers to explore the wine
industry and strike the hammer while the iron is hot.