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....
The Chinese continue to consume more import beer
In January-February 2016 beer delivery from abroad increased by 29.7% to 51.59 million litres. 39.79 million litres were imported to China for the same period of last year.
This rate of imports indicates a demand growth for foreign brands of beer, for which product quality is guaranteed. With income growth, the Chinese tend to get a quality and delicious product for their money, so they give preference to imported products. In turn, the population with low income due to the downturn in the economy is more tend to save than waste money. This entails a decline in sales of cheap beer.
The tendency to increase the volume of foreign delivery is maintained for the third consecutive year.
21 Mar. 2016