China Beer Industry – Market Analysis, Forecasts and Opportunity Assessment (2016-2023)

Report on China Beer Industry – Market Analysis, Forecasts and Opportunity Assessment (2016-2023)

Introduction to China Beer Industry

China has had its own forms of beer since the last nine thousand years. Recent findings have shown that the Chinese were producing beer-like drinks from 7000 BC on a small scale. Then it was called Lao Li. Modern beer making techniques were introduced in China by Russians, who established a brewery in Harbin in the 19th century. In China, beer is enjoyed a lot and there is a good market of beer with different players having different types of beer. Beer in China is found in the form of Craft Beer, Snow Beer, premium beers and local beers by local breweries. Recently, there has been a rise in the consumption of beer in China. As of 2015, the market share of imported beer in China Beer Market was 58.9% with 538.5 million liters being consumed. Beer in China is famous enough to have beer festivals in various cities, the most famous being the Qingdao Beer festival. It is so famous, in fact, that it is called Asia’s Oktoberfest (Oktoberfest is Germany’s beer festival which is famous globally).

Market Dynamics of Beer

China beer market is the largest beer market in the world. The consumption statistics show that there is almost 45.7 billion litres beer consumed in a year in China. Chinese beer consumption makes up about 75% of the world’s beer consumption. This increase in the consumption of beer can be attributed to the rise of the middle classes, with them being armed with a better purchasing power thanks to the growth of Chinese economy. Millennials especially show a great liking to beer and a much of the revenue generated by the beer market in China comes from them. As the consumption rises, the differentiation in beer brands has increased with individual demands and expectations getting more nuanced.

This makes the Chinese beer market a lucrative playground for the exporters of beer all over the world, with Germany exporting the largest quantities of beer to China in terms of volume in the whole of EU. China has been importing an increasing quantities of beer from abroad, with the export numbers rising by double digit percentages.Even global companies see China as a market rife with opportunity, with Heineken, the world’s leading brand of beer, investing in the Chinese beer in landmark deal with Chinese brand Chinese resource Enterprise and China Resources Beer, investing around $300 million as of August 2018. China itself has recently supported the import of beers, with traiffs being reduced from 15.3% in 2000 to 9.3% in 2017.
Cities like Shanghai, Beijing and Tianjin have emerged as the largest consumers of beer in China. This goes to show that much of the beer consumption is based around Tier 1 cities with increasing population and increasing opportunities for the youth of the nation to earn more.

Market Segmentation of Beer

The beer market in China is segmented into many parts as beer is different for different breweries. The logical conclusion to this fact is that beer types and styles will be as varied as the breweries in China. Still, recently two forms of beer have taken China by storm; Craft beer and Snow beer.
Craft beer is beer made by a traditional or non-mechanized way by small breweries, with Chinese ingredients, barley, hops and spices from around the world.
Snow beer is a lager beer, which means it is a beer conditioned at low temperatures.
Chinese beer can be segmented as follows:
• Mass consumed Chinese beer
• Leisure beer
• Craft beer
• Foreign brands on tap

Regional/Geographic Market Analysis of Beer

Beer is made by small and established breweries across China.

Key Market Players of Beer

The major players in the Chinese beer market are made up of local breweries which serve in their vicinity. They are Great Leap Brewing, Xian Brewery, Liquid Laundry, Gleckes Beer, Hangzhou Qiandaohu Beer Co. Ltd., Harbin Beer, Reeb, Snow Beer, Tsingtao beer, Yanjing beer, Zhujiang beer, China Pabst Blue Ribbon, Wusu Beer, Kingway Beer, Jinxing Beer and Shangri – la beer.

Major Trade Partners

China was among the top exporters of beer in the world with $227.6 million worth of beer exported from China, making up 1.5% of the total world exports of beer.
Exporter from around the world export beer to China, which is the world’s largest market of beer. Countries in the European Union are exporters to China, with Germany being a major trade partner for China.

Report Highlights

• China Beer Market Segments
• China Beer Market Drivers, Restraints and Opportunities
• China Beer Market Size and Forecast 2016 to 2023
• Supply and Demand Value Chain
• China Beer Market Current Trends
• Competition and Major Companies
• Technology and R&D Status
• Porters Five Forces Analysis
• Strategic and Critical Success Factor Analysis of Key Players

Regional analysis of China Beer Market includes

This report is an elaborate aggregation of primary inputs from industry experts and participants across the supply chain. It provides in-depth market segmentation that is derived from extensive product mapping exercises, macro-economic factors and other qualitative and quantitative insights. The impact of all such factors are delivered across multiple market segments and geographies.

Report Highlights for China Beer include:

• Detailed Historical Overview (Market Origins, Product Launch Timelines etc.)
• Consumer and Pricing Analysis
• Market Dynamics of the Industry
• In-depth Market Segmentation
• Historical and Projected Market Sizing in terms of Volume and Value
• Recent Market Trends and Impact Factors
• R&D Status and Technology Overview
• Extensive Industry Structure Coverage

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