Macroenvironmental forces that affect the beer industry

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When experts use the term macroenviromental they simply mean those forces which are outside of a businesses immediate control. These include the level of competition in a market and the regulatory environment as well as the way a product is historically perceived. The brewing industry provides fascinating case of macroenviromental forces at work. Alcohol beverages are perhaps the oldest artificial substances ever created. The story of the industry involved in their current creation is complex.


The brewing industry has always been subject to varying degrees of regulation which have at times had drastic effects on sales. The most extreme case being in the US in the 1920s when Prohibition made the sale of alcoholic drinks illegal. Many of American beer brewers simply closed down their businesses. Today brewers have to account for regulations on the age of customer they can sell to as well as special taxes placed on alcohol.


Brewing is a very old art and science but the changes brought by the macroenviromental forces of technology have greatly changed the industry. Refrigeration and motorised transport allowed for the consolidation of the brewing industry worldwide. Large brands of beer and alcohol are now internationally recognised and account for the majority of consumption. Small brewers were crowded out of the market after World War Two, all but disappearing, and have only recently began a resurgence.


The cultural perception of alcohol in different regions has a great effect on the beer industry. The marketing campaigns of beer companies especially have to take this macroenviromental force into account when promoting a product. In some cultures beer consumption is already common but many areas of the world traditionally prefer other forms of alcohol. As well, different forms of alcohol and beer may have more or less of a social stigma attached to them.

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