Global hop marketA local alternative to mass beer suggested by independent brewers has been successful and is now altering the global market. Beer is becoming more diversified, so transnational companies have to accept the new game rules and to switch focus to young and fast growing markets. All these processes increased the demand for aroma and bitter hop as well as their acreage expansion on two continents. However now there appeared a downward trend of alcohol consumption in the world, so even special sorts can soon turn to be sufficient. In this connection the dynamic American hop market is already facing some problems. EU hop producers have become more cautious, they are not racing to exceed the demand and look forward with more confidence, judging by the contract terms.
Hop Market in RussiaGermany still dominates the Russian market, yet over the recent two years one has been able observe a continuous success of Czech hop suppliers. Their expansion and growing popularity of hops from the United States became the drivers of supplies growth in 2016 despite the preceding modest harvest crop in the EU, as well as the factor of relative stability in 2017. In this connection, in 2017, the ratio of the varieties continued to shift towards the aroma ones, and the supplies of Magnum hop and other alpha varieties were reduced. However, the import of bitter hop pellets is partially replaced by extracts, especially from the major beer manufacturers. Total volumes of alpha acid supplies, according to our estimation, decreased by approximately 5% and returned to the level of 2015. Barth Haas Group continues dominating the hop products market; HVG also increased its weight. At the same time, Morris Hanbury significantly reduced the supplies in 2017.
10+1 trends of Russian beer market 2015-2017Despite of the moderately negative prognoses for 2017, the beer market can be stabilized soon. Yet the years of the negative dynamics have resulted in marketing being limited just to “optimization” and the art of balancing between price and volumes. Bigger supermarkets share means stronger trade marketing. These processes are connected to the majority of the described trends. At the same time, the federal brands inflation leads to searching for new tastes, sales channels and contact formats that expand the product range and diversify the beer market, but do not imply a substantial volume increase. Let us enumerate and further discuss the ten trends of the beer market we can see in 2015-2017 as well as the major event of 2017.
Beer market of Ukraine 2017In the first half of 2017, the Ukrainian beer market goes on decreasing slowly. Yet, the companies manage to compensate their lost volumes by raising prices and improving the sales structures. This results in the mid price market segment reduction while the sales of premium brands are rising. These processes are connected to position strengthening of companies Carlsberg Group and Oasis and the market share reduction of Obolon. Most of the novelties by the market leaders belong to craft or hard lemon categories.
Beer market of Russia 2016: PET goes to draftThe beer market of Russia was warmed up by the hot summer, but the preparation for large volume PET prohibition has already impacted it negatively. The year was successful for Efes, MBC and regional producers; Carlsberg’s positions were virtually stable but AB InBev and Heineken lost a part of market share having focused on the sales profitability. The dynamics of big brands was determined by how much the companies were willing to keep the prices down or by their promotional activity. In this context the economy segment of the beer market and sales of inexpensive draft beer were increasing. The premium segment started shrinking due to license brands migrating to the mainstream segment.
Vietnam. Thirsty drinkers make beer market sparkle
“Vietnam is one of the largest beer markets in Asia-Pacific and of the highest growth potential,” Christopher Kidd, regional director of Singapore-listed Asia Pacific Breweries Ltd, which makes Heineken and Tiger beer, told VIR
Vietnam was the second largest beer market in Southeast Asia after Cambodia in 2009.
The market was forecast to expand by 5.6 per cent in the following years trailing behind Laos and Cambodia, released by research company Euromonitor International early last year.
Leading breweries including Sabeco and Habeco which currently account for 35 and 20 per cent respectively of the country’s beer market also saw a great expansion in their production and breweries according to Vietnam Beer, Alcohol and Beverage Association (VBA).
Sabeco reported fulfilling their projects and starting operation of its new breweries such as Saigon-Phu Ly Brewery with designed capacity of 100 million litres per year in May 2010, Saigon-Song Lam Brewery (100 million litres per year) and Saigon-Quang Ngai Brewery (100 million litres per year) in June last year.
“Last year our total production output reached 1.1 billion litres of beer, or 109 per cent of the annual target and an increase of 21 per cent against 2009. We expect to see the growth rate further with 20 per cent in 2011,” said Nguyen Quang Minh, general director of Sabeco.
Meanwhile Habeco, the leading brewer in northern Vietnam, also reached around 600 million litres of beer in 2010 or 102 per cent of the year’s plan and rising 31.6 per cent year on year, according to VBA.
MoIT deputy minister Ho Thi Kim Thoa said the domestic beer market would become increasingly severe in the coming period as more rivals would jump into the race.
Some major beer companies in the world such as Budweiser, Sapporo, San Miguel and Foster have found their ways in Vietnam.
Previously, Sapporo Holdings Ltd expected to launch beer production in Vietnam in early 2012, its second overseas facility after Canada.
“Sapporo will construct a brewery in a suburb of Ho Chi Minh City, the first beer plant to be built by a Japanese brewer in Vietnam where beer sales have been growing at an annual rate of more than 10 per cent,” quoted Japan Today online newspaper.
14 Feb. 2011