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 domestic market has been divided among five major brewers of China
Snow Beer, the Chinese leader, controls more than 20% of the market, most of which accounts for the provinces of Liaoning, Sichuan, Guizhou, Anhui. The production of Tsingtao Brewery is concentrated in Shandong, Shaanxi, Central Plains and Northeast.
Yanjing Brewery settled down in Beijing, Inner Mongolia, Guangxi. The world brewing leader AB InBev keeps the control over the North-Eastern part of the country through its subsidiary – Harbin Brewery. AB InBev has also placed its production in Hubei, Fujian and gained access to the market of South China through the joint venture with Guangzhou Zhujiang Brewery Group Co., Ltd. – Guangzhou Zhuajiang Brewery Co., Ltd., where it owns 25% of the shares.
Despite the fact that the top companies are represented better or worse in certain regions, their products can be found throughout the country.
Danish Carlsberg in China is called the “king of the west”, because this part of the country is most covered by the company. The Carlsberg breweries are located in Xinjiang, Ningxia, Chongqing and Yunnan.
8 Apr. 2016