E-Malt.com News article: Australia: With overall rate of beer drinking declining the craft beer industry continues to grow

The rise of craft beer in Australia is leading some experts to believe the brew might be the perfect drink for Australia's changing alcohol consumption habits, ABC reported on August 5.

As the rate of beer drinking declines in Australia, the craft beer industry continues to grow, with large-scale brewing operations, local craft beer gardens and gypsy brewers (contract brewers) carving out their portion of the market.

According to the most recent Australian Health Survey, between 2010 and 2013 alcohol consumption in Australia dropped, with daily drinking at its lowest level since 1991.

IBISWorld senior industry analyst Andrew Ledovskikh said alcohol consumption habits in Australia were changing, contributing to the rise in popularity of boutique brands.

"We definitely are seeing a shift in the way Australians are looking at alcohol," Mr Ledovskikh said.

"People are turning away from traditional beer, so while craft beer is booming, actual beer consumption is dropping.

"Although they are reducing their overall alcohol consumption, craft beer is a little less associated with excess drinking or binge drinking.

"It is seen as a bit more of an experience — an experience that can be enjoyed without the negative connotations of alcohol."

Beer blogger and brewer Darren Magin agreed, saying craft beer encouraged a more moderate drinking culture.

"People's drinking habits are changing," said Mr Magin, who works at Brisbane-based craft brewery and restaurant Newstead Brewing Co.

"[People] don't mind paying an extra couple of bucks and drinking a few less at the end of the night, if they have drunk some quality beer — often lovingly produced in a small batch by the guy up the road."

When Mr Magin arrived in Australia from the UK eight years ago, the beer market could be described as "mainstream, mainstream, mainstream".

"I was honestly shocked that there were just mainstream beers about," he said.

For a country with the notorious reputation of the Aussie beer drinker, Mr Magin said the market had been dominated by "Australian" beers that were not even Australian-owned anymore.

Eight years later the craft beer sector has exploded, making up about 9 per cent of the Australian beer market, and estimated to be worth upwards of A$400 million in 2015-16.

"I hope I'm still in the bubble in 15-20 years’ time. Who knows? When I was a kid denim dungarees were cool, and they went out of fashion pretty quick.

"People's drinking habits will change, but I don't think it is anywhere soon. I think there is a good few decades in this."

Mr Ledovskikh said he expected the market to continue to grow in the next few years, but cautioned there would be a tipping point.

"There's only so much room for craft beer in the market until you reach saturation," he said.

"We have room to grow, but we think it's going to slow to about 6 per cent over the next five years."

A 2014 report for Roy Morgan described craft beer drinkers as "young, cultured, connected, clued in and cashed up", pointing to the 25-34-year-old demographic as drivers of the market.

Mr Magin said young people were more inclined to buy locally.

"When I first came over [to Australia] there was a really big drive of Australian owned, Australian made," he said.

"I reckon there is a demographic of youngsters, let's say 16 or 17 year olds, exposed to this seven or eight years ago.

"They are in their mid-twenties now and they are the guys that are buying craft beer. I think people have got that ingrained and are looking to support local."

Dr John Toumbourou, professor in psychology at Deakin University, said attitudes to drinking in Australia were slowly changing, and craft beer might be the perfect fit for the changing consumption habits.

"We are noticing that there are more young people in secondary school choosing not to use alcohol at all," Dr Toumbourou said.

He said craft beer was a drink suited to Australia's changing drinking habits, with its price and availability encouraging more responsible consumption.

"[The] trends we're looking for in a future where alcohol might cause less harm in Australia, [are] to see the price of alcohol higher and to see it less easily available, but also to see that Australians are showing less demand for intoxicated drinking," Dr Toumbourou said.

"We're also looking for some way to see that the Australian public is changing in the way that they're using alcohol. All of these things might be a trend towards moderation."

Mr Magin said he hoped the reputation of beer would not stop people from trying new flavours.

"I wish people would give it a go. There is nothing scary about beer," he said.

"It is not that thing that you drink to get drunk and beat your mates up anymore."


07 August, 2016