American Beer Market and Brewery Industry

Introduction

To understand the challenges and opportunities that companies face in the brewery industry, one has to consider not only economic but also sociocultural and technological factors. Thus, one will be able to outline several important opportunities for readers’ consideration. For example, the development of aluminum cans as a container for drinks can be seen as a crucial opportunity for beer production.

Another important change for the beer industry to enjoy is the development of the cold chain transportation mechanism. The specified type of technology has provided a chance to control the temperature of the end product when it is being delivered to its target customers. In addition, the analysis of the lives of the industry’s target demographic will indicate that college students represent an untapped material that the industry should target in order to increase sales (Datta, 2017). Since the college culture often implies placing emphasis on partying as much as it does on studying, the introduction of college campuses into the range of areas where the industry could advance should be seen as essential.

Main body

The promotion of environmentalism-focused policies is another opportunity that needs to be pursued. Since a range of people tend to purchase a product if it was designed specifically not to affect the environment negatively, creating the corresponding product should also be deemed as necessary by the company. Finally, the current regulations that encourage the beverage industry can be regarded as an important opportunity for organizations operating in it to benefit (Nickerson & Hall, 2017). The recent decision to reduce the number of taxes for people employed in the brewery industry has had a significantly positive effect on the economic growth of beer-producing companies.

As far as threats to the industry are concerned, one should mention that one of the foundational obstacles is linked inextricably to one of the opportunities. Specifically, the present regulations need to be addressed as one of the most controversial aspects of the environment in which beer companies operate. The existing regulations do not allow the introduction of a cost-effective strategy for managing resources and setting prices. As a result, beer companies are forced to take significant losses when expanding into the larger American market and embrace broader audiences.

Environmental concerns also deserve to be listed among the issues that are likely to affect the performance of beer companies in the U.S. economic context. With the recent environmental policies of the Trump administration, wildlife has been under a significant threat, which has affected the process of growing crops for beer production. Specifically, water sanitation and the associated tasks have become the source of continuous concern (Tomsky & Dunai, 2019). The development of indirect competition in the selected field could also become a problem and finally develop into a threat in the context of the American market. For example, the increase in the availability of marijuana and recreational drugs, in general, may hamper the promotion of beer to the target population.

Conclusion

The effects of sociocultural trends on the development of potential customers; attitude toward beer also needs to be addressed as a tangible threat. Although the idea of a healthy lifestyle is an admittedly positive one, the recent tendency to view beer consumption as an inexcusably deleterious factor affecting public health is concerning. The proponents of the described trend tend to omit the positive effects of beer consumption and focus on the outcomes of unhealthy drinking, which distorts the reality and averts people from buying beer completely.

References

Datta, Y. (2017). The U.S. beer market: A competitive profile. Journal of Economics and Public Finance, 3(4), 541-579. Web.

Nickerson, M. A., & Hall, L. (2017). ICYMI | New York pours tax incentives into the craft brewing industry. CPA Journal. Web.

Tomski, P., & Dunay, A. (2019). Environmental safety as a challenge for management practice in the brewing industry in the era of craft beer revolution. System Safety: Human-Technical Facility-Environment, 1(1), 431-440.

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StudyCorgi. "American Beer Market and Brewery Industry." July 25, 2021. https://studycorgi.com/american-beer-market-and-brewery-industry/.

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StudyCorgi. 2021. "American Beer Market and Brewery Industry." July 25, 2021. https://studycorgi.com/american-beer-market-and-brewery-industry/.

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