AUSTRALIA’S economic growth is likely to be weaker this year, with a reduction in domestic beer sales expected to have a knock-on effect on consumer spending.
The Australian Bureau of Statistics (ABS) has forecast the beer industry will lose $1.8 billion in the first quarter of 2019.
Bars, restaurants and cafes will see the biggest hit, with revenue dropping by 6.1 per cent.
But beer drinkers will benefit the most.
They’ll see an average boost of $3.88 per drink at bars and restaurants.
It will take just $3 to get a $2.50 beer at the bar.
Beer sales are already declining in Australia, with an overall decline of 2.3 per cent in the 12 months to March 2019, according to the Australian Beer Market Association.
“The big drop in beer sales is really a symptom of the recession,” said Steve Tindall, head of research at the ANZAC Research Institute.
In fact, in July, the Australian economy was still growing, despite the recession.
Australia’s beer sales are forecast to rise by 2.1 million units in 2019, up from 2.07 million last year.
Mr Tindill said the slump in beer consumption is likely because people are starting to look for alternatives.
He said the downturn in beer demand has been driven by the global economic crisis, with some drinkers abandoning the alcohol industry.
“Beer consumption in the world economy has been pretty bad, but that has also led people to find other things to consume,” he said.
“(In) some countries it is just going to be a matter of time before the economy is back to normal.”
Topics:economy,industry,government-and-politics,government,business-economics-and/or-finance,employment,beer,australiaFirst posted November 15, 2019 07:21:20Contact Tim TaylorMore stories from Australia