Analysis of beer market in China (on Russian)
Beer market of Ukraine: big three losing weightIn 2016, fast increase of excises and resulting price spike stood in the way of the beer market stabilization. Most of competition (as well as mass sorts) moved to the economy segment of the market. The biggest losses were incurred by the leading three, especially Obolon, which again experienced pressure after reallocation of Efes market share. However, one should already speak of TOP-4. Group Oasis CIS (PPB) became a strong player and competitor to transnational companies. Besides the net sales of many regional medium breweries look rather good and 16-fold cost reduction wholesale trade license for craft brewers opens up a possibility of rapid growth in 2017.
Analysis of beer market in China
China’s transition to a “new normal” reality backfired on the brewing industry unexpectedly. Stagnation and subsequent market decline resulted from dynamic social and economic changes. There has emerged a “two speed” market where the medium class significance is growing, yet the share of main beer consumers, “blue collar” is decreasing. Also the inflow of consumers is shrinking, as demographics stopped being a growth driver. Finally, beer is giving way to other alcohol drinks....
China. The turning point in the brewing industry has happened long ago
Based on the last 10 years, we can see the following situation. In the period from 2005 to 2007, the production of beer in China grew at double digit rates. With the 2008 crisis, the rate has slowed dramatically, and then sharply renewed. But after the peak in 2011, the industry has demonstrated stably low rates of growth until 2014, when the first decline occurred. From that year, the operational data on the dynamics of beer production were mostly negative.
Thus, the year 2014 was a moment when the problems of the Chinese brewing became evident. However, since 2012 there has been a future decline in the industry.
19 Feb. 2016