Michael Hussey, Senior Manager Alcohol & Seafood, Bord Bia - The Irish Food Board
Australia has the 3rd largest population of Irish diaspora globally (https://www.abs.gov.au/) with over 2 million who identify as Irish.
The Australian Whiskey market is worth €1.4bn (IWSR, 2019) and Irish Whiskey accounts for €74m (retail sales value) of that. From 2013 - 2019 Irish Whiskey had a CAGR (compound annual growth rate) of 10.7% and has showed no signs of slowing. Currently the vast majority of sales are Jameson, but with consumers looking for more premium whiskies, in line with trends in other developed whiskey markets, there is plenty of room for other authentic, Irish offerings with strong heritage and unique stories. IWSR has reported that the attraction to Jameson is due to its smooth, easy to drink nature and this is something Australian consumers associate with Irish Whiskey.
Traditionally most whiskey in Australia is consumed with cola and in RTD’s (Ready to Drink) format. Recently there has been a movement away from this because of the trend towards healthier lifestyles. The trend away from the cola mix will benefit premium offerings as the taste of the whiskey will be more important. Spirits consumption in Australia is dominated by older (55+) males, in line with most other whiskey drinking countries (GlobalData, 2019). However, with the growth in cocktail / mixology cultures among younger cohorts there are opportunities for other specialist and premium offers.
The craft beer market in Australia is booming, almost doubling its share of the beer market between 2015 and 2018, growing from 4% of the market to 7%. The Australian market is showing an increased demand for provenance, authenticity and individuality, (Euromonitor, 2018), all of which Irish craft brewers have in abundance. The total Australian beer market was worth almost €14 billion (Euromonitor, 2018).
Craft beer drinkers are notoriously disloyal and this is no different in Australia. Part of the thrill of drinking craft beer is about finding the most delicious beer and this means trying new beers. 75% of craft beer drinkers believe you need to support a craft breweries core range for them to survive. 66% love following the latest craft beer trends (https://www.beercartel.com.au/blog/2019-australian-craft-beer-survey-results/). These statistics epitomize the craft beer drinker:
Somebody passionate about the small producer, but looking to explore.
In the past year there has been significant growth in the purchasing of craft beer online. In 2019 30% of craft beer drinkers purchase beer online at least every six months or more often, compared to 22% in 2018 (https://www.beercartel.com.au/blog/2019-australian-craft-beer-survey-results/). Australian craft beer specialty websites account for the majority of purchases. Food delivery services are also capitalising on this trend and have started to offer beer delivery to their customers. This could be a potential avenue for Irish craft brewers to test the market, before committing to exclusivity agreements with distributors. There is an opportunity for Irish craft brewers to capture the loyalty of the Irish diaspora while also catching wandering eyes of craft beer drinkers with new exciting stories and tastes.
Bord Bia will be organising a market visit to Australia later in 2020 to learn about the market and meet some potential trade partners in the alcohol sector. For further information please contact Michael.hussey@bordbia.ie
References:
- Australian Bureau of Statistics. Australian Government. (2020). Retrieved 17 February 2020, from https://www.abs.gov.au/
- IWSR. Domestic Volume Report Australia. (2019). Retrieved 17 February 2020.
- GlobalData. Australian Beer & Cider Market Assessment. (2019). Retrieved 17 February 2020.
- Euromonitor. Strategic Competitive & Market Intelligence Software. (2018). Retrieved 17 February 2020.
- 2019 Australian Craft Beer Survey Results. (2020). Retrieved 17 February 2020, from https://www.beercartel.com.au/blog/2019-australian-craft-beer-survey-results/