Despite some positive signs, the European brewing industry is experiencing a further decline. Specifically, alcohol consumption is declining across the continent due to social problems associated with alcohol consumption, and a recent government campaign against drunken driving. The beer industry creates over two million jobs, with a lot of them created across the entire production chain. However, the volume of sales is declining. This is caused by a combination of high competition, environmental factors and governmental campaigns against alcohol consumption.
The most notable trend in the industry is the rise of premium segments. In fact, the growth rate of premium beer segments has been much higher than those of the general market, while the profit margins of these sectors have also been attractive. These segments have been driven by the high rate of technological transfer, which has made it possible to acquire modern production technologies. These technologies have also facilitated the improvement of the supply chain and allowed for a more streamlined operation.
Another important development in the sector is the increasing number of mergers and acquisitions. As trade barriers were lifted, these companies had an opportunity to gain a foothold in European markets. This led to an increase in cross-boarder mergers and acquisitions. Similarly, M&A activities also lead to the creation of loose confederations of local businesses. This type of consolidation helps to lower costs by eliminating redundant operations. This trend has also been aided by increased investment and trade between European countries. The industry may see a further boost in the summer of 2021 as the restrictions on the sale of alcoholic beverages are eased.
Another trend is the increased popularity of wine and beer hospitality. These industries provide a welcome economic boost to the governments of the affected regions. This trend is accompanied by an increased level of consumer awareness, resulting in more people buying beer from retailers. The brewing industry has also been able to develop alternative sources of energy.
The emergence of the Internet and digital technology has also been beneficial to the industry. It has provided the ability to utilize marketing data more efficiently and to improve the efficiency of the supply chain. It also has helped to create a more standardized innovation process. It has also enabled the brewer to accelerate the launch of new products.
In addition, the European brewing industry has also been able to respond to trends in the industry through mergers and acquisitions. As a result, a number of smaller and medium-sized breweries have been put at risk. These small and medium-sized breweries are now looking to reduce costs through cost savings in the manufacturing process. They are also attempting to improve their supply chain efficiency through improved procurement practices.
Overall, a high level of competition has limited the rapid penetration of new entrants in the European beer market. Nevertheless, there are still opportunities for the industry to innovate and improve its offerings. It has also become increasingly important for brewers to improve their organizational structure and processes. In order to compete effectively, brewers have had to re-evaluate their mindsets and behaviors along the entire value chain.