Question

What are the strategically relevant components of the U.S. and global craft beer industry macro-environment? Prepare a PESTEL analysis to support your answer

Answer 1

Answer-

Market size
The craft beer industry reached $39.5 billion in 2016 in the U.S. The total economic impact of the beer market is estimated to be 1.5% of the total U.S. GDP. By 2020, the forecasted global sales will have reached $700 billion. This is seemingly fueled by the introduction of various styles of beer to regions where consumers have not previously had access, and the expansion of demographics not normally known for consuming beer. Hence, more and more people worldwide are drinking beer.

Regulations
Because the product is alcoholic in nature, there are strict regulations especially when it comes to distribution. Moreover, different states and countries have different regulations for alcohol.

Segmentation
Craft beer is a unique and customized product which differs from country to country, and even within the regions of a country. Therefore, segmentation is an important part of marketing your product to the right target market.

Acquisition
More and more big breweries are eyeing local microbreweries so that they can keep their market share in that area.

Rivalry
The beer industry is a very old industry. Competitors within this industry are well-known and global. Big breweries are now also facing the threat of microbreweries that serve better, more localized products than they do.