World Beer Industry Term Paper

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Beer Industry

The objective of this study is to examine the differences in beer consumption in countries throughout the world and to attempt to provide an explanation for the differences in country consumption of beer.

Summary of Beer Consumption Throughout the World

According to the Kirin Institute of Food and Lifestyle Report (2011) on Global Beer Consumption by Country in 2010, global beer consumption "amounted to 182.69 million kiloliters in 2010, up 2.4% from the previous year, marking the 25th consecutive annual increase." (Kirin News Release, 2011) In addition, it is reported that China "remained the largest beer-consuming country in the world for the eighth consecutive year, consuming 5.9% more beer in 2010 than in 2009." (Kirin News Release, 2011) It is reported that NAFTA has provided its members "access to a beer market worth an estimated $73.36 billion dollars in 2002. (McGowan, ndp.42) The U.S. Brewing industry is reported to include "approximately 1,800 breweries and importers, 2,200 wholesalers and 560,000 retailers." (McGowan, nd, p.42) It is reported in another study that beer could not be transported very far until the middle of the 21st century due to its short shelf life. (It is interesting to note that the beer industry spends approximately $975 million each year on advertising. (Pontinen, nd)

II. Largest Beer-Consuming Countries in the World

The largest beer-consuming countries in the world are reported to be Nigeria, India, and Brazil and to be those achieving the highest growth at 17.2%, 17.0%, and 16.0% respectively in beer consumption. (Kirin News Release, 2011) There was 5.3% more beer consumed in 2010 than in 2009 in Asia, which is reported to have "maintained its growth momentum in beer consumption for more than 10 years, and took a 33.6% share of the global beer market in 2010." (Kirin News Release, 2011) Africa is reported to have achieved "annual growth of 10.1% in 2010.

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" (Kirin News Release, 2011) Reported as well is that Asia, Latin America, and Africa "collectively drove global beer consumption in 2010." (Kirin News Release, 2011)

III. 2010 Beer Consumption Rankings by Countries

Ranking number one in beer consumption in 2010 was China, which has a 24.5% share of the Global Market, and second in beer consumption in 2010 was the United States with a 13.7% share of the global market. Brazil, Russia, Germany, Mexico, and Japan ranked third, fourth, fifth, sixth and seventh, respectively. Global beer consumption by region reports shows Asia ranked number one with 33.6% of the global market share and Japan ranked as second with a 32% share of the global market.

Other Asian counties ranked number three with a 30.4% share of the global market. Listed as fourth is Europe with a 27.7% share of the global market and North America is ranked at fifth with a 14.5% share of the global market. Ranked sixth, seventh, eighth, ninth, and tenth are Latin America, Africa, the Middle East, and Oceania respectively with a 16.2%, 6.1%, 0.7%, and 1.2% share of the global market respectively.

IV. Beer Industry Report

A beer industry report shows that more adults consume beer than either wine or liquor with beer consumption stated at 52% in terms of its share of retail dollar sales with Wine and liquor stated at 15% and 33% of retail dollars shares respectively. The global beer market sales in millions of barrels have grown from the 1983 amount of 186 million barrels to the 2008 total of 218 million barrels. Beer is number four in the 'Top 10 Edible Grocery Categories' following milk at $3,102 million in sales, carbonated beverages at $2,791 million in sales,.....

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