China beer industry

In addition, the report truly reflects the position of foreign enterprises in beer industry across China based on a comprehensive comparison of operating conditions among different enterprise types.

China beer industry

In addition, a rise in the number of women who consume alcohol—especially wine—has expanded the China market. Overall, Chinese consumers are increasingly willing to try new varieties of alcoholic beverages.

For example, companies must determine how to alter or market their products to appeal to Chinese consumer tastes and increasing health concerns. They must also maneuver through a changing regulatory environment.

Companies that closely track market developments are on the path to success. Drinks of choice Grain-based alcohol used in spirits is the earliest known alcohol found in China. To this day, grain-based alcohol, such as baijiu—a high-strength alcohol typically made from sorghum, rice, wheat, or barley—is most commonly served during traditional occasions, such as holidays and formal events.

Being the traditional and indeed, the national drink of China, baijiu accounts for almost the entire spirits market. Standard lager is the preferred beer in China, but sales of low-and no-alcohol beers are rising faster than those of lager.

In terms of spirits, baijiu, brandy, whiskey, and vodka have the highest sales volumes. Recently, an expanding elite consumer segment in China has boosted sales of premium spirits such as whiskey.

Datamonitor estimates that whiskey sales will increase by 24 percent in the next five years. Rising demand for premium whiskey is also prompting companies such as Diageo plc to boost its sales through exclusive retail stores in upscale areas of major Chinese cities. The sales volume of brandy and rum may rise twice as fast as the overall alcoholic beverage sector untiland gin and tequila may also experience a surge in demand.

Wine has recorded big increases in sales volume growth rates, with a 32 percent jump during and an estimated 24 percent jump during Red wine contributes nearly 62 percent of total wine sales by volume, and white wine contributes another 38 percent. Globally, China ranked first in overall alcoholic beverage sector sales volume in see Figure 1.

According to Datamonitor estimates, the rankings were similar in The boost in income has enabled Chinese consumers to buy more expensive types and brands of alcohol—including foreign.

It has also enabled consumers to go out more, which has led to the development of more pubs in China. Furthermore, an increasing number of big-city consumers with rising incomes are embracing wine, which many Chinese consider a fashionable Western drink.

Chinese history reveals that laws against wine production were enacted and repealed 41 times between BC and AD. In the late s and s, the PRC government took measures to promote responsible and healthier drinking habits among Chinese consumers and reserve more grain for food consumption by encouraging fruit-based alcohol instead of grain-based alcohol.

The government launched campaigns to encourage the consumption of grape wine and beer rather than stronger grain-based baijiu. Increased consumption among female consumers is fueling this strong growth. Though it is socially acceptable for men to consume high-strength alcohol, the concept of women consuming high-strength alcohol such as baijiu is still not fully accepted in Chinese culture.

China beer industry

Changing social conditions in recent years have led to the wider acceptance of drinking among women, however.China's beer industry competition pattern basically took shape. The market concentration rate of top 5 giants including China Resources Snow Breweries, Tsingtao Brewery, Anheuser-Busch InBev, Yanjing Beer and Carlsberg reached 76% in , which tended to rise further.

In China, the beer market scale is keeping a steady growth tendency. Although its sales volume appears a slight decrease, the revenue in beer industry does not suffer much impact as the increase in unit price.

China’s beer industry is entering a new era, and it finds itself needing to satisfy a new set of cravings. Millennials make up a third of the country’s population and they are switching to imported premium brands, flavoured alcoholic beverages and ciders.

However, the industry is still in its infancy in China because consumer awareness of craft beer is not strong.

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Yet, amid the beer market downturn, craft brewers will have to face a new challenge from the industry . China is more than twice the size of the world’s second-largest beer market, the US, and is “expected to account for more than 30 per cent of industry volume growth in the next 10 years.

The First Ever “Crafty Beer Fest” in Shenzhen, China – A Review Leading up to last weekend’s Crafty Beer Fest in Shenzhen, I couldn’t help but think of Hong Kong’s Beertopia.

Although the amount and range of beer, and the location, were incredible, I documented how bummed out I was at the prices there.

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