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.
Beer market of Vietnam: “Young tiger”Vietnam is one of the few big beer markets that continue to grow steadily. The beer popularity results from its low price, street consumption culture, and social motives. The outlooks of beer market as well as the Vietnamese economy inspire optimism, though the country is heavily dependent on export of goods. The state regulation can be called liberal, but the key risk for brewers is harbored in intensive rising of excise. Within TOP-4 there are two leaders, Sabeco and Heineken that grow at the fastest rates. The first company effectively employs its capacities, the second one focuses on marketing technologies. Almost 80% of the market belongs to century-old brands, yet the middle class and the youth are shifting their interest toward international premium that is growing taking share from the mainstream.
Africa set to eclipse Asia in beer – research
In its 'Global Beer Trends 2015' report, released late last year, Canadean has forecast that Africa will record an average growth rate of 5% from 2015 to 2020. This performance contrasts with the more mature markets in East and West Europe and North America, where 1% or even less is predicted from 2015 to 2020.
Asia, meanwhile, will grow at an average rate of 3% until 2020, reaching around 900,000 hectolitres.
Emerging Africa markets will drive growth
The Africa region is anticipated to see an incremental volume increase of over 37,000 hectolitres by 2020. Canadean analyst Piyumika Jayasena, said: "This notable growth will be fostered by the flourishing economic parameters such as increasing GDP growth rates, fast growing urbanisation and, above all, the rising population with a working age demographic set to surpass that of China and India."
Top 10 Africa Beer Markets and Ranking - 2020(F) versus 2015(F)
South Africa is by far the biggest volume contributor for the region, followed by Nigeria and Angola. In terms of per-capita beer consumption, Seychelles, Equatorial Guinea and Gabon will take the lead, with all three forecast to hit 100 litres each by 2020.
Zambia, meanwhile, is rapidly increasing its consumption volumes, and is expected to surpass Mozambique, Congo (Brazzaville), Ivory Coast, Zimbabwe and Burundi by 2020. Kenya and Ethiopia are also climbing the volume ladder.
"The consumption growth in these markets will be stimulated by the consumer migration from home-brewed to more commercially-brewed beers and subsequently towards premium brands," notes Jayasena. "It will further be backed by the booming population in these markets."
However, of concern on the continent will be the lack of infrastructure, political unrest in certain countries like Nigeria and Kenya, the outbreak of epidemics such as Ebola virus in 2014, and heavy excise duties. Despite this, Jayasena notes: "The region is set to exploit its untapped resources, both natural and human, to become the world's fastest-growing beer consumption region."
11 Jan. 2016