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Beer Industry Overview

In 2015, China produced about 47.16 billion liters of beer with a decline compared to 2014. In 2015, the beer consumption per capita was about 35 liters in China, surpassing the international average. 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 2015, which tended to rise further. Different from the traditional strategy featured by stressing low prices to occupy more market share, beer manufacturers in Chinese market gradually focus on increasing the proportion of mid-high products and average prices to enhance the profitability. The average price of Chinese beer is rising, which promotes the increase of profits in the industry.

In 2015, China imported 538.3 million liters of beer with the YOY growth of 59.2%. The import value reached USD 570 million, with a rise of 42.5% YOY. The share of German beer declined from 48.3% in 2014 to 34.9% in 2015. On the contrary, the share of beer from other origins somewhat increased. Overall, Chinese consumers take delight in trying beer with different tastes from various regions all over the world. The average price of imported beer somewhat declined. It is expected that in the next few years imported beer, to some extent, will exert a certain impact on China's domestic mid-high end beer market.

With the development of economy, Chinese consumers' purchasing power keeps rising. And the consumption concept also upgrades. Consumers gradually tend to choose beer with high quality instead of low prices. Therefore, the sales volume of low-end beer suffers from the rapid decline. In China, mid-high end beer market enjoys a robust growth rate, which promotes breweries including China Resources Snow Breweries, Tsingtao Brewery, Yanjing Beer to speed up the product upgrading with the detrusion of high-end products in order to keep up with the trend of consumption upgrading.

More details:

China Beer Industry Overview, 2011-2020