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. Second tier brands are moving into the high-end segment
Import growth is not the only thing that concerns Chinese brewers. 70% of the beer market in China accounts for 5 major brands such as Snow, Tsingtao, Yanjing Beer, Budweiser and Carlsberg. The second tier brands bring losses and are on the verge of survival, Guangdong Express Media writes.
However, the problems of Pearl River beer, Venus beer, Kingway, Henan Jinxing, Guangzhou Zhujiang are not only in bad weather and economic situation of the country.
The growth of imports and the change of beer drinkers generation have brought a change in their preferences. More and more people are more likely to buy high-quality products of the premium segment.
Zhujiang Beer has realized it and focused on product quality and brand positioning. In 2015, the operating profit of Zhujiang Beer grew by 4.67% and reached 6,176.95 million yuan. Despite a slight decline in profit margins, this result already shows a good position of the company in Guangdong province and the increase in the brand strength in China.
15 Mar. 2016