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 craft beer movement is already happening in China
And, that’s actually why the Tampa-based franchise is making its way to Shanghai in May.
“The numbers by volume are huge, and as the craft beer movement is exploding globally, World of Beer feels like the timing for entry into China could not be better,” adds Everts.
The franchise is already in 20 states across the country, with Shanghai being its first International location. Cong Yin, a franchisee at World of Beer Shanghai, says they have plans to open at least three more locations in the next three years.
“The craft beer movement is already happening in China - and the younger generation is demanding alternative options in beer choices. Also as a result of rising disposable incomes of the general population, premium brands are becoming much more popular and affordable,” Yin tells FOXBusiness.com.
Other big beer companies are taking notice to the growing market as well. In 2014, Anheuser-Busch InBev (BUD) acquired two Asian breweries; Jilin Ginsber Draft Beer and Jiangus Regal Beer. And according to the Euromonitor report, stout witnessed the fastest volume growth among all other beers in 2014, up by 85% -- this alongside the rising number of pubs, bars and Western restaurants in China.
Yin says Snow Brands, a joint venture between SABMiller and China Resources Enterprises, is the most prominent beer available in China and currently the best-selling beer brand in the world.
“However, craft beer is now beginning to fill the narrow gap between selections that have been available in the past,” he adds.
World of Beer says after Shanghai, its next focus will be India and the Philippines.
“There are areas that show terrific potential for the craft beer growth going on globally. South [America?] also shows a strong potential,” adds Everts.
1 Apr. 2016