Sikkim Journal

Grand View Research, Inc.

Brewing Industry Procurement Outlook

Brewing is a process of regulating the interactions between water, starch, yeast, and hops to make beer. Following are the basic steps of brewing:

• A starch source (Grain or barley) is partially germinated or malted and dried. This partial germination allows easy conversion of the grain’s starches into sugars.
• The malted grains are then introduced to water and heat to enable the natural enzymes in the grain to convert its starches into fermentable sugars. It formed the mash.
• The mash is then filtered to remove the solids.
• The remaining liquid is then boiled. Hops can be added either at the beginning of the boil or towards the end based on the type of beer being made. The boiled output is called wort.
• The wort is filtered and cooled to a specific temperature, at which point yeast is added to begin the fermentation process.
• Fermentation can be done in a variety of vessels and can be followed by a period of conditioning (further aging away from dead yeast cells) or secondary fermentation (in bottles, e.g.). The outcome of this fermentation is beer.

Brewing Industry Demand Outlook

The global brewing market is expected to be valued at USD 45 billion by 2025 has grown at a CAGR of 7% from 2020 to 2025. The Asia Pacific is the largest geographic segment in the brewing market with a 30% market share. China and India have the largest customer base due to growth in per capita income and the ability to increase the share of wallet towards luxurious lifestyle resulting in a gradual shift of drinking preference towards alcoholic drinks.

Grab your copy, or request for a free sample of the “Brewing Industry Procurement Intelligence Report, published by Grand View Research” for In-depth details regarding supplier ranking and selection, sourcing, and pricing criteria & strategies.

Brewing Industry Cost Drivers

Malt, hops, yeast is the major ingredients for the brewing process and are key cost drivers of brewing. The industrial brewing cost structure is also driven by packaging cost, marketing cost, and taxes. These three components hold more than 50% of the overall brewing cost.

Add-on Services provided by Grand View Research Pipeline:

Should Cost Analysis – A should cost model is an all-important technique for deriving and forecasting the actual cost of a product/service over the forecasted period. It serves as a competitive edge for supplier negotiations by determining the actual price for the cost components. The outcome helps procurement leaders to understand detailed fact-based cost drivers for the category.

Rate Benchmarking – Every organization and its procurement team wants to negotiate the best deal while procuring a set of products or services. Rate benchmarking uses price/cost comparison of more than one set of products/services to analyze the most efficient combination that will help the procurement team to get the optimum rate.

Salary Benchmarking – Labor is one of the key cost components incurred while offering a product or service. Understanding the pricing structure of salary is important for organizations in selecting the appropriate supplier and to build a good negotiation strategy. It is also an important factor in determining whether the category under focus should be outsourced or built in-house.

Supplier Newsletter – It is cumbersome for any organization to continuously track the latest developments in their supplier landscape. Our newsletter service helps them remain updated, to avoid any supply chain disruption which they may face, and keep a track of the latest innovations from the suppliers. Outsourcing such activities help clients focus on their core offerings.

Brief about Pipeline by Grand View Research:

A smart and effective supply chain is essential for growth in any organization. Pipeline division at Grand View Research provides detailed insights on every aspect of supply chain which helps in efficient procurement decisions.

Our services include (not limited to):

• Market Intelligence involving – market size and forecast, growth factors, and driving trends
• Price and Cost Intelligence – pricing models adopted for the category, total cost of ownerships
• Supplier Intelligence – rich insight on supplier landscape, and identifies suppliers who are dominating, emerging, lounging, and specializing

Sourcing / Procurement Intelligence – best practices followed in the industry, identifying standard KPIs and SLAs, peer analysis, negotiation strategies to be utilized with the suppliers, and best suited countries for sourcing to minimize supply chain disruptions

Browse through Grand View Research’s collection of procurement intelligence studies:

Phosphate Industry Procurement Intelligence – The global phosphate market was valued at USD 72 billion in 2020 and it is expected to grow at a CAGR of 2% from 2020 to 2027 majorly due to the rising demand for ammonium phosphate, from the manufacturing market. APAC is leading the global phosphate market with more than 40% share followed by Europe and North America.

Polyvinyl acetate Industry Procurement Intelligence – The global polyvinyl acetate market was valued at ~USD 5 billion in 2020 and it is expected to grow at a CAGR of 5% from 2021 to 2027 due to increasing demand for adhesive from key industries such as construction, automotive, and furniture.

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