Page 26 - Craft Beer and Independent Microbreweries in Ireland 2018

Current Performance of the Independent Microbrewery Sector

2.8 Export Markets
Survey respondents, who were engaged in exporting, were asked to rank their
top three export markets in order by export volume. Thirteen export markets
were mentioned, with France receiving the most mentions followed by the UK
and then Italy. The USA, Russia and the Netherlands also featured strongly.
Other countries mentioned were Netherlands, Belgium, Denmark, Austria,
Spain, and Canada.

Existing exporters were also asked to nominate the countries they believed
were the markets with the most potential for them. France again emerged as
the market with most perceived potential, followed by the USA, Italy and Spain.
Some 58% of microbrewers do not currently export, but 57% of these intend
to develop export markets in the next few years. When non-exporters were
asked to nominate the markets with the most potential, many were uncertain
and indicated geographical regions, such as “EU” or “Asia” rather than specific
countries. However, the USA emerged as their first choice for markets with
potential, followed by France and Italy.

2.9 Production Capacity
The survey asked respondents to report their current annual capacity. Based
on the data provided, it is estimated that the current (2017) capacity of the
microbrewing production companies is approximately 320,000hl.
It is clear that capacity in the sector is high relative to output. As output is
157,000 hl for 2017, the capacity estimate of 320,000 hl suggests a capacity
utilisation rate of 49.5%. This is a low utilisation rate. Unused capacity is
approximately 160,000hl.

The indications are that capacity will continue to grow apace. One in three
of responding microbreweries stated that they are currently investing in
even more capacity. In some cases, the proposed addition to capacity is very
substantial in microbrewing terms, amounting to typically more than 50% of
existing capacity.
Thus, it is clear that capacity will not act as a restraint on supply. Rather, with the
current slowing in the rate of growth of demand and the continued investment
in capacity, the prospect is that capacity will continue to substantially exceed
output for several years to come.

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