While Australia's $4.3 billion beer brewing sector is suffering a hangover, business is booming for the nation's meat processors.
Business research provider IBISWorld's latest listing of the top 100 manufacturing companies by revenue reveals that several sectors in which the companies operate are struggling or generating weak growth.
IBISWorld senior industry analyst Spencer Little says beer industry revenue is set to decline by 1.1 per cent in 2015/16 as consumers drink less alcohol, particularly traditional brands of beer.
Average consumption of beer per person per year was 92.4 litres in 2013/14 - the lowest level in 70 years.
"Declining beer consumption and also rising competition inside and outside the industry have weighed on sales of the traditional beer brands, and weakened the revenue and profit of the industry," Mr Little said on Wednesday.
Instead of the mass-market, traditional brands like Victoria Bitter, Carlton Draught and XXXX, consumers want premium, healthier beers, including foreign labels, low-carb and boutique craft beers.
"A lot of smaller brewers are focusing on European and American styles that haven't really been represented in the Australian market," Mr Little said.
Consumers were also shifting to cider.
In contrast to the beer sector, Australia's meat processing sector is forging ahead.
Agriculture and associated food processing sectors, especially meat processing, are expected to grow strongly in 2015/16, driven by free trade agreements, increasing global demand for Australian produce, and strong prices.
The meat processing sector is expected to grow revenue by 11.8 per cent in 2015/16.
Mr Little said meat processor and wholesaler Bindaree Beef, which was 87th on the top 100 manufacturers list, had moved up 59 places from last year.
"This is being driven by strong demand for high-quality Australian meat, particularly in Southeast Asia - China's is certainly a big one," Mr Little said.
"A depreciating Australian dollar more recently has certainly helped this growth."
IBISWorld says Australia's largest 100 manufacturers, which employ more than 260,000 Australians, generated more than $282 billion in revenue in the last financial year, down slightly from nearly $300 billion a year earlier.
Australian manufacturers were finding it hard to compete with Asian manufacturers that had far lower labour costs and overhead costs.
"While Australia's manufacturers are finding it tough to compete, it is anticipated that the downward trend across manufacturers will ease and a contraction of only 0.1 per cent is expected in 2016/17," Mr Little said.
Highlights of the IBISWorld top 100 manufacturers
* Caltex: still number one on the list by revenue generated
* Fonterra Co-op Group: up to third, from fourth last year.
* Perth Mint: made it into top 10 for first time
* General Motors Holden: slipped one place to 20th
* Bindaree Beef: up from 146th last year to 87th
